At WTO, India proposes lower cost of cross-border payments
India has proposed a work programme at the World Trade Organization (WTO) aimed at reducing the cost of cross-border remittances to promote international trade. The proposal emphasizes the importance of promoting interoperability and interlinkages of digital payment infrastructures to achieve cheaper, faster, and more transparent cross-border payments, including remittances. Key Points
Economic Timesremittances to Mexico hit record, but strong peso softens impact
Mexico brought in close to $5.7 billion in remittances in May, central bank data showed on Monday, breaking a monthly record that analysts cautioned was softened by the recent strength of the peso versus the dollar. Key Points
ReutersTracing the shifting patterns of remittance flows
Remittances have shored up India’s current account in the last two decades. Will this be the case in the future?.Remittances by Indians working abroad to families in India may have crossed $100 billion in 2022-23. Indians sending money overseas hit a record high as well—$27.1 billion under LRS. Key Points
mintIndia again received world's highest remittances in 2023, double that of China, finds report
India is expected to get $125 billion in 2023, up from 2022’s $111 billion. This inflow has caused South Asia’s share as a whole to rise, says the World Bank. Key Points
ThePrintHow NRI money is bolstering India's economy
Indian inward remittances have reached an all-time high of $107.5bn during 2022, according to RBI Governor Shaktikanta Das. The remittances have surpassed World Bank projections by $7.5bn, providing a macroeconomic cushion for India's external sector, adding to its foreign exchange reserves, fuelling investment and consumption, and helping strengthen the rupee's value. Key Points
Economic Times
LRS outflows fall sharply in October after TCS regime takes effect
Remittances down 37% over September; shift to credit-card spending for international travel likely. In October, outward remittances under the liberalised remittances scheme, or LRS, fell 37% to $2.1 billion from $3.5 billion in September. Key Points
Economic TimesPaying a price for sending money: The global impact of remittance fees and solutions
Barada Talukdar, a Kuwaiti mud specialist, uses Al Mulla Exchange to send money to his family and friends in Kuwait. However, the exchange rate fluctuations and commissions can be confusing for blue-collar workers like his cook. At the World Trade Organisation's ministerial conference (MC13) in Abu Dhabi, New Delhi discussed the issue of exorbitant fees for crossborder remittances. About 20 nations from Asia, Latin America, and Africa had spoken in favor of India's proposal to cut the cost of remittances. Key Points
Economic TimesInterim Budget seals India's plan for higher taxes on your foreign holidays
The Interim Budget 2024 includes the inclusion of increased Tax Collected at Source (TCS) rates on foreign remittances into the Income Tax Act as an amendment. The adjustment is awaiting parliamentary approval and will affect foreign expenditures exceeding Rs 7 lakh annually per individual. Key Points
Economic TimesCross-border remittances using e-rupee to halve cost of such payments to 2-3 pc: DEA Secy Ajay Seth
Central Bank Digital Currency (CBDC), or e-rupee, can help reduce the cost of cross-border remittances by 2-3%, according to an official. The Central Bank Digital Currency (CBDC) is a digital token that represents legal tender and is issued in the same denominations as paper currency and coins. Key Points
Economic TimesOffshores online gaming companies: ED raids 25 locations, remittance to the tune of Rs 4,000 crore under s
Remittance to the tune of Rs. 4000 crore allegedly made in the guise of payments for import of goods and services is under scanner. Rs. 19.55 lacs in cash, US$2695 and 55 bank accounts of firms being used for layering and remitting income generated from online gaming in the guise of remittances against import of goods and services have also been frozen, the agency said in a statement on Tuesday. Key Points
Economic Times
Sharp slide in India’s remittance inflows on OECD slowdown
In 2022, India posted an over 24 per cent growth in its inward remittances to reach $111 billion, higher than the World Bank’s earlier estimate of $100 billion. This represented 63 per cent of South Asia’s remittance flows, which grew by over 12 per cent in 2022 to reach $176 billion. Key Points
The Indian ExpressOutward remittances by Indians in November fall to lowest level since February 2022
India Business News: Outward remittances by Indians in November fell to the lowest level since February 2022 due to increased tax collection at source and the introduction of the Liberalised Remittance Scheme. The decline was seen in spending on foreign travel, studies abroad, and equity investment abroad. Key Points
Times Of IndiaCurrent account deficit manageable: RBI Governor Das
Indias services exports continued to grow at a healthy pace in the first two months of 2023. “Better growth prospects of the gulf cooperation council (GCC) countries are expected to keep remittances robust” RBI governor Das said. Inward remittances which is major source of strong positive flows in the current account- touched an all-time high of $ 107.5 billion during calendar year 2022. Key Points
Economic TimesWhat can countries with high transaction cost on remittance do? Adopt an Indian method
The high transaction cost on remittances amounts to an additional tax on cross-border movement of incomes. For 2023, roughly $41 billion was spent on just transaction costs. Key Points
ThePrintNPCI chief says basic UPI services will remain free
The basic services of UPI will continue to remain free. Work is on with the government for incentives, he told reporters. But the value-added services of UPI, where the ecosystem needs some incentives to drive the adoption - whether it is mandate and credit - that's how the benefits will be accrued and the larger benefits for merchants and consumers would come from that. Key Points
Economic Times
Understanding the nuances of the recent amendments in TCS provisions
The Union budget 2023 has increased the TCS rate on foreign remittances made under LRS from the existing 5% to 20%, w.e.f. 1 July. Key Points
mintTravel agents' association urges govt to abolish implementation of TCS scheduled for Oct 1
The Travel Agents Association of India (TAAI) has appealed to the Indian government to abolish or defer the implementation of the new Tax Collection at Source (TCS) on foreign remittances until the next fiscal year. The TCS, which has been raised from 5% to 20% on foreign remittances under the Liberalised Remittance Scheme, will be applicable to international travel and other remittances. Key Points
Economic Times