The year 2005-06 saw an increase of 25% in NRI
remittances over the previous year, taking the figure up to USD 25
billion, according to a Reserve Bank of India survey .The remittances
were channelised as follows:
NRI Remittances in 2006
|Investment in Stocks and Shares
||USD 3.25 billion
|Funds in NRI Bank Deposits
||USD 5 billion
|To Meet Family Expenses
||USD 13.5 billion
The survey was conducted by the Reserve Bank in 2006 on the foreign exchange
transactions of bank branches in Ahmedabad, Bangalore, Chandigarh, Chennai, Puducherry,
Delhi, Hyderabad, Jaipur, Kolkata, Mumbai and Kochi. These cities were selected
primarily on the basis of the quantum of NRI remittances received, and the channelising
of these to interior locations. The following facts came to light:
- USA and Canada account for 44% of the remittances, while 32% comes from the Gulf.
- North America as a remittance source has gained over the Gulf with the growing number of professionals in IT.
- The average size of the remittance was around USD 1,100 and more.
- The preferred mode of remittance is the electronic transfer like Swift, in spite of the higher costs involved.
- NRIs chose to spend a higher fee to remit funds to save on time.