International Day of Family Remittances Current Affairs - 2020
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
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.
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.
Tags: Foreign funds • Gulf Countries • Indian Diaspora • International Day of Family Remittances • NRI deposits
The International Day of Family Remittances (IDFR) is observed every year all across the world on 16 June. The day recognizes the contributions made by more than 200 million migrants towards improving the lives of their 800 million family members back home, and also to create a future of hope for their children.
About International Day of Family Remittances
Background: IDFR is a universally-recognized observance adopted by United Nations General Assembly’s (UNGA) resolution A/RES/72/281.
Objective: Through the observance of IDFR, the United Nations (UN) seeks to create greater awareness about impact remittances have on millions of households, as well as on communities, countries, and entire regions. IDFR also calls upon governments, private sector entities, and civil society, to find ways that can maximize impact of contributions made in form of remittances by individuals and collective actions.
Custodian: The custodian of IDFR towards these objectives is United Nations International Fund for Agricultural Development (IFAD).
IFAD supports #FamilyRemittances2030 Campaign, to allow all stakeholders to endorse the values day represents and to showcase their engagement.
Significance: IFDR furthers 2030 Agenda for Sustainable Development and Sustainable Development Goals (SDGs). The day is fully recognized at global level, as well as included as one of key initiatives to implement newly-adopted Global Compact for Safe, Orderly and Regular Migration (GSM), which also calls for financial inclusion through remittances, reduction of remittance transfer costs, and covering all dimensions of international migration in a holistic and comprehensive manner.
It is an specialized United Nations (UN) agency that was one of the major outcomes of World Food Conference 1974. Later in 1977, it was set up as an international financial institution.
It is based in Rome (Italy), which is considered to be UN’s food and agriculture hub.
Since 1978, IFAD have provided US$18.5 billion in grants and low-interest loans to projects that have reached to more than 464 million people.
What is Remittance?
It is a transfer of money, commonly by a foreign worker to an individual in their home country. The money sent home by migrants (working in foreign country) competes with international aid as one of the largest financial inflows to developing countries.
India is the world’s top recipient of remittances.