India to press G20 for deadline to cut money transfer costs
India to press G20 for deadline to cut money transfer costsReuters

India will reportedly press the G20 economies to set a two-year deadline to lower the cost of international money transfers, potentially saving over $20bn for developing nations.

An Indian delegation that plans to attend a meeting of G20 deputy central bank governors in Istanbul on 11-12 December will "demand a deadline of two years", Reuters reported, as a 2014 deadline to lower the average cost of transferring money home has been missed.

Saudi Arabia has reduced remittance costs to about 3% and India is optimistic that other G20 countries will agree to set a deadline to bring down the costs.

Remittance Market

Remittances to developing countries are expected to total £278bn ($435bn, €354bn) in 2014, a 5% increase over 2013, according to the World Bank.

India is the world's largest recipient of remittances, with about $70bn finding its way into the sub-continent.

India, last month, won the backing of G20 leaders in Brisbane to take "strong practical measures" to cut the average cost of sending money home to 5%.

In 2011, G20 members agreed to bring down the global average cost of remittances to 5% by 2014, but that deadline has been missed.

In 2009, the G8 economies set a target of cutting the average cost of transferring money internationally to 5% by the end of November 2014, a deadline that has been missed.