Remittance money grew threefold in February: RBI 

Indians have remitted approximately US$316.81 million during February in FY21 to US$1billion in FY22

April 21, 2022

The money sent by Indians under the Liberalised Remittance Scheme (LRS) for inhabitants residing in other countries increased threefold.

Indians have spent approximately US$3.23 billion on travelling and leisure activities during FY21.

For the upkeep of close relatives in abroad, Indians remitted around US$282.61 million during February FY22.

Expenditure on overseas education and accommodation has declined to US$216.07 million during February FY22 from US$383.27 during February FY21.

The remittance sent by Indians under the Liberalised Remittance Scheme (LRS) for inhabitants residing in other countries increased threefold from US$316.81 million in February FY21 to around US$980.45 million during February FY22, surpassing the pre-pandemic levels of US$539.74 million in FY20. 

Indians spent approximately US$3.23 billion for travelling and leisure activities inFY21, as per a recent report by RBI, which is a decline from US$6.95 billion in FY20. However, a few travel analysts state that with the ease of covid restrictions, travelling and other leisure activity business will pick up pace. 

For upkeep of close relatives abroad, Indians remitted around US$282.61 million in February FY22, indicating a considerable increase from US$215.18 million in FY21. However, this is a significantly lower amount compared to the US$342 million remitted in February FY20. 

Expenditure on overseas education and accommodation has declined to US$216.07 million in February FY22 from US$383.27 during February FY21. FY20 saw approximately US$496.87 million being spent on education abroad. 

Credit Analysis and Research (CARE) Ratings stated that International flights are expected to work at full capacity and reach pre-Covid levels by early FY24 after travel restrictions are lifted on March 27, 2022.