The Hindu Business Line : Western Union upbeat on growth prospects

New Delhi March 13 Western Union, player in the private money transfer business, sees good growth prospects for its services next fiscal on the back of an expanding Indian remittance market.

Currently, India is the largest remittance market in the world, estimated at about $23 billion annually. Remittances into India exceed the cumulative foreign direct investment (FDI) as well as foreign institutional investment (FII) inflows into the country.

"The remittance market here is growing by about 20 per cent annually. We expect to not only maintain our leadership position (in private money transfer business), but also improve our share. Our growth will continue despite more competition", Mr Anil Kapur, Managing Director-South Asia, Western Union Services India Private Ltd, told Business Line here.

He said that the Indian remittance market stood at about $ 23.7 billion last year.

Locations

Mr Kapur highlighted that Western Union had seen tremendous growth in the last few years, with the total locations at which its services were offered growing from 3,000 in 2001 to 40,000 currently.

He also expressed hope that the Reserve Bank of India (RBI) would review some of the restrictions imposed on inward remittances through the money transfer companies. "We are in continuous engagement with the regulators on all issues", he said.

The RBI has stipulated that payout in cash to the beneficiary cannot exceed Rs 50,000 per transaction.