Banks advised to lower existing remittance charges

To improve remittances coming into the country, the government has advised banks to review existing charges on them.

"Banks have also been advised to review their existing scale of charges, both at the foreign and domestic end to minimise the current cost of remittances," Minister of State for Finance Namo Narain Meena said in a written reply in the Rajya Sabha yesterday.

Banks may also endeavour for improvements in infrastructure and extending the scope of electronic payment mechanism for inter-city settlement among the banks in India, so as to reduce the cost of non-resident Indian (NRI) remittances, he said.

Giving details of remittances to India, he said, India received $55.8 billion in 2010-11 as against $53.9 billion in 2009-10.

During 2008-09, the country received remittances to the tune of $46.9 billion.

The banks have also been advised to put in place an 'Awareness Programme' to sensitise NRIs on the options available to them in minimising the cost of remittances, he said, adding, this will make the costing more transparent.