Outward remittances under the Reserve Bank of India's Liberalised Remittance Scheme rose three point six percent to two point three nine billion dollars in May. This increase was primarily driven by a surge in international equity investments and deposit placements.
$2.39 billion
Outward Remittances
May 2025: $2.31 billion→$2.39 billion
⏳ Time Machine
How today’s news fits into the bigger picture
2004
Liberalised Remittance Scheme launched
The RBI introduces the LRS facility with an annual limit of $25,000, simplifying how resident Indians send money abroad.
2015
Chinese capital outflow crisis
Wealthy citizens in China move historic levels of capital into international real estate and dollar assets to hedge against domestic yuan weakness.
2023
Upfront remittance tax hiked to 20%
The central government increases Tax Collected at Source on foreign transfers over ₹7 lakh to discourage capital flight.
Today
RBI data reveals LRS outward remittances hit $2.39 billion in May despite high taxes.
What happens next?
Indian wealth management firms are projected to expand their global investing desks as retail interest rises.
According to the latest data released by the Reserve Bank of India on Wednesday, outward remittances under the Liberalised Remittance Scheme (LRS) grew by 3.6% year-on-year to reach $2.39 billion in May 2026. This growth is highly significant because it occurred despite the government's recent imposition of a steep 20% Tax Collected at Source (TCS) on most foreign remittances. While traditional high-spending categories like overseas travel and international education experienced a slight decline during the month, this was more than offset by a sharp rise in offshore equity investments and foreign bank deposits. Wealthy Indian households are increasingly seeking to diversify their wealth globally, looking to hedge against domestic currency depreciation and tap into international market opportunities, showing that regulatory tax barriers have failed to dampen the demand for global assets.
💭 If you're wondering…
To curb excessive capital outflows, keep retail savings within the domestic financial system, and track high-value foreign asset ownership more closely.
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Official sources
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