Indian expatriates have topped the charts worldwide for being the top remitters for the developing world, said the latest World Bank (WB) report.
According to the WB data released for 2013, amounts transferred by the migrant workers of India and the Philippines to their families and friends will hit $ 97 billion and the total transfers will increase.
The two countries, according to the report, will likely represent nearly a quarter of the remittance volumes to the developing world this year.
It estimated that money transfers to developing countries are likely to increase to $ 414 billion (6.3 per cent) this year and are expected to swell further to surpass the half-trillion mark by 2016.
HDFC Bank reportedly said that its remittance volumes increased by 30 per cent in June compared with January.
Remittances long have been a significant source of foreign exchange for India. In 2012, overseas Indians sent $69 billion home, up from $63 billion the year before, according to the World Bank, making the country the world’s largest recipient of inward remittances.
This increased cross border activity puts an additional requirement on money transfer to effectively handle government mandated identity verification requirements.
Verification of the identity of individuals who are transferring and receiving money flows is important to prevent fraud and reduce illegal money flows.
That money (read remittances) is important to the country’s economy, where imports far exceed exports and which runs a big current account deficit.
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