Salary payment delays, economic slowdown hit remittance business
More remitters using mobile banking apps to transfer money
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.
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