Remittances

The challenge is not reversal but recalibration: India must redesign its external strategy even as domestic engines stay strong

Union Minister for Communication Jyotiraditya M Scindia on Monday unveiled the UPIUPU Integration project here, described as a landmark initiative aimed at transforming cross-border remittances for millions worldwide. The initiative was launched at the 28th Universal Postal Congress. Developed by the Department of Posts (DoP), NPCI International Payments Limited (NIPL), and the Universal Postal Union (UPU), it integrates India's Unified Payments Interface (UPI) with the UPU Interconnection Platform (IP), combining the reach of the postal network with the speed and affordability of UPI. Addressing the event, Scindia called it more than a technology launch, but a social compact. The reliability of the postal network combined with the speed of UPI means families across borders can send money faster, safer and at much lower cost. It reaffirms that public infrastructure built for citizens can be linked across borders to serve humanity better, he said. He outlined India's vision for a .

According to RBI data, the amount remitted under LRS was up 0.5 per cent year-on-year (Y-o-Y) from $6.88 billion recorded in Q1 FY25

April 2025 outward remittances under the RBI's LRS rose 8.6 per cent YoY to $2.5 billion, but full-year outflows fell by 6.85 per cent amid global uncertainty and high base

The remittance tax risks reviving hawala networks, making it easier to fund drug and human smuggling, as criminal syndicates step in to exploit informal money transfer systems once again

The original version of US President Donald Trump's "One Big Beautiful Bill" included a 5 per cent excise duty on outward remittances

RBI data shows LRS outflows dropped to $29.56 billion in FY25 due to weak income growth, rupee depreciation, and lower transfers for education and close relatives

A provision in Trump's new 'Beautiful Bill' suggests a 5% excise tax on all outward remittances by non-US citizens, raising the cost of transfers to countries like India

A proposed 5 per cent US tax on remittances sent abroad by non-citizens is raising alarm in India as it may hit Indian households and the rupee, economic think tank GTRI said on Sunday. The provision is part of a broader legislative package titled 'The One Big Beautiful Bill' introduced in the US House of Representatives on May 12. It targets international money transfers made by non-US citizens, including green card holders and temporary visa workers like those on H-1B or H-2A visas. The proposed levy will not be applicable to US citizens. "The proposed US tax on remittances sent abroad by non-citizens is raising alarm in India, which stands to lose billions in annual foreign currency inflows if the plan becomes law," the Global Trade Research Initiative (GTRI) said. For India, the stakes are high as the country received USD 120 billion in remittances in 2023-24, with nearly 28 per cent originating from the US, it added. "A 5 per cent tax could significantly raise the cost of sen

Rajagopalan answers SME queries related to GST, export and import matters

Advanced economies such as the US, the UK, Singapore, Canada, and Australia together accounted for more than half of India's remittances in FY24, reflecting a shift in migration patterns

The Gulf Cooperation Council (GCC) countries-UAE, Saudi Arabia, Kuwait, Qatar, Oman, and Bahrain-together contributed 38 per cent to total remittances received by India in 2023-24

Indian migrants in the Gulf Cooperation Council (GCC) countries account for around half of the total Indian migrants in the world

The revision, which will be effective from April 1, 2025, is expected to boost travel and foreign exchange segments, provide additional benefits to students, and improve tax compliance

The growth rate of remittances this year is estimated to be 5.8 per cent, compared to 1.2 per cent registered in 2023

Maintain detailed records of foreign remittances, including purpose, amount, and beneficiary details

Major lenders like ICICI Bank Ltd. and State Bank of India have dominated the outbound remittance market in India

The RBI has only put up the draft directions on exports and imports of goods and services for public response. The directions would be finalised only after receiving feedback from stakeholders

India received remittances worth $120 billion in 2023, supported by strong labour markets in the United States and Europe

According to a survey by the Reserve Bank of India on post-Covid-19 remittances, the United States emerges as the primary contributor, constituting 23% of the total amount