‘Global uncertainty slows overseas remittances under LRS in FY26’: RBI bulletin

In FY26, heightened global uncertainty and shifting geopolitical dynamics caused a slight decline in India’s outward remittances under the Liberalised Remittance Scheme (LRS).

According to RBI bulletin data, outward LRS remittances fell 2% year‑on‑year to $28.9 billion in FY26, down from $29.6 billion in FY25.

The drop was driven mainly by a sharp fall of more than 20 % in remittances for overseas education, which slipped to $2.3 billion from $2.9 billion.

Remittances for international travel slipped roughly 3 % to $16.5 billion.

However, this decline was more than compensated by a surge in remittances for foreign equity and debt investments, which rose 56 % year‑on‑year to $2.7 billion in FY26.

In March 2026, travel‑related remittances decreased to $1.09 billion, down from $1.13 billion in March 2025.

Highlighting the need to monitor outward foreign remittances by purpose, the RBI’s May bulletin—for the first time—broke down travel remittances according to travel purpose.

Of the $1.09 billion, holiday spending and credit‑card settlement abroad accounted for $0.62 billion, while education‑related travel (fees, hostel costs, etc.) represented $0.45 billion.

Analysts told businessline earlier that the decline in overseas‑education spending stemmed from tighter U.S. visa rules and a weak global job market, particularly for STEM positions, prompting students to seek cheaper alternatives.

Likewise, the rupee’s depreciation has encouraged Indians to choose more affordable overseas destinations.

Published on May 22, 2026