India has continued to be the world’s biggest receiver for remittance of $68.9 billion in 2015 as per World Bank. It’s being contributing to India’s GDP more than 10 percent. India’s new-age banks which have the potential to introduce disruptive technologies to reduce the remittance costs, these are payment banks and initiatives such as Digital India and Start-up India. These services may not extend for its overseas remittance transactions given regulations, foreign exchange control, Anti-Money Laundering requirements.
Where in South Asia, remittances have gone up by 2 percent in 2015 which was 4.3 percent in the last year 2014. This is mainly due to a contraction flows to India as per reports. Other countries of South Asia such as Bangladesh, Srilanka and Pakistan had a fall in the remittance. Due to the earthquake in Nepal, remittances had an increase by 20.9 percent in 2015 which was just 3.2 percent in the year 2014.
Now moving to the developing countries in the World, South Asia had the lowest rate of remittance. The fourth quarter of 2015 was 5.4 percent, which was 5.9 percent in the same quarter in the year 2014 which has been the calculated cost to send $200 to regional countries. South Asia is expected to bring an increase in the remittance of $123.3 billion in the next year which was $117.9 billion in the year 2015.