Remittance

A remittance is a transfer of money by a foreign worker to an individual in their home country. Money sent home by migrants competes with international aid as one of the largest financial inflows to developing countries. Workers' remittances are a significant part of international capital flows, especially with regard to labour-exporting countries.[1]

According to the World Bank, in 2018 overall global remittance grew 10% to US$689 billion, including US$528 billion to developing countries.[2] Overall global remittance is expected to grow 3.7% to US$ 715 billion in 2019, including US$549 billion to developing nations.[2]

Due to its large diaspora and overseas expats population, India consecutively remains the top receiver of remittance, e.g. with US$80 billion in 2018,[2] US$65.3 billion (2.7% of India's GDP) in 2017,[2] US$ 62.7 billion in 2016[2] and US$70 billion in 2014,[3] Other top recipients in 2018 were US$67 billion to China, US$34 billion each to Philippines and Mexico, US$26 billion to Egypt.[2]

Remittance advert Oxford Street London 20060909
Remittance advertising in Oxford Street, London with Polish and Russian

Global extent

Remittances are playing an increasingly large role in the economies of many countries. They contribute to economic growth and to the livelihoods of those countries. According to World Bank estimates, remittances will total US$585.1 billion in 2016, of which US$442 billion[4] went to developing countries that involved 250 million migrant workers.[5] For some individual recipient countries, remittances can be as high as a third of their GDP.[5]

International remittances have a major impact on the developing economies of the world with the majority of remittances, $441 billion in 2015, going to developing nations. This amount is nearly triple the $131 billion of global Official Development Assistance.[6] For many developing nations, remittances received make up a significant portion of their economies often receiving over 10% of their GDP in remittances each year.[6] Some countries, such as Tajikistan, receive over half of their national GDP in remittances.

Top recipient countries

Top recipient countries of remittances (in billions of US dollars)[7] [8]
Country Remittances 2012 Remittances 2013 Remittances 2014 Remittances 2015 Remittances 2016 Remittances 2017
 India 68.82 69.97 70.97 72.20 62.7 69
 China 57.99 59.49 61.49 63.90 61.0 64
 Philippines 24.61 26.70 27.90 29.80 29.9 33
 Mexico 23.37 23.02 24.50 25.70 28.5 31
 Nigeria 20.63 20.89 20.88 20.89 19.0 22
 Pakistan 14.01 14.63 17.80 20.10 19.8 20
 Egypt 19.24 17.83 19.83 20.40 16.6 20
 Vietnam 10.00 11.00 11.80 12.30 13.4 14
 Bangladesh 14.24 13.86 15.10 15.80 13.7 13

Note: The countries mentioned below are the largest 15 recipient countries of remittances only for the year 2013. World Bank data is used for all countries and years.

As a share of GDP, the top recipients of remittances in 2013 were Timor-Leste (16.6%), Tajikistan (42.1%), Kyrgyzstan (31.5%), Nepal (28.8%), Moldova (24.9%), Lesotho (24.4%), Samoa (23.8%), Haiti (21.1%), Armenia (21.0%), The Gambia (19.8%), Liberia (18.5%), Lebanon (17.0%), Honduras (16.9%), El Salvador (16.4%), Kosovo (16.1%), Jamaica (15.0%) and Bosnia and Herzegovina (8.82%, which is 1.540 billion $ for 2017 on 31 December 2017 conversion rate between € and US$).[7][9]

By region

The US has been the leading source of remittances globally in every year since 1983. Russia, Saudi Arabia, and Switzerland have been the next largest senders of remittances since 2007.[7]

Asia

A majority of the remittances have been directed to Asian countries like India (approx. 62.7 billion USD in 2016), China (approx. 61.0 billion USD in 2016), the Philippines (approx. 29.9 billion USD in 2016), Pakistan (19.8 billion USD in 2016) and more.[10]

Most of the remittances happen by the conventional channel of agents, like Western Union, Ria Money Transfer, MoneyGram, UAE Exchange, and similar. However, with the increasing relevance and reach of the Internet, online and mobile phone money transfers have grown significantly.[11]

India

Remittances to India are money transfers from non-resident Indians (NRIs) employed outside the country to family, friends or relatives residing in India. India is the world's leading receiver of remittances, claiming more than 12% of the world's remittances in 2015. Remittances to India stood at US$80 billion in 2018, accounting for over 2.8% of the country's GDP.

Jordan

The flow of remittances to Jordan experienced rapid growth during the 1970s and 1980s when Jordan started exporting skilled labour to the Persian Gulf. These remittances represent an important source of funding for many developing countries, including Jordan.[12] According to the World Bank data on remittances, with about 3 billion USD in 2010 Jordan ranked at 10th place among all developing countries. Jordan ranked among the top 20 recipients of remittances for the preceding decade. In addition, the Arab Monetary Fund (AMF) statistics in 2010 indicate that Jordan was the third biggest recipient of remittances among Arab countries after Egypt and Lebanon. The host countries that have absorbed most of the Jordanian expatriates are Saudi Arabia and the United Arab Emirates, where the available data indicate that about 90% of Jordanian migrants are working in the Persian Gulf.[13]

Philippines

M Lhuillier Shop
A common shop for remittance in Angeles City, Philippines.

According to a World Bank Study,[14] the Philippines is the second largest recipient for remittances in Asia. It was estimated in 1994 that migrants sent over US$2.6 billion back to the Philippines through formal banking systems. With the addition of money sent through private finance companies and return migrants, the 1994 total was closer to US$6 billion annually.[15]

The total is estimated to have grown by 7.8 per cent annually to reach US$21.3 billion in 2010. Remittances are a reliable source of revenue for the Philippines, accounting for 8.9 per cent of the country's GDP.[16]

The Estrada administration in 2000 declared it "The Year of Overseas Filipino Worker in the Recognition of the Determination and Supreme Self-Sacrifice of Overseas Filipino Workers." This declaration connects monetary remittances of overseas workers as the top foreign-exchange earnings in the Philippines.[15]

Latin America and the Caribbean

In Latin America and the Caribbean, remittances play an important role in the economy of the region, totaling over 66.5 billion USD in 2007, with about 75% originating in the United States. This total represents more than the sum of Foreign direct investment and official development aid combined. In seven Latin American and Caribbean countries, remittances even account for more than 10% of GDP and exceed the dollar flows of the largest export product in almost every country in the region.[17]

Percentages ranged from 2% in Mexico, to 18% in El Salvador, 21% in Honduras, and up to 30% in Haiti.[18] The Inter American Development Bank's Multilateral Investment Fund (IDB-MIF) has been the leading agency on regional remittance research.[17]

Mexico received remittance inflows of almost US$24 billion in 2007, 95% of which originated in the US.

North America

United States

A 2004 study found that over 60% of the 16.5 million Latin American-born adults who resided in the United States at the time of the survey regularly sent money home. The remittances sent by these 10 million immigrants were transmitted via more than 100 million individual transactions per year and amounted to an estimated $30 billion during 2004. Each transaction averaged about $150–$250, and, because these migrants tended to send smaller amounts more frequently than others, their remittances had a higher percentage of costs due to transfer fees.[19]

Migrants sent approximately 10% of their household incomes; these remittances made up a corresponding 50–80% of the household incomes for the recipients. Significant amounts of remittances were sent from 37 U.S. states, but six states were identified as the "traditional sending" states: New York (which led the group with 81% of its immigrants making regular remittances), California, Texas, Florida, Illinois, and New Jersey. The high growth rate of remittances to Mexico (not the total amount) is unlikely to continue. In fact, according to the Mexican central bank, remittances grew just 0.6 during the first six months of 2007, as compared to 23% during the same period in 2006. Experts attribute the slowdown to a contraction in the U.S. construction industry, tighter border controls, and a crackdown in the U.S. on illegal immigration.[14]

Remittance culture in the United States has contributed to the formation of "micro-geographies", tightly knit networks that integrate U.S. communities with communities throughout Latin America, such as migrants from Oaxaca, Mexico, who have settled in Venice Beach, California. Oaxacans not only send money back to their communities, but they also travel back and forth extensively.[14]

As of recently, remittances from the United States to Latin America have been on the decline. While there were USD 69.2 billion worth of remittances sent in 2008, that figure has fallen to $58.9 billion for 2011. This trend is a result of many factors including the global recession, more economic opportunity in Latin American countries, and rising fees charged by coyotes to smuggle immigrants across the border.[20]

The pattern of migration has changed from a circular flow, in which immigrants work in the United States for a few years before returning to their families in their home countries, to a one-way stream whereby migrants find themselves stuck in the United States. As a result, the new wave of migrants are both less likely to leave and more likely to stay in the United States for longer periods of time. Overall, this trend has contributed to falling levels of remittances sent to Latin American countries from the United States.[20]

Africa

Remittances to Africa play an important role to national economies. However, little data exists as many rely on informal channels to send money home. Immigrants from Africa today number approximately 20 to 30 million adults, who send around $40 billion USD annually to their families and local communities back home. For the region as a whole, this represents 50 percent more than net official development assistance (ODA) from all sources, and, for most countries, the amount also exceeds foreign direct investment (FDI). In several fragile states, remittances are estimated to exceed 50 percent of GDP.[21]

Most African countries restrict the payment of remittances to banks, which in turn, typically enter into exclusive arrangements with large money transfer companies, like Western Union or Money Gram, to operate on their behalf. This results in limited competition and limited access for consumers, which allows these Money Transfer Operators (MTOs) to charge the highest fees for remittances in the world.[22] However, there are a number of new players aiming to disrupt this established MTO model, such as Xoom and Willstream, which leverage increasing mobile phone penetration in the region and provide different rate structures to Diaspora customers.[23][24]

According to a World Bank study,[14] Nigeria is by far the top remittance recipient in Africa, accounting for $10 billion in 2010, a slight increase over the previous year ($9.6 billion). Other top recipients include Sudan ($3.2 billion), Kenya ($1.8 billion), Senegal ($1.2 billion), South Africa ($1.0 billion), Uganda ($0.8 billion), Lesotho ($0.5 billion), Ethiopia ($387 million), Mali ($385 million), and Togo ($302 million). As a share of Gross Domestic Product, the top recipients in 2009 were: Lesotho (25%), Togo (10%), Cape Verde (9%), Guinea-Bissau (9%), Senegal (9%), Gambia (8%), Liberia (6%), Sudan (6%), Nigeria (6%), and Kenya (5%).[25]

Nigeria

A major source of foreign-exchange earnings for Nigeria are remittances sent home by Nigerians living abroad.[26] In 2014, 17.5 million Nigerians lived in foreign countries, with the UK and the USA having more than 2 million Nigerians each.[26]

According to the International Organization for Migration, Nigeria witnessed a dramatic increase in remittances sent home from overseas Nigerians, going from USD 2.3 billion in 2004 to 17.9 billion in 2007, representing 6.7% of GDP. In 2016, remittances reached a new record of $35 billion.[27] The United States accounts for the largest portion of official remittances, followed by the United Kingdom, Italy, Canada, Spain and France. On the African continent, Egypt, Equatorial Guinea, Chad, Libya and South Africa are important source countries of remittance flows to Nigeria, while China is the biggest remittance-sending country in Asia.

An August 2016 Nigerian Central Bank (NCB) decision to suspend the operations of all MTOs in the country, except those of Western Union, MoneyGram and Rio,[28] was met with a strong backlash.[29] It was argued that the decision was not appropriately justified, while also standing in contrast to the NCB’s previous move to ban all exclusivity agreements with Western Union.[30] The decision was considered to disproportionally strengthen the dominant position of Western Union, MoneyGram and Rio.[31] Under pressure, however, the Central Bank reversed the decision and granted new licenses to a number of competing MTOs.[32]

Somalia

Somali expatriates often send remittances to their relatives in Greater Somalia through Dahabshiil and other Somali-owned money transfer companies. In order to ensure that these funds go to their intended recipients rather than Al-Shabaab and other militant groups, the governments of the United States, Australia, and a number of other Western countries tightened their banking requirements or stopped processing altogether the remittances.[33][34] To address the concerns, the United States Congress passed the Money Remittances Improvement Act of 2014.[33]

In April 2015, the Federal Cabinet of Somalia also officially launched the Special Task Force on Remittances (STFR). The multi-agency initiative is mandated with facilitating the Federal Government of Somalia's new national policy pertaining to the money transfer industry. Its main priority is centered on establishing a comprehensive strategy and a consultative implementation plan for the formalization of the local financial sector. Additionally, the STFR is tasked with helping to foster a business environment and financial infrastructure conducive to growth. It is also empowered to coordinate and speed up the endorsement of financial governance instruments and transparency associated legislation, such as the laws on Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT). In accordance with the Financial Action Task Force (FATF)'s recommendations, the STFR is in turn slated to oversee the Somali federal government's campaign to ratify various international treaties. The Task Forces' membership is scheduled to be announced shortly, and will be drawn from government institutions, the remittance industry, banks and other key private sector stakeholders.[35]

History

Overview

Remittances are not a new phenomenon in the world, being a normal concomitant to migration which has always been a part of human history. Several European countries, for example Spain, Italy and Ireland were heavily dependent on remittances received from their emigrants during the 19th and 20th centuries. In the case of Spain, remittances amounted to the 21% of all of its current account income in 1946.[36] All of those countries created policies on remittances developed after significant research efforts in the field. For instance, Italy was the first country in the world to enact a law to protect remittances in 1901[37] while Spain was the first country to sign an international treaty (with Argentina in 1960) to lower the cost of the remittances received.

Since 2000, remittances have increased sharply worldwide, having almost tripled to $529 billion in 2012. In 2012, migrants from India and China alone sent more than $130 billion to their home countries.[38]

In 2004 the G8 met at the Sea Island Summit and decided to take action to lower the costs for migrant workers who send money back to their friends and families in their country of origin. In light of this, various G8 government developmental organizations, such as the UK government's Department for International Development (DFID) and USAID began to look into ways in which the cost of remitting money could be lowered.

In September 2008, the World Bank established the first international database of remittance prices. The Remittance Prices Worldwide Database[39] provides data on sending and receiving remittances for over 200 "country corridors" worldwide. The "corridors" examined include remittance flows from 32 major sending countries to 89 receiving countries, which account for more than 60% of total remittances to developing countries.[40] The resulting publication of the Remittance Prices Worldwide Database serves four major purposes: benchmarking improvements, allowing comparisons across countries, supporting consumers’ choices, and putting pressure on service providers to improve their services.[40]

At the July 2009 summit in L'Aquila, Italy, G8 heads of government and states endorsed the objective of reducing the cost of remittance services by five percentage points in five years. To drive down costs, the World Bank has begun certifying regional and national databases that use a consistent methodology to compare the cost of sending remittances.[41]

At the G20 2011 Summit in Cannes, Bill Gates stated that, "If the transaction costs on remittances worldwide were cut from where they are today at around 10% to an average of 5%…it would unlock $15bn a year in poor countries."[42] A number of low-cost online services such as Azimo have emerged with the objective of lowering the cost of money transfers to developing and emerging economies.

Dynamics

Emergencies

During disasters or emergencies, remittances can be a vital source of income for people whose other forms of livelihood may have been destroyed by conflict or natural disaster. According to the Overseas Development Institute, this is being increasingly recognized as important by aid actors who are considering better ways of supporting people in emergency responses.[43] Refugees and other displaced populations also often remit to family members left behind in conflict areas.[44]

Potential security concerns

The recent internationally coordinated effort to stifle possible sources of money laundering and/or terrorist financing has increased the cost of sending remittances, directly increasing costs to the companies facilitating the sending, and indirectly increasing the costs to the person remitting. As in some corridors a sizable amount of remittances is sent through informal channels (family connections, traveling friends, local money lenders, etc.). According to the World Bank,[45] some countries do not report remittances data.

Moreover, when data is available, the methodologies used by countries for remittance data compilation are not publicly available. A 2010 world survey of central banks found significant differences in the quality of remittance data collection across countries: some central banks only used remittances data reported from commercial banks, neglecting to account for remittance flows via money transfer operators and post offices.[46]

Remittances can be difficult to track and potentially sensitive to money laundering (AML) and terror financing (CTF) concerns. Since 9/11 many governments and the Financial Action Task Force (FATF) have taken steps to address informal value transfer systems. This is done through nations' Financial Intelligence Units (FIUs). The principle legislative initiatives in this area are the USA PATRIOT Act, Title III in the United States and, in the EU, through a series of EU Money Laundering Directives. Though no serious terror risk should be associated with migrants sending money to their families, misuse of the financial system remains a serious government concern.

Economic benefits for developing countries

The extent to which remittances produce benefits for developing countries is argued.[47]

World Bank economists contend that remittance receivers' higher propensity to own a bank account means that remittances can promote access to financial services for the sender and recipient, claimed to be an essential aspect of leveraging remittances to promote economic development.[14] Meanwhile, critical migration scholars have expressed concern about the ability of remittances to address the structural causes of economic underdevelopment[48][49] and see an increasing policy emphasis on finance as symptomatic of a paradigmatic shift towards a 'self-help development' that burdens the poor.[50]

Remittances are generally thought to be counter-cyclical. The stability of remittance flows amidst financial crises and economic downturns make them a reliable source of foreign exchange earnings for developing countries.[14] As migrant remittances are sent cumulatively over the years and not only by new migrants, remittances are able to be persistent over time. This is particularly true of remittances sent by circular migrants, migrant workers who move back and forth between their home and host countries in a temporary and repetitive manner. At the state level, countries with diversified migration destinations are likely to have more sustainable remittance flows.[14]

From a macroeconomic perspective, there is no conclusive relationship between remittances and GDP growth.[51] While remittances can boost aggregate demand and thereby spur economic activity, other research indicates that remittances may also have adverse macroeconomic impacts by increasing income inequality and reducing labour supply among recipient countries.[52]

The World Bank and the Bank for International Settlements have developed international standards for remittance services.[53]

See also

References

  1. ^ Al-Assaf, Ghazi and Al-Malki, Abdullah M., (2014), Modelling the Macroeconomic Determinants of Workers’ Remittances: The Case of Jordan, International Journal of Economics and Financial Issues, Vol. 4, issue 3, p. 514-526.
  2. ^ a b c d e f India to retain top position in remittances with $80 billion: World Bank, Economic Times, 9 Dec 2018.
  3. ^ Capital Market (14 April 2015). "India receives top remittance of US$ 70 billion in 2014: World Bank". Business Standard India. Retrieved 16 June 2015.
  4. ^ "Trends in Remittances, 2016: A New Normal of Slow Growth". blogs.worldbank.org. 6 October 2016. Retrieved 31 October 2016.
  5. ^ a b "Remittances to Developing Countries Expected to Grow at Weak Pace in 2016 and Beyond". worldbank.org. 6 October 2016. Retrieved 31 October 2016.
  6. ^ a b "Understanding the Importance of Remittances". migrationpolicy.org. 2004-10-01. Retrieved 2017-05-03.
  7. ^ a b c "Prospects - Migration & Remittances Data". Archived from the original on 2018-06-15. Retrieved 1 April 2018.
  8. ^ "Remittances Data" (PDF). Retrieved 12 Jan 2016.
  9. ^ "Doznake iz inostranstva prošle godine 2,51 mlrd KM". Indikator.ba. Retrieved 19 April 2018.
  10. ^ "Top 5 remittance-receiving countries for 2016". TransferMate Blog. 13 June 2017.
  11. ^ "MIGRATION AND REMITTANCES 2016" (PDF). worldbank.org.
  12. ^ Al-Assaf, G. (2012), Workers' Remittances in Jordan, LAMBERT Academic Publishing, Germany.
  13. ^ Al-Assaf, G. and Al-Malki, A., (2014), Modelling the Macroeconomic Determinants of Workers’ Remittances: The Case of Jordan, International Journal of Economics and Financial Issues, Vol. 4, issue 3, p. 514-526.
  14. ^ a b c d e f g World Bank - Migration and Development Brief 13
  15. ^ a b Pratt, Geraldine. Working Feminism. p. 40.
  16. ^ Huang; Yeoh; Rahman. "Caring for the World: Filipino Domestic Workers Gone Global". Asian Women as Transnational Domestic Workers. Annals of the Association of American Geographers (Maruja ed.). pp. 21–53.
  17. ^ a b "IADB.org - Page not found (HTTP 404)".
  18. ^ Hawley, Chris (July 10, 2009). "With USA in a recession, rural Mexico feels the pain". USA Today. Retrieved October 12, 2009.
  19. ^ E. Carrasco & J. Ro (2007). "Remittances and Development" (ebook). University of Iowa Center for International Finance and Development.
  20. ^ a b "One-way Ticket or Circular Flow: Changing Stream of Remittances to Latin America".
  21. ^ "Remittances". Retrieved 16 June 2015.
  22. ^ Anderson, Mark (2014-08-18). "Global remittance industry choking billions out of developing world". The Guardian. ISSN 0261-3077. Retrieved 2017-08-17.
  23. ^ "THE DIGITAL REMITTANCE REPORT: The new platforms disrupting a $600 billion industry". Business Insider France (in French). Retrieved 2017-08-17.
  24. ^ "International Remittances through Branchless Banking" (PDF). UN Conference on Trade and Development.
  25. ^ "Sub-Saharan Africa posts growth in remittances". Retrieved 16 June 2015.
  26. ^ a b "Remittances from diaspora Nigerians as lubricant for the economy", Nigerian Tribune, 8 September 2014. Archived 17 March 2015 at the Wayback Machine
  27. ^ Agabi, Chris (2016-12-21). "Nigeria: Diaspora Remittance Hits U.S.$35 Billion in 2016". Daily Trust (Abuja). Retrieved 2017-08-17.
  28. ^ "Beware of Unregistered Money Transfer Operators" (PDF). Central Bank of Nigeria.
  29. ^ CNN, Jacopo Prisco and Heather Long. "Nigeria clamps down on money transfers". CNN. Retrieved 2017-08-17.
  30. ^ Allison, Ian (2016-08-02). "WorldRemit calls for urgent restoration of money transfers to Nigeria". International Business Times UK. Retrieved 2017-08-17.
  31. ^ "We need African countries to support our literature, says 2017's Caine prize winner". Quartz. Retrieved 2017-08-17.
  32. ^ Kazeem, Yomi. "Nigeria's Central Bank is backtracking on plans to ban operators disrupting remittances". Quartz. Retrieved 2017-08-17.
  33. ^ a b "Ellison and Paulsen Reintroduce Money Remittances Improvement Act To Help Somali Families Send Money Home". House Office of Keith Ellison. 6 May 2014. Retrieved 18 April 2015.
  34. ^ Armitage, Laura (30 March 2015). "Westpac to stop Somali money transfers on March 31". Herald Sun. Retrieved 18 April 2015.
  35. ^ "Somali Government Establishes Special Task Force on Remittances". Goobjoog. 7 April 2015. Retrieved 18 April 2015.
  36. ^ Remesas.org, Emigrantes construyendo escuelas: La primera política oficial de codesarrollo Archived 2016-04-04 at the Wayback Machine
  37. ^ "La primera Ley de remesas de la historia" (PDF). remesas.org (in Spanish).
  38. ^ "The incredicle rise of migrants' remittances". tageswoche.ch.
  39. ^ "Remittance Prices Worldwide - MAKING MARKETS MORE TRANSPARENT".
  40. ^ a b "Payment Systems & Remittances".
  41. ^ National and Regional Databases Certified by the World Bank Archived 2012-07-23 at the Wayback Machine
  42. ^ "G20 Report". Archived from the original on 2014-09-20.
  43. ^ "Remittances during crises: implication for humanitarian response".
  44. ^ Vargas-Silva, C. (2018). "Remittances Sent To and From the Forcibly Displaced". The Journal of Development Studies. 53 (11): 1835–1848. doi:10.1080/00220388.2016.1234040.CS1 maint: Uses authors parameter (link)
  45. ^ "Migration and Remittances Factbook 2011". Retrieved 16 June 2015.
  46. ^ Irving, Mohapatra, Ratha. "Migrant Remittance Flows: Findings from a Global Survey of Central Banks". World Bank Working Paper No.194. World Bank. Retrieved April 3, 2011.CS1 maint: Multiple names: authors list (link)
  47. ^ de Haas, Hein (2012-06-01). "The Migration and Development Pendulum: A Critical View on Research and Policy". International Migration. 50 (3): 8–25. doi:10.1111/j.1468-2435.2012.00755.x. ISSN 1468-2435.
  48. ^ Wise, Wise; Covarrubias, Humberto Márquez (2009-12-01). "Understanding the Relationship between Migration and Development: Toward a New Theoretical Approach". Social Analysis. 53 (3). doi:10.3167/sa.2009.530305. ISSN 1558-5727.
  49. ^ Abreu, Alexandre (2012-04-01). "The New Economics of Labor Migration: Beware of Neoclassicals Bearing Gifts". Forum for Social Economics. 41 (1): 46–67. doi:10.1007/s12143-010-9077-2. ISSN 0736-0932.
  50. ^ Rankin, Katharine N. (2001-01-01). "Governing development: neoliberalism, microcredit, and rational economic woman". Economy and Society. 30 (1): 18–37. CiteSeerX 10.1.1.202.6309. doi:10.1080/03085140020019070. ISSN 0308-5147.
  51. ^ Barajas, Adolfo; Chami, Ralph; Fullenkamp, Connel; Montiel, Peter (2009). "Do Workers' Remittances Promote Economic Growth?". IMF Working Paper Series.
  52. ^ Federal Reserve Bank of Dallas, Do Remittances Boost Economic Development? Evidence From Mexican States, October 2010
  53. ^ "Payment Systems & Remittances".

External links

Federal Bank

Federal Bank is a leading Private Sector, scheduled commercial bank in India, headquartered in Aluva, Kerala with a history of 70 years and a large network of over 1251 branches and over 1665 ATMs and 258 cash recyclers spread across the country. The Bank also has its Representative Offices abroad at Abu Dhabi and Dubai. With a strong customer base of 8 million loyal customers , including 1.2 million NRI customers and a large network of remittance partners across the world, Federal Bank handles more than 15% of India’s inward remittances. The Bank has got remittance arrangement with more than 110 Banks/Exchange Companies across the world. The Bank is also listed in BSE, NSE and London Stock Exchange and has a branch in India’s first International Financial Services Centre (IFSC) at GIFT City in Gujarat , which is akin to a foreign branch of the Bank.

Federal Bank is transforming itself, keeping its principles intact, into an organization that offers services beyond par. It has a well-defined vision for the future as a guidepost to its progress.

Federal Bank aims to be the ‘Most Admired Bank' which is Digitally enabled with a sharp focus on Micro, Medium and Middle market enterprises.

Hawala

Hawala or hewala (Arabic: حِوالة‎ ḥawāla, meaning transfer or sometimes trust), also known as havaleh in Persian, or hundi (हुण्डी huṇḍī) in Hindi or—in Somali, xawala or xawilaad—is a popular and informal value transfer system based not on the movement of cash, or on telegraph or computer network wire transfers between banks, but instead on the performance and honour of a huge network of money brokers (known as hawaladars). While hawaladars are spread throughout the world, they are primarily located in the Middle East, North Africa, the Horn of Africa, and the Indian subcontinent, operating outside of, or parallel to, traditional banking, financial channels, and remittance systems. Hawala follows Islamic traditions but its use is not limited to Muslims.

Indians in Bangladesh

There are hundreds of thousands of Indians in Bangladesh, most of whom are illegal migrants and refugees. According to data produced by the Bangladeshi Ministry of Home Affairs, as many as 500,000 Indians were staying in Bangladesh illegally in 2009. They were found working in different establishments such as NGOs, garments, textile, IT and sent money back home through hundi transfer systems.

Islami Bank Bangladesh Ltd

Islami Bank Bangladesh Ltd. (IBBL) (Bengali: ইসলামী ব্যাংক বাংলাদেশ লিমিটেড) is the pioneer of Islamic banking in Bangladesh. It became incorporated on 13 March 1983 as a public limited company under the Companies Act 1913. It has 36.91% local and 63.09% foreign shareholders. Up to Dec 2016, IBBL has 332 branches including 59 AD Branches & 03 Offshore Banking Units as well as has more than 13,500 staffs. In addition to that IBBL maintains its own 497 ATM Booths, 33 IDM (IBBL Deposit Machine) along with 6,000 shared ATM network across the country. IBBL mobilizes around 29% of the country remittance. In 2015, it serves US$3,903.21 million out of US$15,316.75 million of total country remittance. As such, IBBL is the largest private banking network in Bangladesh. When IBBL was established, it was the first bank in south-east asia to provide banking service based on Shariah. The bank is listed with both Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd.

Lock box

In banking, a lock box is a service offered by commercial banks to organizations that simplifies collection and processing of account receivables by having those organizations' customers' payments mailed directly to a location accessible by the bank.

Metrobank (Philippines)

The Metropolitan Bank and Trust Company (PSE: MBT), commonly known as Metrobank, is the second largest bank in the Philippines. It offers various financial services, from regular banking to insurance. It is the banking arm of tycoon George Ty.

Payoneer

Payoneer is a financial services company that provides online money transfer and digital payment services. Account holders can send and receive funds into their bank account, Payoneer e-wallet, or onto a re-loadable prepaid MasterCard debit card that can be used online or at points-of-sale. The company specializes in facilitating cross-border B2B payments. It provides cross-border transactions in more than 150 local currencies, with its cross border wire transfers, online payments, and refillable debit card services.Companies like Airbnb, Amazon, Google and Upwork use Payoneer to send mass payouts around the world. It is also used by eCommerce marketplaces such as Envato, and works with ad networks to connect these firms with publishers based outside of their headquartered country.In the content creation space, Payoneer works with a variety of companies and freelance marketplaces. The company is headquartered in New York City.

Purkot

Purkot is a village development committee in Tanahu District in the Gandaki Zone of central Nepal. At the time of the 2011 Nepal census it had a population of 7,188! among them 3,044(male) 4,144(female). This VDC is located on the highway called vanu highway(Dumre-besishahar) and has a small town called Baishjangar where Police station, health posts, schools and some other major facilities available.This village is somehow called as a transit for another neighboring districts Lamjung and Gorkha. Well famous river Marshyandi flows through this place. The village consists of various casts of people such as major Brahman Tamang-Gurung including, Newar, and Chettris etc. and equally celebrates their festivals each other.Purkot:The main income sources for the VDC is remittance as well Agriculture and small business.

ward number: 1-9

Baishjangar (ward no. 3/ 5) which is main city(bazar). Police station and school: ward no. 5 in Kharpani.

Purkot has some major high school in the town which are Shree Kalika multiple campus and Karmada secondary school. bRemittance send from middle east, Malysia USA, UK, Australia can easily get from Baisjangar, Tanahun. A bachelor level education has been already started in Kalika Multiple campus.

There is few holy place like Marshyangdi beni ghat sataal and Temples of five Hindu gods (Pancha Mandir) of Shiva, Bishnu, Krishna, Surya and Krishna Mandir is located aside Marsyangdi River coast at Baisjangar Tanahun. Marriage ceremony, Ekadasi Bratha, Purans are celebrated at this temple. A bus service to go Thanika than Temple is also available from Baishjangar.

Remittance Man (horse)

Remittance Man (foaled 13 April 1984) was an Irish-bred, British-trained Thoroughbred racehorse who competed under National Hunt rules. He was noted for his consistency, excellent jumping and nervous temperament. Between December 1988 and April 1990 he competed in hurdle races, and showed promise by winning two of his twelve races including the Grade 2 Bristol Novices' Hurdle and never finishing worse than third. When switched to compete in steeplechases he showed immediate improvement and won thirteen of his first fourteen races over fences. In his first season of steeplechasing his wins included the Noel Novices' Chase, Wayward Lad Novices' Chase, Galloway Braes Novices' Chase and Arkle Challenge Trophy. He had his greatest success in the 1991/1992 season when he won the Arlington Premier Chase, Queen Mother Champion Chase and Melling Chase. In the following autumn he won the Desert Orchid Chase and the Peterborough Chase but then sustained a serious tendon injury. He won his comeback race in February 1994 but was beaten in his three remaining races.

Remittance advice

Remittance advice is a letter sent by a customer to a supplier to inform the supplier that their invoice has been paid. If the customer is paying by cheque, the remittance advice often accompanies the cheque. The advice may consist of a literal letter (e.g., "To Whom it May Concern: Your shipment of the 10th inst was received in good order; accompanying is our remittance of $52.47 per invoice No 83046") or of a voucher attached to the side or top of the cheque.

Remittance advices are not mandatory, however they are seen as a courtesy because they help the accounts-receivable department to match invoices with payments. The remittance advice should therefore specify the invoice numbers for which payment is tendered.

In countries where cheques are still used, most companies' invoices are designed so that customers return a portion of the invoice, called a remittance advice, with their payment. In countries where wire transfer is the predominant payment method, invoices are commonly accompanied by standardised bank transfer order forms (like acceptgiros (in Dutch) (Netherlands) and Überweisungen (in German) (German)) which include a field into which the invoice or client number can be encoded, usually in a computer-readable way. The payer fills in his account details and hands the form to a clerk at, or mails it to, his bank, which will then transfer the money.

The employee who opens the incoming mail should initially compare the amount of cash received with the amount shown on the remittance advice. If the customer does not return a remittance advice, an employee prepares one. Like the cash register tape, the remittance advice serves as a record of cash initially received.

Modern systems will often scan a paper remittance advice into a computer system where data entry will be performed. Modern remittance advises can include dozens, or hundreds of invoice numbers, and other information.

Remittance advises (RAs) can be very complicated, especially in specialized fields like medical insurance payments.

Remittance man

A remittance man is a historic term for an emigrant, often from Britain to a colony, supported by regular payments from home, on the expectation that he stay away.

Note that in this context, money is being sent in the opposite direction to today's usual usage of the term remittance, which means money that migrants send to their countries of origin.

Remittances to India

Remittances to India are money transfers from non-resident Indians (NRIs) employed outside the country to family, friends or relatives residing in India. India is the world's leading receiver of remittances, claiming more than 12% of the world's remittances in 2015. Remittances to India stood at US$68.91 billion in 2015, accounting for over 4% of the country's GDP. As per the Ministry of Overseas Indian Affairs (MOIA), remittance is received from the approximately 35 million members of the Indian diaspora. India, while retaining its top spot as the world's largest remittance recipient, led the decline with remittance inflows amounting to $62.7 billion last year, a decrease of 8.9 per cent over $68.9 billion in 2015 A total of US$8.476 billion was made in remittances by foreign workers in India to their home countries.

Ripple (payment protocol)

Ripple is a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs Inc., a US-based technology company. Released in 2012, Ripple is built upon a distributed open source protocol, and supports tokens representing fiat currency, cryptocurrency, commodities, or other units of value such as frequent flier miles or mobile minutes. Ripple purports to enable "secure, instantly and nearly free global financial transactions of any size with no chargebacks."

The ledger employs the decentralized native cryptocurrency known as XRP, which as of September 2018 was the second largest coin by market capitalization. Ripple has been adopted by banks and payment networks as settlement infrastructure technology. Ripple relies on a common shared ledger, which is a distributed database storing information about all Ripple accounts. The network is "managed by a network of independent validating servers that constantly compare their transaction records." Servers could belong to anyone, including banks or market makers. Ripple validates accounts and balances instantly for payment transmission and delivers payment notification with very little latency (within a few seconds). Payments are irreversible, and there are no chargebacks.For its creation and development of the Ripple protocol (RTXP) and the Ripple payment/exchange network Ripple Labs was named as one of 2014's 50 Smartest Companies in the February 2014 edition of MIT Technology Review. A scientific study made by two researchers from Stanford and Stockholm University that studied the money production from an energy consumption point of view and a macroeconomic level stated that running a server on Ripple was comparable to the energy needs of running an email server.

State Bank of Pakistan

The State Bank of Pakistan (SBP) (Urdu: بینک دَولتِ پاکِستان‎) is the central bank of Pakistan. While its constitution, as originally laid down in the State Bank of Pakistan Order 1948, remained basically unchanged until January 1, 1974, when the bank was nationalized, the scope of its functions was considerably enlarged. The State Bank of Pakistan Act 1956, with subsequent amendments, forms the basis of its operations today. The headquarters are located in the financial capital of Pakistan, Karachi whereas the bank has a fully owned subsidiary with the name SBP Banking Services Corporation (SBP-BSC) which is the operational arm of the central bank and has branch offices in 15 cities across Pakistan, including the capital city, Islamabad and the four provincial capitals and has head office in Karachi. State bank has other fully owned subsidiaries as well namely, I) National Institute of Banking and Finance (NIBAF) which is the training arm of the bank and also provides training to commercial banks, 2) Deposit Protection Corporation (DPC) and recently SBP was given ownership of 3) Pakistan Security Printing Corporation (PSPC) as well.

The Remittance Man

The Remittance Man is an Australian melodrama film directed by W. J. Lincoln about a thief's reformation.

It was the third film from Lincoln-Cass Films.

It is considered a lost film.

Vicente Noble

Vicente Noble is a municipality in Barahona province in the Dominican Republic.

It is bordered on the north by Padre Las Casas municipality, Azua Province and Vallejuelo in San Juan Province; to the east by the Azua de Compostela municipality; to the south by the Jaquimeyes section in Barahona Province; and to the west by Tamayo municipality, Neiba municipality, and the Yaque del Sur River that acts as a limit for both these municipalities.

Vicente Noble was founded by two families from Azua de Compostela. The town was given various names until it was called Vicente Noble by President Rafael Trujillo in commemoration of the actions of General Vicente Noble in battles against the Haitians.

The Vicente Noble municipality is primarily agricultural. The crops of highest productivity are plantain, banana, coconut, tomatoes, pepper, eggplant, yucca, rice, beans, maize, "guandules" and sweet potato.

Thousands of emigrants from Vicente Noble now live in Spain and do domestic work. Their remittance of money constitutes an important source of income for the community.

Wandoor

Wandoor is a town in Malappuram district of Kerala, India at

11°11′44″N 76°14′09″E. It is located 20 km away from Manjeri

The town is growing due to the hundreds of NRIs and their remittance plays a major role in local trade and business. Many of the old buildings here are being replaced by modern complexes.

Withholding tax

A withholding tax, or a retention tax, is an income tax to be paid to the government by the payer of the income rather than by the recipient of the income. The tax is thus withheld or deducted from the income due to the recipient. In most jurisdictions, withholding tax applies to employment income. Many jurisdictions also require withholding tax on payments of interest or dividends. In most jurisdictions, there are additional withholding tax obligations if the recipient of the income is resident in a different jurisdiction, and in those circumstances withholding tax sometimes applies to royalties, rent or even the sale of real estate. Governments use withholding tax as a means to combat tax evasion, and sometimes impose additional withholding tax requirements if the recipient has been delinquent in filing tax returns, or in industries where tax evasion is perceived to be common.

Typically the withholding tax is treated as a payment on account of the recipient's final tax liability, when the withholding is made in advance. It may be refunded if it is determined, when a tax return is filed, that the recipient's tax liability to the government which received the withholding tax is less than the tax withheld, or additional tax may be due if it is determined that the recipient's tax liability is more than the withholding tax. In some cases the withholding tax is treated as discharging the recipient's tax liability, and no tax return or additional tax is required. Such withholding is known as final withholding.

The amount of withholding tax on income payments other than employment income is usually a fixed percentage. In the case of employment income the amount of withholding tax is often based on an estimate of the employee's final tax liability, determined either by the employee or by the government.

Xoom Corporation

Xoom Corporation, also Xoom, a PayPal Service is a electronic funds transfer or remittance provider that allows consumers to send money, pay bills and reload mobile phones from the United States and Canada to 131 countries. The company was founded in 2001, is based in San Francisco, CA, and has an office in Guatemala City, Guatemala. In November 2015, PayPal acquired Xoom Corporation for $25 a share in cash, or about $1.09 billion. Prior to that, Xoom was an independent publicly traded company and was initially backed by venture firms including Sequoia Capital, New Enterprise Associates, SVB Capital, and Fidelity Ventures.

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