MUMBAI: India is the largest recipient of remittances by its diaspora across the world with annual inflows of over $20 billion for almost four years now. But a chunk of this money is not new money sent by migrant Indians. Almost half the money is conversion of NRI deposits into the accounts of their relatives back home. But this year there is a slight shift in the pattern with NRIs opting for direct remittances, instead of parking them in deposits.
Remittances are reflected in `private transfers’ in the balance of payments. It comprises remittances for family maintenance, local withdrawals from Non-Resident Rupee Account, gold and silver brought through passenger baggage, and personal gifts/donations to charitable/religious institutions.
According to the latest data analysed by the RBI, of the total remittances (private transfers) amounting to $19 billion during April-September’07, $8.3 billion was local withdrawals of NRI deposits. While $9.4billion was on account of inward remittance for family maintenance.
The share of this component which contributed a significant share of remittance flow to India at about 60% in 1999-2000 dipped to 47% in 2006-07. In the first half of 2007-08, however, the share of inward remittances was about 50% of total remittance flow to India.
Remittances are reflected in `private transfers’ in the balance of payments. It comprises remittances for family maintenance, local withdrawals from Non-Resident Rupee Account, gold and silver brought through passenger baggage, and personal gifts/donations to charitable/religious institutions.
According to the latest data analysed by the RBI, of the total remittances (private transfers) amounting to $19 billion during April-September’07, $8.3 billion was local withdrawals of NRI deposits. While $9.4billion was on account of inward remittance for family maintenance.
The share of this component which contributed a significant share of remittance flow to India at about 60% in 1999-2000 dipped to 47% in 2006-07. In the first half of 2007-08, however, the share of inward remittances was about 50% of total remittance flow to India.
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