Salary pay­ment de­lays, eco­nomic slow­down hit re­mit­tance busi­ness

More re­mit­ters us­ing mo­bile bank­ing apps to trans­fer money

Muscat Daily - - FRONT PAGE - Our Cor­re­spon­dent Mus­cat

Up­take of tech­nol­ogy and the cur­rent eco­nomic slow­down have im­pacted the busi­ness of ex­change houses in the coun­try. Ex­change houses say that most banks are also of­fer­ing re­mit­tance ser­vice through mo­bile apps at a lower rate lead­ing to an over­all de­cline in the busi­ness.

Speak­ing about the is­sue, a se­nior of­fi­cial from Global Money Ex­change, said, “There has been a drop of nearly 35 per cent in peo­ple re­mit­ting money com­pared to the same pe­riod last year. De­lay in pay­ment of salaries by many com­pa­nies as

well as the chal­leng­ing fi­nan­cial sit­u­a­tion are the key rea­sons be­hind this fall. Also, many ex­pats are re­mit­ting money through mo­bile bank­ing apps.”

An of­fi­cial from the Oman UAE Ex­change said that like many sec­tors ex­change houses are also strug­gling. “The present sit­u­a­tion is re­ally chal­leng­ing. Most of the re­mit­tance houses are suf­fer­ing for the last few months be­cause of the over­all fi­nan­cial sit­u­a­tion in the re­gion.”

P K Subudhi, the gen­eral man­ager of Mustafa Sul­tan Ex­change, said that de­lay in salary pay­ments along with other fac­tors have af­fected the ex­change houses. “The In­dian ru­pee has ap­pre­ci­ated vis-a-vis rial in the last few months. So, this too has af­fected the busi­ness. Over­all re­mit­tance busi­ness has been hit in the last few months com­pared to the same pe­riod in ear­lier years.”

Subudhi said that lower re­mit­tance charges of­fered by banks have con­trib­uted to the over­all de­cline.

(Mus­cat Daily)

Pho­to­graph for il­lus­tra­tive pur­pose only

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