Driven by travel, outward transfers jump 6% to $2.7 billion

MUMBAI: Outward remittances under RBI’s Liberalised Remittance Scheme (LRS) rose 6% month-on-month to $2.7 billion in Aug 2026, driven by overseas student travel, business travel and payments for remote education, while investments in foreign equity and debt more than doubled from a year earlier.Travel accounted for 59.5% of total remittances, rising 11.4% from July to $1.6 billion. Within this, remittances for overseas education travel, including fees and hostel expenses, rose 28.5% to $855.5 million from $665.8 million.Business travel surged 365.4% to $51 million from $11 million, while other travel, including leisure trips and international credit card settlements, fell 7.4% to $713.8 million. Spending on pilgrimage travel declined 46% to $5.5 million and remittances for travel-related medical treatment fell 17.7% to $4.5 million.Investments in foreign equity and debt instruments fell 6.7% from July to $321.5 million but were 111.3% higher than in Aug 2025.Remittances for maintenance of close relatives declined 2.8% month-on-month to $275.4 million, while gifts fell 6.8% to $215.7 million. Both categories recorded annual increases of 1.2% and 13.3%, respectively.Remittances for remote and distance education rose 29.2% to $191.8 million from July but were 39.9% lower than a year earlier. This category covers educational services consumed remotely, including correspondence courses and online degree programmes, rather than expenses involving physical travel abroad.Deposits abroad rose 8.8% monthon-month to $50.8 million and were 18.8% higher year-on-year. Remittances for overseas property purchases fell 22.2% to $39.6 million from July but were 9.9% higher than a year earlier. Other remittances declined 13.3% to $8.1 million, while payments for remote medical treatment rose 23.2% to $4.8 million. Donations fell 34.2% to $0.5 million.You use AI every day. Now get your AI Quotient. Take the AIQ test.