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Remittance

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Deepak Kushwaha
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33 views

Remittance

Uploaded by

Deepak Kushwaha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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UDAAN SHAIKSHIK KENDRA BANKING PREPARATION TILAK SINGH MAHARA SIR Remittance Contents ‘Meaning and features Features of remittance in Nepal Status of remittance and foreign employment in Nepal Positive as well as negative effects on the economy Factors affecting remittance Importance of sending remittance from the formal channel, and its practices in Nepal ‘Importance of use of remittance in the productive sector, its condition in Nepal, and efforts by the government for productive use of remittance in Nepal ‘The trend of remittance inflow in Nepal and its future of s7d/Meaning © fate sere faa ae a cafe ATT aT RTO aT ERTS Gers aa ore GA os ar are STAT ‘aay afer sreger Fereere art asta reer fara Parra cree aetererea ar SS ATEMTRT STA STAT TSS A TE fatter afta) ‘© Remittances refer to money remitted by people working abroad to their home countries. This means that ifthe workers of any country send the foreign exchange eamed by working outside their country or abroad through formal or banking channels to their country, itis called remittance. © faborare afm x mafia on fr glu ara qf eer hwo am ome ear mE eats ar afta sears art ag, sar ome 74 aera facet fafa afar of afe mode) af ftemare wm cameny cre aiat wy sect SeTeT ‘SETEATT SFE TASTS] Remittances contribute to both individual and macroeconomic development. Remittances increase not only the income of the recipient but also the foreign exchange reserves of the recipient country. If the money received from remittances is invested, it will increase the production of the country. © wafers onfiia ercare tal fattomr facrreatier axe feast qarat aecagel aia eh | ae faerie Sora feast ar aia areas nde Prelate er Sere aver wafica area aff ee AIST From a macroeconomic perspective, remittances are an important source of foreign exchange for developing countries. It helps in maintaining the foreign exchange reserves of the developing countries and also helps in maintaining the extemal stability of the countries with weak export capacity, Features of Remittance in Nepal avert tftrcarearat ferateaTers. UDAAN SHAIKSHIK KENDRA BANKING PREPARATION TILAK SINGH MAHARA SIR © Sure sraretierdt mer yaar are eerar ware srsarerat smear ser hl is a part ofthe emigration income sent by Nepalese immigrants from the destination countries to the home country. © Rabe saree apart aga GraTaT UATE Sam sAfHSaT TiE Remittance inflows are recorded as transfers to the balance of payments account © aurerar rcareat My Ia WET AYFCE FGulf countries are the major source of remittance for Nepal © 111 countries are officially opened for Nepalese people to go for foreign employment ‘areflen§ &firas taméhar wr caf § we £8 Sar sttorftas weer gen afew © Sarena teh gar afer meer ter fcarsa wea W/ Remittance has been one of the major sources of foreign exchange reserve in Nepal Faun onrrd Sarerat ae apace arrceet fre eta steal Rema w/Studies have shown that remittance income has played a significant role in poverty reduction in Nepal. © Suef sain eeiat artiste freer Virgen sem rama w) Remittance has financed the majority portion of Nepalese consumption expenditure ‘The Status of Foreign Employment and Remittance of Nepal/arerat Aaftras term Ceftgareaat fete Saree Grain tal Safire ee «ae ora ote HecaT SATS HAT Ra Ol TAS AMT aT TT ATA STI TA AT avg, fiter, cares, aiteft Franny, fartia area aftsrer ¢ aftga sit Paton eta seal tren Gerat com fafa serrert Fars cafe gear Mare Gaed < iowa Bee c acters seared Fes anferaret arse @frw) Looking at the context of Nepal, foreign employment and remittance income are important bases of the economy. Various studies show the fact that it has played a leading role not only in maintaining Nepal's external sector balance, but also in education, health, poverty alleviation, mobilization of financial resources and building of national capital. In this context, the trend and current situation of foreign employment and remittances can be shown in the following table. Year Total Immigrants Remittance (Rs. In billion) Remittance to GDP Ratio 2075776 236211 wr 228) 20767 190393 815 22.5 2077/78 72072 2078779 388867 2079/80 337144 (Up to Falaun 2079) 1112.52 (Up to Jestha 2080) ‘Source: MOF, NRB, CBS Use of Remittance fara #t 3eatt According to the data from CBS, the use of received remittance is given below. CBS #1 Tea Sqan 3a Crgareaat Sea TT Faget el Title Percentage of Reveived Remittance ‘Consumption Bw Payment of Loans ‘Acquiring Household Property Education ESSN GM OnE ROMA CNN LOM EMO eo LP ROE) UDAAN SHAIKSHIK KENDRA BANKING PREPARATION TILAK SINGH MAHARA SIR ‘Capital Formation 2 Another purpose 3 Total 100% ‘Source: CBS, 2011 Positive Effects of Remittance igareaat THRE TTA: The positive effects of remittance can be observed at both household and macro levels, and they are listed below. MRrgareai area ier sar gee nia 8 wear er wire «aa BETTE spores Pega a BF . . Increases household income and helps to minimize liquidity/financial constraints" sear werse t aera ert Sears aa TH HET TEL Ensures better and increased investment in human capital by an increase in spending on health, education, and nutrition’earee, Fear x Shao ert eae ra tte ore «gat eer APH eS Helps to increase enttepreneutship and promote the local economy/Serraera aaraat eardt seiaerend ards ea a Beneficial to reduce poverty "fat arora ent error IE Helps to mitigate economic as well as external shocks such as economic recession and natural disasters to the remittance- receiving householdfirgarrar sre 7 afta sna w

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