A significant drop of 39 percent in remittances during July

– According to RBI’s monthly bulletin, $2.36 billion was remitted abroad under the liberalized remittance scheme.

Updated: Sep 20th, 2023

MUMBAI: Remittances sent abroad to individual residents under the Reserve Bank of India’s Liberalized Remittance Scheme (LRS) declined by 39.36 percent in July 2023 compared to the previous month. This situation has arisen due to a sharp reduction in remittances from close relatives for expenditure and investment.

According to the monthly bulletin issued by the Reserve Bank of India for July, remittances under the scheme were $2.36 billion in the month, as against $3.89 billion in June 2023. However, it is 19.02 percent higher than the $1.982 billion remittances in July 2012.

Deposits fell to $50.12 million in July from $227.32 million in June 2023. Similarly, investment in equity/debt declined to $58.06 million in July from $314.73 million in June 2023.

Apart from this, real estate purchases also fell to $50.6 million in July from $314.73 million in June. During this period, remittances for close relatives’ expenses declined from $890.89 million to $282.3 million.

One of the reasons for the decline in the liberalized remittance scheme is the earlier postponement of remittances in June. People might have taken this step in June because of the changes in the Liberalized Remittance Scheme tax scheme.

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