Outward remittances surge 28% to $2.4 bn in December

On a year-on-year basis, outward remittances rose 16 per cent in December 2023.

Indians remitted $1.878 billion in November and $2.176 billion during October under LRS, the RBI’s recent data showed.

From October 1, banks implemented the government’s decision to levy higher Tax Collection at Source (TCS) rates on payments under LRS. The higher TCS rates of up to 20 per cent are applicable on various international spends such as overseas tour packages which include travel related to medical treatment, business, education, pilgrimage, personal gifts and donations, family maintenance and investments.

During December, the amount spent by Indians on traveling to foreign destinations stood at $1.54 billion. The data showed that travel constituted around 64 per cent of the total outward remittances allowed under LRS for resident individuals in the month. The amount spent by Indians on travel to overseas destinations stood at $13.4 billion in the first nine months of the current fiscal, the RBI data showed.

Indians spent US$ 267.56 million on education abroad in the reporting month, compared to $207.55 million in November.

Remittances for purchase of immovable property abroad stood at $12.17 million in December as against $10.31 million in November.

Money spent on medical treatment overseas declined to $7.79 million from $8.02 million in November.

Indians spent $219.71 million for maintenance of close relatives living abroad in December, as against $206.63 million spent in the previous month, the RBI data showed.