Business Standard ·
Datanomics: Remittances to India from Aus, Saudi cost double the UN target
India's remittance flows are rising, but high transfer costs and limited UPI links show the need for wider cross-border payment connectivity
Prime Minister Narendra Modi recently said UPI should be linked with more countries to cut remittance cost for overseas Indians. Personal remittances accounted for over 3 per cent of GDP in 2025, the highest among the world’s six largest economies. As value, remittances above $500 held the highest share, while by volume, those under $200 were at the top. UN’s goal is to cut the average cost of sending $200 to 3 per cent or less of the remittance value by 2030. Among the top 10 source countries, six remained above this target in Q3CY25, with costs in Australia, Saudi Arabia double that mark. Of the ten countries shown on Chart 1, India has a UPI link with just UAE, Singapore, Qatar. UPI payments fall under the RDA/Vostro Accounts category, which has the highest share in sending remittances. The recent move on UPI fee would not affect personal remittances.
