RBI seeks low remittance cost
India pressing for adoption of open and inter-operable payment systems like UPI, among WTO members to cut cost of money transfers
New Delhi: Senior officials of the RBI and the National Payments Corporation of India (NPCI) have made a presentation to the WTO members on reducing cost of remittances on March 25, an official said.
India is pressing for the adoption of open and inter-operable payment systems like UPI, among WTO (World Trade Organisation) members with a view to cut the cost of money transfers or remittances. To cut the cost, India is suggesting to encourage digital transfers, fostering inter-operable systems, promoting competition, streamlining regulations, and enhancing pricing transparency. A proposal in this regard was pushed by India in the 13th ministerial conference, which was held in February in Abu Dhabi.
“We had requested to make a presentation on the cost of remittances. The RBI and the NPCI gave presentations online on March 25. The meetings will continue on the subject at Geneva,” the official said. The remittance costs are about 6.18 per cent globally which is well above the United Nation’s target of three per cent. “Remittances are a major component in balance of payment and it is an important source of income,” the official said.
