Remittance: India tops the world

Indians are the world's top remitters.

 

Remittance is defined as the sum of money paid to someone at a distance. A 'remittance transfer' refers to the transfer of money from an individual, usually a person who has emigrated from her city or country of origin, to another individual, usually a relative who remains at home.

 

Remittance transfers are typically person-to-person payments and of low monetary value. There are two basic categories of remittance transfers: domestic and international.

 

Domestic remittance transfers occur when an individual transfers funds from one location to another within the same country. Remittances play a vital role in the economies of many countries, contributing to growth.

 

The World Bank and the Bank for International Settlements have developed international standards for remittance services.

 

India received a whopping $27 billion in remittances, beating China and Mexico to become the top country for such inflows, the World Bank has said in its latest report.

 

The inward remittances to India has more than doubled from about $12.89 billion in 2000 to $27 billion in 2007.

 

In 2006, inward remittances were $25.43 billion, while the outward flow constituted around $1.58 billion.

 

The top five recipients of remittances in 2007 were India ($27 billion), China ($25.7 billion), Mexico ($25 billion), the Philippines ($17 billion), and France ($12.5 billion), according to the report, titled Migration and Remittances Factbook 2008.