In FY20, Indians sent a record $18.75 billion in remittances under the liberalised remittance scheme (LRS).
Around $1.34 billion left India in the form of remittances in March alone, The Economic Times reported. Many resorted to shifting their money overseas, most likely on account of collapse in valuations.
In FY20, Indians sent a record $18.75 billion in remittances under the liberalised remittance scheme (LRS). The report noted that remittance outflows from India for the purpose of the assistance of relatives rose to a record $344 million in March.
Meanwhile, lesser money left the country for travel and education as compared to earlier outflows under these heads. Many investors invested their money in funds of funds, which invests in overseas assets, the report pointed out.
Experts told the paper that more people could be sending money for maintenance of family and relatives stranded abroad in light of the lockdown to contain the spread of novel coronavirus, or COVID-19.
First introduced on February 4, 2004, under the LRS, resident Indians are allowed to transfer up to $250,000 per financial year towards a range of permissible current or capital account transactions or a combination of both.