Following the revision in outward remittance limit for individuals by RBI under the liberalised remittance scheme (LRS) from $125,000 to $250,000 in February 2015, FY16 witnessed a 3.5 fold jump in remittance over the previous year from $1.3 billion to $4.6 billion.
Remittances on account of maintenance of close relatives abroad. It accounted for 30% of the total money remitted out during the year. Money remitted for the purpose also witnessed 8-fold jump over last year.
Outflow of funds under LRS for study purposes and the amount remitted jumped over four times against last year.
Remittance for the purpose of travel in FY16. It jumped almost 60 times from $11 million in FY15.
This is the highest ever outflow under the liberalised remittance scheme in a year. The previous high was in FY15.
While a Reserve Bank of India official had earlier said that the rise is also a result of change in classification for disclosures of remittance by financial institutions, the unprecedented rise in remittances had also come under the scrutiny of the Reserve Bank of India and the central bank had asked for data from the authorised dealers to understand the reason for this emerging trend.