Indians sending home close to 80 billion USD per year, says World Bank!

    India is going to witness a 16.18% increase in remittance inflow this year(2018), the latest World Bank report on migration and remittances reveals. While the remittance inflow to India in 2017 was $68.9 billion, according to the World Bank the remittance in 2018 is expected to be $79.4 billion.

India is followed by China ($67 billion), Mexico and the Philippines ($34 billion each), and Egypt ($26 billion), according to the report.

The 2017 remittances constituted 2.7% of India’s GDP. While the figure was $70.3 billion in 2014, in 2015 it was $68.9 billion and in 2016 it was $62.7 billion. Remittances to South Asia are projected to increase by 13.5% to $132 billion in 2018, a stronger pace than the 5.7% growth seen in 2017.

“The upsurge is driven by stronger economic conditions in advanced economies, particularly the United States, and the increase in oil prices having a positive impact on outflows from some Gulf Cooperation Council (GCC) countries, such as the United Arab Emirates, which reported a 13% growth in outflows for the first half of 2018,” the report added.

The GCC is a regional inter-governmental political and economic bloc of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

The report adds that Bangladesh and Pakistan might experience upticks of 17.9% and 6.2% in 2018 respectively.

The World Bank estimates that officially recorded remittances to developing countries will increase by 10.8% to reach $528 billion in 2018, against a 7.8% growth in 2017. 

Global remittances, which include flows to high-income countries, are projected to grow by 10.3% to $689 billion, it said.

“Even with technological advances, remittance fees remain too high, double the SDG target of 3%. Opening up markets to competition and promoting the use of low-cost technologies will ease the burden on poorer customers,” said Mahmoud Mohieldin, Senior Vice President for the 2030 Development Agenda, United Nations Relations, and Partnerships at the Bank.

Meanwhile, for 2019, it is projected that remittances growth for the region will slow to 4.3% due to a moderation of growth in advanced economies, lower migration to the GCC and the benefits from the oil price spurt dissipating.

Reserve Bank of India takes action to Currency!

After 20 years! - Reserve Bank of India to put one rupee notes back in circulation!!

The Reserve Bank of India said in a statement that it will soon put one rupee notes back in circulation.

The printing of the notes had been discontinued about 20 years ago, and at present one rupee coins are minted.

"The RBI will soon put in circulation currency notes in one rupee denomination. The notes will be printed by the Government of India," PTI quoted the Reserve Bank of India as saying in a release.

"These currency notes are legal tender as provided in the Coinage Act 2011. The existing currency notes in this denomination in circulation will also continue to be a legal tender," it stated.

One Rupee Indian Currency

The new currency note will be predominantly pink green on obverse and reverse in combination with other colours, the RBI said.

Unlike other currency notes which the bear signature of RBI Governor, the one rupee note will have signature of the Finance Secretary.

In November 1994, printing of one rupee note was stopped mainly due to higher cost and for freeing capacity to print currency notes of higher denomination.

Printing of two and five rupee notes too were discontinued in 1995. Since then, only coins have been issued for these denominations. Older notes are still in circulation and remain legal tender.

Other paper currency notes currently being printed are Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1,000.