Understanding Remittance Networks In Gujarat, Orissa and Bihar
This study explores various remittance options currently available to migrant workers sending money to their families. It also examines the benefits a business correspondent (BC) remittance service may provide. MicroSave conducted this study in two cities in Gujarat, India, that workers have migrated to and in three districts of Bihar and Orissa, that workers have migrated from.
Most remittance transfers go directly through banks, the remaining reach beneficiaries by informal channels. Remitters often travel up to two kilometres to send money. More than half of study respondents claim they remit every month. Half the beneficiaries receive their money from the bank and half at their doorstep. The study explores:
- Remittance channel preferences;
- Ideal remittance service;
- Ranking of service providers;
- Trends over time;
- Remittances via BCs.
It concludes that remitters and their beneficiaries may find their current arrangements less than perfect, but trust is at the top of their preferences. BCs will have to present convincing arguments to remitters that their services are as trustworthy and convenient as banks or couriers. The study recommends local collection and delivery, and access to banking services for those without bank accounts.
