New Delhi, PTI
A presentation on reducing the cost of remittances was given to WTO members on March 25 by senior officials from the RBI and NPCI, as stated by an official. India is urging WTO members to adopt open and interoperable payment systems like UPI to lower transfer costs.
The proposal, initially presented at the 13th ministerial conference in February, aims to promote digital transfers, enhance competition, streamline regulations, and improve pricing transparency. The global remittance cost stands at 6.18%, exceeding the UN target of 3%.
India emphasizes the significance of remittances, particularly for expatriates and the country’s balance of payments. It highlights the efficiency of digital infrastructure like UPI in facilitating cheap and easy payments. The demand is for fair charges, with opposition from countries like the US and Switzerland due to their significant earnings from remittance charges.
Despite support from many WTO members, further examination is required. The draft ministerial declaration emphasizes the need to reduce remittance costs, aiming to achieve the UN SDG of less than 3% transaction costs by 2030. The WTO instructs a work program to understand the impact, review costs, and examine drivers and challenges associated with reducing remittance costs.
