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PM Modi seeks G20 deadline to lower cost of remittances

Prime Minister Narendra Modi today sought a definite timeline before 2030 for reduction in cost of transferring money, a move that will help India as it is the world’s largest recipient of remittances.

“Remittances are a key source of income for households and support for the economy in developing countries. We should define a target date before 2030 to reduce the high costs of transferring remittances,” he said said in his intervention at G20 Working Lunch on Development and Climate Change here.

With about USD 70 billion in remittances in 2013, India is the largest recipient of officially recorded remittances in the world.

India has been pushing for global efforts to bring down transaction cost for remittances.

The transaction cost has already come down to 7.5 per cent because of a sustained campaign by India, from 10 per cent earlier.

The target is to bring it down to 3 per cent by 2030, NITI Aayog Vice Chairman and G20 Sherpa Arvind Panagariya had told reporters in New Delhi last week.