The LRS allows resident individuals to remit up to $250,000 in a financial year for permitted current or capital account transactions. (File photo)Outward remittances by resident Indians under the Liberalised Remittance Scheme (LRS) rose in June 2026, with total transfers increasing 6.46% month-on-month to $2.55 billion, according to data released by the Reserve Bank of India (RBI).Resident individuals remitted $2,551.34 million in June, up from $2,396.42 million in May as overseas investments in equity and debt and travel outflows rose during the month. The May figure was at $2,127.39 million, indicating a steady acceleration in outward remittances during the first quarter of 2026-27.The LRS allows resident individuals to remit up to $250,000 in a financial year for permitted current or capital account transactions.Travel remained by far the largest component of LRS outflows. Remittances for travel rose 6.6% to $1,366.81 million in June from $1,282.63 million in May. Travel-related transfers accounted for more than half of total LRS remittances during the month, according to RBI data.Education-related travel up, business travel dipsWithin travel, education-related travel saw the strongest increase, rising to $488.32 million in June from $422.97 million in May, an increase of 15.4%. Other travel, which includes holiday trips and payments towards settling international credit card transactions, increased 2.6% to $853.11 million, data shows.Business travel, however, declined marginally to $13.68 million from $13.95 million. Remittances for pilgrimage fell 35.1% to $6.58 million, while transfers for medical treatment involving travel abroad increased 24% to $5.12 million.RBI said the second-biggest increase came from investments in equity and debt. Outward remittances for this purpose jumped 25.6% month-on-month to $456.69 million in June, from $363.64 million in May. The rise suggests a stronger flow of resident funds into overseas financial assets.Outward remittances rise for property, giftsStory continues below this adRemittances for purchasing immovable property abroad also increased substantially, rising 38.9% to $49.65 million from $35.76 million. Though relatively small in absolute terms, the category recorded one of the sharpest month-on-month increases among the major uses of LRS.Gifts, another significant component of outward remittances, rose 5% to $211.49 million in June from $201.50 million in May. Donations remained broadly stable, edging up to $0.75 million from $0.69 million.There were declines in some categories. Transfers for maintaining close relatives abroad fell marginally to $287.04 million from $289.11 million. Remittances for medical treatment without travelling abroad declined sharply, falling 34.3% to $3.23 million from $4.92 million.Remittances classified as “Studies Abroad” increased 4.5% to $96.76 million from $92.61 million. This category covers education services availed remotely without travelling abroad, such as fees for correspondence courses.Decline in deposits abroadStory continues below this adDeposits abroad also saw decline, with transfers falling 40.1% to $70.74 million in June from $118.12 million in May, the data showed.Overall, the June data point to a broad-based rise in outward remittances, led by travel and overseas investments. The jump in education-related travel and equity/debt investments was particularly notable, while the decline in deposits and certain medical and pilgrimage-related transfers partly offset the increase.The LRS allows resident individuals to remit up to $250,000 in a financial year for permitted current or capital account transactions. The latest monthly data indicate that overseas travel continues to dominate the use of the facility, even as investment-linked remittances gain momentum.George Mathew is an Associate Editor with The Indian Express, based in Mumbai. A veteran of financial journalism with nearly three decades of experience, he is one of the country’s most authoritative voices on banking, regulation, and the corporate sector. Expertise & Focus Areas Mathew’s reporting covers the nerve center of India’s economy. His specialized beats include: The Reserve Bank of India (RBI): He has tracked the central bank's policy evolution through the tenures of multiple Governors, offering deep insights into monetary policy, repo rates, and banking regulation. Banking & Insurance: Extensive coverage of public and private sector banks, non-performing assets (NPAs), and key legislative reforms like the Insurance Amendment Bills. Corporate Affairs: Mathew frequently breaks major stories related to India's largest conglomerates, with a specific focus on the Tata Group, documenting boardroom shifts and strategic decisions. Financial Markets: Reporting on the complexities of Foreign Portfolio Investors (FPIs), IPOs, and currency fluctuations. Authoritativeness & Insight With a career dating back to the late 1990s, Mathew possesses a rare institutional memory of India’s financial liberalization and market crises. His work is not limited to daily news; he frequently contributes to the "Explained" section, where he decodes complex financial legislations and market trends for a broader audience. His rigorous reporting has also been featured in scholarly platforms like the Economic and Political Weekly (EPW). Find all stories by George Mathew here ... Read More Tags:LRS