NRIs remit highest ever USD 107 billion in FY 2022-23

NRIs remit highest ever USD 107 billion in FY 2022-23
New Delhi: The Governor of the Reserve Bank of India in a statement announced that inward gross remittances from the NRI for FY 2022–23 had reached a record high of USD 107.5 billion. In his statement on the Indian Monetary Policy Committee Report, RBI Governor Shaktikanta Das further said, “External sector indicators have improved significantly. Foreign exchange reserves have rebounded from USD 524.5 billion on October 21, 2022 and now stand in excess of USD 600 billion taking into account our forward assets.” He added that India’s services exports have continued to grow at a healthy pace in the first two months of 2023. Indian regulators had recorded that remittances by NRIs had crossed USD 10 billion in late 2022. The latest spike in remittances was attributed to better growth prospects of the Gulf Cooperation Council (GCC) countries. He also said that the RBI is keeping a close watch on the banking sector turmoil in some developed countries.

“Bank failures and contagion risk have brought financial stability issues to the forefront. Amidst this volatility, the banking and non-banking financial service sectors in India remain healthy and financial markets have evolved in an orderly manner. Economic activity remains resilient and real GDP growth is expected to have been 7.0 per cent in 2022-23,” he stated. International Monetary Fund (IMF) managing director Kristalina Georgieva warned that the world economy is expected to grow at less than 3 per cent this year, with India and China expected to account for half of global growth in 2023.

A sharp slowdown in the world economy last year following the raging pandemic and Russia’s military invasion of Ukraine would continue this year, according to the IMF. Georgieva also said that while the global banking system had “come a long way” since the 2008 financial crisis, “concerns remain about vulnerabilities that may be hidden, not just at banks but also non-banks”.

The RBI Governor also issued a warning about the global banking crisis, saying that the global economy is now confronted with serious financial stability challenges from the recent banking sector developments in some advanced economies.

Das stated that this called for a reappraisal of the responsibilities of regulators and regulated entities the world over and their collective role in ensuring a stable financial system.

“While regulators need to identify potential vulnerabilities and take proactive regulatory and supervisory measures, it is incumbent upon the regulated institutions to exercise due diligence in their risk management and corporate governance practices,” he said.