Digitalisation lowers costs and to boost volume of inward remittances
Reserve Bank of India said that global acceptability of the UPI and the development of CBDCs — can lower the cost of remittances, enhance their volume and also inflows to the recipients.
ET Guide to ITR
Which ITR form salaried taxpayer should use
What is the penalty for filing ITR after the July 31 deadline
ITR filing: Claim these 4 deductions to reduce your tax outgo
Average cost of remittances, through Fintechs was the lowest at 4,2 percent compared to 5.4 percent through money transfer operators and 11.5 percent through banks for every $200 remitted in 2023, the latest Report on Currency and Finance said.
For India, in Q4:2023, the cost of remittance from Singapore, Malaysia, the UK, Kuwait, Italy and Bahrain was within the SDG target, while the cost from Thailand and South Africa was more than 10 per cent (Chart IV.9d). This may be due to the dominance of banks in the latter set of countries, while the former countries have a competitive remittance industry with banks facing competition from money transfer operators (MTOs) and FinTechs. RBI said.
A study published in the report explains that a one per cent decrease in the cost of remitting US$ 200 leads to about a 1.6 per cent increase in remittances, the study said. Based on the trends observed over the past decade, remittances to India are estimated to increase to around $ 160 billion in 2029 from US$ 115 billion in 2023.
(Join our ETNRI WhatsApp channel for all the latest updates)
Also, India is poised to be the world’s leading supplier of labour and is
