Weak Rupee Value Boosts NRI Remittance


This was primarily due to the weak rupee and healthy economic activity in the Gulf Co-operation Council countries, which are the prime destinations of recent migrants.

“We witness the biggest remittance season from the U.S. during Diwali. But if the rupee-dollar exchange rate is very attractive, it is another Diwali,” says Daniel Ayala, Executive Vice President in-charge of remittance services at Wells Fargo, as quoted by TNN.

India continues to top the list of migrant remittances recipients with $63.6 billion remittances in 2011.

Ayala adds that Wells Fargo remits “hundreds of millions” of dollars to India. In 2011, this figure has increased by 30 percent.

Another reason why NRIs are remitting more is because of rising interest rates. "The FCNR rate for NRI deposits has increased by 125 basis points effective from November 2011, thus encouraging NRIs to open deposits in India. We estimate that the remittance flows into India have gone up 20-25 percent as compared to the same period last year," said Avijit Nanda, President – TimesofMoney, as quoted by TNN.