INSUBCONTINENT EXCLUSIVE:
MUMBAI: Indians doubled their average monthly remittances allocated to deposits in foreign banks and investments in debt and equity
directive to collect higher tax at the source (TCS) from individuals remitting funds overseas.According to data released by RBI, the total
September were 15% higher than the average monthly remittances of $3 billion recorded until August 2023
However, compared to August, there was only a marginal increase of 3% because August sees a seasonal spike in money being sent abroad for
nearly twice the $60 million sent in August
Equity and debt investments increased 121% to $208 million from $94 million in August
There was also a drop in the money sent abroad for donations and medical treatment
FY20, dipped to $1.1 billion in FY21 due to Covid and recovered to $1.6 billion in FY22
In FY23, there was a spike in average monthly remittances to $2.2 billion due to the resumption of travel
licence, the forex demand for travel has been steady, and the actual impact will be known only after the figures for October are released
Post-Covid remittances arising from foreign travel accounted for half of total remittances.The LRS allows individuals to send $250,000
The higher rate of TCS does not apply to remittances for education expenses or medical treatment.
