Key Points
India has proposed a work programme at the World Trade Organization (WTO) to lower the cost of cross-border remittances for promoting international trade...
In a submission made on Tuesday, New Delhi said one of the means to achieve cheaper, faster and more transparent and accessible cross-border payments including remittances is "promoting interoperability and interlinkages of digital payment infrastructures including fast payment systems"...
Lower transaction costs are key to reducing inequality within and among countries such as India since the global average cost for sending remittances is 6.18%, more than twice the SDG target..
As per the submission, the global average cost for digital remittances at 4.84% is significantly lower than the cost for non-digital remittances and that out of total remittances of $860 billion in 2023, around 78% or $669 billion went to low- and middle-income countries..
The work programme should review the cost of cross-border remittances, trends and developments, and consider how technology, emergence of new market players, different types of providers and new channels, and consumer behaviour are impacting the cross-border remittance services, New Delhi said in its submission to the WTO...
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