The NRE deposit in banks in the state is over Rs 1 lakh crore as on June 30, 2015
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KOCHI: The growth in remittance flows to developing countries will remain muted in 2015 due to weak economies in Europe, lower oil prices and weaker currencies verses US dollar, says a brief on Migration and Development by the World Bank.
“The remittances to developing countries are expected to reach 435 billion in 2015, registering a modest growth of two per cent,” the brief released a few days ago said.
Although India is projected to be the largest receiver of remittances, the WB brief is expected to have an impact on the economy of Kerala which depends heavily on remittances from Keralites working in Gulf countries.
The “lower oil prices are further restricting the ability of many migrants to send money back to their families and friends,” the brief mentioned.
It is a timely warning to the people in Kerala to be vigilant on their spending patterns, said a banking source in the state. The trend in remittances flow to the state will be clear only after examining the relevant data by the Reserve Bank of India, he said.
“The banks in the state only have deposits of non-resident Indians. The NRE deposit is only one form of remittances flow,” said an official in the State- Level Bankers Committee.
Weak oil prices have the potential to hit remittances to the state, said noted economist Dr K.K. George.
“If Indian currency remains weak, it will provide a cushioning impact on the fall in overall remittance,” he said.
The NRE deposit in banks in the state is over Rs 1 lakh crore as on June 30, 2015. According to SLBC report in June, the NRE deposit in the state is '117,34,977 as against Rs 109,60,395 in December.
( Source : deccan chronicle )
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