MUMBAI: Non-resident Indians (NRIs) bee-lined in overseas exchange houses last week after getting their June salary to sent most of their savings back home. Thanks to the 10% remittance bonus that they received with June salary as Indian rupee had fallen by over 10% to over 60 against the US dollar in June alone.
To put things in perspective, NRIs got 10% more for every dollar they sent back home and that's driving the Indian remittance story at a point of time when the foreign direct investment ( FDI) rate into India is falling as the government has failed to regain institutional investors' faith in India's groth story due to its flip-flop policies.
India, the world's largest receiver of remittances with record $69.35 billion of remittances in 2012 is set to keep its position intact. Thanks to the falling Indian rupee against the US dollar, which breached 61 mark on Monday, making it lucrative for the Non-Resident Indians (NRIs), especially the Non Resident Gujaratis (NRGs) and the Non Resident Mallyalis (NRMs), to remit money back home.