Business & Investment

Domestic remittances increase when migrant workers return to work

Domestic remittances by migrant workers have also reached pre-Covid levels, in fact, even higher, according to paying players, as economic activity has returned to normal in most respects.

“Things are back to normal. There is a lot of activity in the market. People are back to work and continue to send money. The market continues to grow,” said Nipun Jain, CEO of RapiPay. increase.

The average ticket size for domestic monetary transactions has increased from around £ 3,000 before the pandemic to £ 3,500-3,600.

In addition, as remittances increased, so did cash withdrawals, Jane said.

India received a $ 87 billion remittance in 2021.The United States is the top source

The average cash withdrawn by RapiPay customers is now in the range of £ 3,000-3,100, compared to around £ 2,700 before Covid.

Similarly, Fino Payments Bank states that the domestic remittance market is growing.

Banks reported that domestic remittances achieved 58% of throughput in the first half of 2020-21 between April and September 2021.

Throughput for domestic remittances was 29,187 chlores in the first half of the year, compared to 40,683 chlores in 2020-21 and 23,492 chlores in 2019-20.

“Domestic remittances are back at about the same level,” said Rishi Gupta, Managing Director and CEO of Fino Payments Bank. BusinessLine In a recent interview.

Overseas remittances based on LRS increased by 31%

This trend is important given that the informal workforce was heavily affected by the pandemic and many workers returned home. The second wave of the pandemic has also led to health problems in rural areas.

Fino Payments Bank told DRHP that remittance transactions have recovered almost since the initial outbreak and blockade, but remain about 6% below normal domestic remittance throughput.

However, recent indicators such as GDP data and tax collection show that economic activity has normalized to pre-Covid levels.

Domestic remittances increase when migrant workers return to work Domestic remittances increase when migrant workers return to work

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