No doubt, remittances have a crucial role in the uprising of economic growth, especially for developing countries. Developing countries are more exposed to poverty and during a crisis situation; remittances play a vital role in returning to stable conditions. Today, the topic of remittances is of great interest to the researchers because it is playing a crucial role in economic growth. Remittances are sent through a proper channel with the help of which foreign workers are able to send money to their families. The practice is very much common these days but there are identified problems as well related to the transfer of remittances which are discussed below:
PROBLEMS FACED BY REMITTANCES:
- During a crisis situation, for example, earthquake, the communication channels are highly damaged that interrupts the transferring of remittances from one country to another.
- Due to the increased cases of money laundering, it has brought a difficult task of ensuring security for the money transfer companies and banks who deal with the remittances. There is a risk that end users may get affected by it.
- The modern money transfer has become so much complex. Companies are charging high even with the lower volumes of the money.