New Delhi, Sep 9: Reducing the cost of sending money to India could save Indian migrant workers around $5 billion, allowing more of their earnings to reach their families.

India receives a large amount of money from Indians working abroad. However, a part of these earnings is spent on transfer charges and other costs. Lowering these charges could provide direct financial relief to migrant workers and their families.

For many households, remittances are an important source of income. The money is used for everyday expenses, education, healthcare, housing and other family needs. Lower transfer costs would mean that families receive more money from the same amount sent from abroad.

The move could also support the growth of digital payments and financial technology services in India. Banks and fintech companies can play a larger role in providing faster, simpler and more affordable international money transfer services.

India’s expanding digital payments infrastructure provides an opportunity to improve cross-border transactions. Better connectivity between payment systems can make sending money home easier and reduce the cost of international transfers.

Cheaper remittances could also encourage more people to use formal digital channels for sending money. This can improve transparency and provide greater access to financial services for migrant workers and their families.

The benefit is not limited to individual households. More money reaching families can support consumption, savings and small investments, while the growth of digital remittance services can create new opportunities for the financial services sector.

Reducing remittance costs can therefore provide a simple but meaningful benefit for Indians working abroad. Lower charges mean more of their hard-earned money reaches their families in India, strengthening household finances and supporting the wider economy.