RBI Data: Outward remittances under RBI’s LRS decline 8.2% in April-February

Current Context: The Reserve Bank of India (RBI) recently released data indicating a decline in outward remittances under the Liberalised Remittance Scheme (LRS) during the period April 2024 to February 2025.

Here's a detailed explanation:

• Overall Decline: Remittances fell by 8.2% compared to the same period in the previous year, amounting to $27.02 billion, down from $29.43 billion.

Key Categories:

• International Travel: The largest contributor, decreased slightly by 1% to $15.84 billion, reflecting moderated spending on overseas trips.
• Education Abroad: Remittances for studying overseas declined sharply by 16%, dropping to $2.76 billion, likely due to fewer students opting for international education.
• Maintenance of Relatives: Transfers for supporting relatives abroad fell by 22%, reaching $3.3 billion.
• Immovable Property Purchases: Interestingly, this category saw a 28.32% increase, growing to $277.7 million, showing growing interest in acquiring assets abroad.

Question:

Q.1 What was the percentage decline in total outward remittances under the Liberalised Remittance Scheme (LRS) during April 2024 to February 2025 compared to the same period in the previous year?
a) 8.2%
b) 5.6%
c) 10.1%
d) 12.3%

Answer: a) As per RBI data, remittances fell by 8.2%, decreasing from $29.43 billion to $27.02 billion over the specified period.