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20-25% Remittance Upsurge during the Festive Season

Thursday, 12 November 2015
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Festive season usually brings in an upsurge in remittances, with expats sending money back home to their loved ones.

The Indian diaspora world over, has made India into one of the world’s largest remittance receiving country. To increase their family’s standards of living, Indians living abroad have contributed to this increasingly investment oriented remittance trend, thereby driving economic progress in India. In 2014, India is estimated to have received remittances worth $70.3 billion. World Bank report has projected Indian remittances to increase by 2.5% in 2015.

remittance growth

The exchange value of Indian Rupee Vs US Dollar has come down from 63.3(previous quarter) to 66.4 currently. Every US dollar sent back would now fetch around 3 Indian Rupees more than in the last quarter. With the Rupee depreciation having coincided with the Diwali season this year, the remittance volume is likely to shoot up by 20-25% YoY.

"Remittances are expected to register 2% growth in 2015, as compared to 3.3 % in 2014. However, remittances from oil-exporting countries of the GCC continued to grow as currencies were linked to US dollar and also they have used their reserves to maintain spending levels,” said Promoth Manghat, CEO, UAE Exchange.

States such as Andhra Pradesh, Telangana, Delhi, Maharashtra, Punjab, Gujarat, Uttar Pradesh, Bihar and Tamil Nadu have received huge money transfers during the Diwali season.

Money transfer companies have tugged their witty promotional strategies towards the above mentioned states. To cheer up & encourage customers to remit more, players such as UAE Exchange, Western Union and MoneyGram have begun offering festive contests and goodies such as gold coins, mobiles phone and solar panels. They even offer mobile top-up and zero service charges to customers.

According to Sudhesh Giriyan, COO, Xpress Money, “Additionally, new players in the market will spur competition that could lead to lower remittance costs. We are bullish on this space and expect a 15 % year-on-year growth in remittance transactions on our channel”.

Officials at leading money transfer firms feel remittance volumes are showing signs of improvement.

 

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Last modified on Thursday, 12 November 2015 06:27

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