Economy

Remittances climb back to clock 40 per cent of pre-lockdown levels: study

Our Bureau Mumbai | Updated on June 09, 2020

With the advent of Unlock 1.0 from the beginning of this month, the remittances have climbed back to clock 40 per cent of the total pre-lockdown levels, according to a study by fintech company Eko India.

This is expected to cross the 50 per cent mark by the end of June. The remittance data also reflects the speed at which the country’s economy is bouncing back and the rate at which the migrant working populace is reclaiming income levels and jobs , it said.

A clear drop was observed in the remittances (money transfer to bank accounts) by the migrant working population from urban to rural India; which were recorded at a meagre 35 per cent of the total transactions recorded in the period before the lockdown.

The data also underlines a nationwide trend. Remittances from across urban nodes have been impacted - Delhi is down 80 per cent; Mumbai 95 per cent; Chandigarh 88 per cent; Bengaluru 83 per cent and Surat 95 per cent.

About 87 per cent of India’s migrant workers have meagre, small or zero landholdings to sustain themselves. Employment opportunities back home are negligible, and the absence of any form of ‘safety-net’ makes the situation even more precarious resulting in these families being heavily reliant on the remittances sent by their family members working in the cities.

The mass migration which has recently been witnessed will be corrected only with the discovery or invention of a cure for the current pandemic. However, a gentle push in the right direction can help both individuals and institutions across the board in the country.

Eko India Financial Services is a fintech company serving over three crore low to moderate-income migrant workers in India.

Published on June 09, 2020

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