RBI Data: Outward Remittances under LRS Drop 10% to USD 22.82 Billion in 9MFY25

Current Context: The Reserve Bank of India's (RBI) data on outward remittances under the Liberalised Remittance Scheme (LRS) revealed a 10.15% year-on-year decline for the nine-month period from April to December 2024 (9MFY25).

• The Reserve Bank of India (RBI) released the data on February 23, 2025.

Highlights:

• Total Outward Remittances: Under the Liberalised Remittance Scheme (LRS), outward remittances dropped by 10.15% year-on-year to USD 22.82 billion in the nine-month period from April to December 2024 (9MFY25).
• Major Segments: The decline was observed across several major segments:
• Deposits: Remittances for deposits dropped by 43% year-on-year to USD 422.28 million.
• Maintenance of Close Relatives: Remittances for the maintenance of close relatives declined by nearly 25.2% to USD 2,757 million.
• International Travel: The largest segment, international travel, saw a 2.23% year-on-year decline to USD 13.10 billion.
• Other Segments: Remittances for gifts fell by 21.38% to USD 2,215.5 million.
• Positive Growth: Despite the overall decline, remittances for investments in equity and debt instruments rose by 2.09% year-on-year to USD 1,113.73 million.

Question:

Q.1 According to RBI data released on February 23, 2025, what was the total outward remittance under the Liberalised Remittance Scheme (LRS) for the nine-month period from April to December 2024?
a) USD 24.5 billion
b) USD 22.82 billion
c) USD 25.6 billion
d) USD 21.1 billion

Answer: b) The total outward remittances under LRS declined by 10.15% year-on-year, amounting to USD 22.82 billion for the period April–December 2024.