Female Remitters or Recipients of Overseas Remittances: Opportunities, Challenges, & Solutions

CA Krishnan has built an established and stronger base for financial reporting, enhanced cost controls and an efficient MIS system for the company and branches, developing and guiding the management in making various decisions. In October 2021, he was rightly handed over the mantle of Chief Executive Officer for the Indian operations and is now responsible for the overall operations and business at Unimoni offering broad managerial, internal control and strategic advice to management.

Throw some light on the prominent role of women as senders and recipients of overseas remittances
It's a common observation that women often allocate a larger portion of their income compared to men, despite earning less. This trend can be attributed to various factors. Women play a crucial and affirmative role as both senders and recipients of funds sent overseas, particularly through remittances. Their active engagement in sending and managing remittances can empower them economically, enhance decision-making, and foster their inclusion in the labour market.

As primary providers for their families, migrant women significantly contribute to household welfare and may even assume traditionally male roles in their communities. Additionally, their responsible management of household resources can lead to heightened autonomy and socioeconomic empowerment. Despite challenges such as limited access to credit and land ownership, women's participation in remittance flows serves as a catalyst for positive changes in gender roles and power dynamics within societies.

What kind of initiatives & programs do private and public bodies implement to support women in their remittance transactions? Are these measures helping in bridging the Digital Gender divide?
A number of public and commercial efforts and programmes have been put in place to assist women with their remittance transactions and close the gender gap in the digital sphere. A few considerable steps are government subsidies, training initiatives, awareness campaigns, digital payment methods, mobile money services, financial literacy programmes, and partnerships with women-focused organisations.

By providing them with the information, abilities, and tools necessary to access and make use of digital financial services for their remittance needs, these initiatives are empowering women. Although these initiatives have contributed to closing the gender gap in the digital sphere, further work is needed to remove any remaining obstacles and guarantee women's full participation in the digital economy.

Compared to men, women face more challenges as senders and recipients, elaborate on this in detail
As both the senders and the beneficiaries of remittances, women tend to face a different set of obstacles than males do. In addition to cultural norms, inadequate financial literacy, and unequal access to formal financial services, these issues are influenced by a variety of other factors as well. The ability of women to start or control remittance transactions may be hindered by cultural expectations and gender norms, which may inhibit their decision-making authority within homes.

However, due to their lower levels of technological competency, women may have a more difficult time navigating the digital remittance systems. It is necessary to acknowledge that women play a significant role in the flow of remittances and that they can benefit from focused interventions that aim to enhance their financial empowerment and security in transactions. This is the case notwithstanding the hurdles that have been presented.

To understand overseas remittances, women’s education and upskilling is paramount to leverage safe money-transfer methodologies instantly and effectively

What is the contribution of overseas remittances in the global economy? Explain in detail
Overseas remittances play a pivotal role in the global economy by providing essential income to millions of individuals in developing nations. In 2023, India emerged as the top recipient of remittance inflows worldwide, amounting to $125 billion. This substantial injection of funds significantly bolsters India's economy, aiding in poverty reduction and fostering economic growth.

Major contributors to India's remittance inflow include the UAE, the United States, the United Kingdom, and Singapore, collectively constituting 36 percent of the total. Additionally, Gulf Cooperation Council (GCC) countries, notably the UAE, make significant contributions to India's remittance inflow. Government initiatives, such as linking UPI between India and Singapore and establishing payment collaborations with the UAE, are instrumental in enhancing remittance flows. These endeavours underscore the importance of such initiatives in advancing economic prosperity through overseas remittances.

Evaluate the future contribution of overseas remittance in the global economy and share us what will be the future role of women when it comes to overseas remittance focused on both senders and recipients
Overseas remittances have been a significant contributor to the global economy, especially for emerging countries like India. With increasing labour migration, more women are becoming active participants in the labour force, both domestically and internationally. From India, many women are going outside countries in the education and healthcare sector for employment. These women employees will become senders of remittances, contributing to their families' economic well-being and potentially challenging traditional gender roles.

Remittances sent by women are often prioritized for spending on education and healthcare for their families. As women gain more control over remittance funds, they are likely to continue prioritising these areas, leading to long-term social development and economic growth in recipient countries.

Inward and outward remittances will likely continue to play a crucial role in the global economy, with women increasingly participating as both senders and recipients. Technological advancements and policy interventions can further enhance the positive impact of remittances, empowering women and contributing to socio-economic development worldwide.

To sum up, with technological advancement and liberalised immigration policies by developed countries, people continue to migrate for work opportunities, contributing to remittance flows. Digital platforms and mobile banking technology are already revolutionising the remittance industry, making transactions faster, cheaper, and more accessible. This trend is likely to continue and digital remittance platforms can provide women with greater control over their finances, enabling them to allocate their funds properly. Women receiving remittances may increasingly engage in entrepreneurial activities or invest in small-scale enterprises. Access to remittance funds can serve as seed capital for starting businesses, contributing to local economic development and poverty reduction.