Foreign funds Current Affairs - 2020

June 16: International Day of Family Remittances

Every year, the International Day of Family Remittances is observed on June 16 by the United Nations. The day is observed all over the world. This year the day is celebrated under the theme

Theme: Remittances are a lifeline

Highlights

The day is celebrated to recognize the efforts of migrants living abroad and help improve the lives of their family members in their home countries.

The first International Day of Family Remittances was celebrated in 2015. The day encourages the public sector and private sector countries to make policies for the betterment of migrants and encourage remittances.

What is Remittance?

The transfer of money by a foreign worker to his or her family in their home country is called remittance. It is highly important as it is one of the largest financial inflows for the developing countries

Remittances of India

According to the World Bank, the remittances of India are expected to fall by 23% in 2020 due to COVID-19 crisis. The remittances of India were 83 billion USD in 2019. Around 17.5 million Indians are living abroad. Majority of them are in the gulf region, US, Western Europe and Canada.

World Remittances

The World Bank has projected that the global remittances for the year 2020 is to reduce to around 20% due to COVID-19 crisis. According to World Bank, the remittances are to fall to 445 billion USD this year as compared to 554 billion USD in 2019.

India-US Economic and Financial Partnership Meeting held

The 7th India-US Economic and Financial partnership meeting was held in New Delhi. It was Co-chaired by Finance Minister Nirmala Seetharaman and US Secretary Steven T Minuchin. The leaders took efforts to improve mutual cooperation on wide range of multilateral subjects. It included combating financing of terrorism and anti-money laundering.

Highlights

  • India and US discussed policies related to stimulate economic growth
  • The countries noted significant steps taken by India to strengthen financial sector that includes
    • Plans to merge state-owned banks
    • PSB recapitalization plans
  • Both the sides also discussed capital flows, external economic environment and investment promotion related issues
  • The US offered its support to stand by India for its Presidency of G20 summit in 2022.
  • The Financial Regulatory Dialogue was also held alongside where the financial regulatory developments in both the sides were discussed
  • In 2017, the US helped the Indian city Pune by financing governmental needs in support of government’s Smart City initiative.