NRI remittances to touch $8.5bn by end-Dec 2013

Strong festive season demand, RBI measures, rupee fall lead to spurt in volumes and transaction sizes

October 31, 2013 1:05 IST | India Infoline News Service
UAE Exchange, the leading global remittance and foreign exchange brand, said that global remittance flows have witnessed a sharp surge in September this year and the ongoing festive season is expected to boost flows even further, setting a new record for the year 2013.

Remittances by non-resident Indians have seen a sharp spike of 27% between January and September 2013, as compared to 7% growth during the same period last year, reaching a new high of over USD 6.5 billion, the highest quantum since 2008.

Abu Dhabi-based UAE Exchange manages 10% of the total remittance market in India and 6% of total remittance flows, globally.

Non-resident Indians across the globe celebrate Eid and Onam festivals in September and October months. They will be celebrating Diwali in November. The same expatriate community, along with the predominantly Roman Catholic Filipinos in the UAE, will also celebrate Christmas and New Year in December and January.

The RBI’s special window to attract NRI dollar deposit flows into India, valid till November 30, 2013 has also driven high volume foreign currency remittance transactions.

The strengthening of the US dollar against most other currencies, particularly the Indian rupee has also been another key driver for increased remittance flows.
Most NRIs also choose to remit money into the country for gifting purposes during the festive season, apart from purchase of gold and other investment options including fixed deposits and real estate.

On the occasion, Mr. Promoth Manghat, Vice President - Global Operations, UAE Exchange, said, “We have seen a sharp spike in remittances as expatriates took advantage of record low levels on the rupee. The current ongoing festive season will also add at least 10-12% to the spurt in global transaction volumes to India, which we expect to touch a record USD 8.5 billion in 2013. This will increase our market share further to 12% of the total remittance volume of USD 71 billion, into the country, as estimated by the World Bank”

Average transaction volumes have risen by about 27% this year and average transaction size has risen by 7% to USD 830 as compared to USD 775 in 2012.
Remittances in the state of Kerala have already crossed their annual remittance target within the first six months of the year itself, recording inflows of over 75000 crore rupees.

Kerala contributes the largest share of total remittance flows for UAE Exchange, with a share of 33% to total volumes. Other top markets include Tamil Nadu (13% share), Punjab (6% share), Andhra Pradesh (6% share) and Uttar Pradesh (4% share).

UAE Exchange currently has the largest global network of branches, among remittance brands, with 700 outlets in 30 countries. It has aggressive plans to take that number to 1000 in the next three years.

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