Hot Deal

WTO: USA use veto power & opposing UPI to reduce the cost of cross-border remittances

367°
Finance Ninja
abhishek012

WTO: USA vs India | US and Switzerland are opposing UPI to reduce the cost of cross-border remittances:

The remittance costs are about 6.18 per cent globally which is well above the United Nation's target of 3 per cent

RBI, NPCI officials discuss remittance cost analysis with WTO member

The US and Switzerland are opposing because they have "big banks and they get huge earnings through these charges," the official said

The US and Switzerland vetoed India's proposal, and said they need to examine it further.

Senior officials of the RBI and the National Payments Corporation of India (NPCI) have made a presentation to the WTO members on reducing cost of remittances on March 25, an official said.

India is pressing for the adoption of open and inter-operable payment systems like UPI, among WTO (World Trade Organisation) members with a view to cut the cost of money transfers or remittances.

To cut the cost, India is suggesting to encourage digital transfers, fostering inter-operable systems, promoting competition, streamlining regulations, and enhancing pricing transparency.

A proposal in this regard was pushed by India in the 13th ministerial conference, which was held in February in Abu Dhabi.

"We had requested to make a presentation on the cost of remittances. The RBI and the NPCI gave presentations online on March 25. The meetings will continue on the subject at Geneva," the official said.

The remittance costs are about 6.18 per cent globally which is well above the United Nation's target of 3 per cent.

"We have told the WTO members that this cost is high. Our expatriates are large in number. Remittances are a major component in balance of payment and it is an important source of income.

"India has developed digital public infrastructure like UPI. Through mobile phones, payments are now easy and cheap," the official said.

The official said that banks and clearing houses impose high charges on these remittances.

"Our demand is that there should be a better understanding between countries and banks so that charges are imposed on one side only, that is 3 per cent. Double taxation is never a good idea for trade," the official said.

Though a large number of WTO member countries are supporting India's proposal, the US and Switzerland are opposing because they have "big banks and they get huge earnings through these charges," the official said.

In the 13th ministerial conference, these two nations vetoed India's proposal, and said they need to examine it further.

"We have been making our case. We have submitted a paper also," the official, who did not wish to be named, said.

Cross-border remittances have significant contribution towards socio-economic development of households and communities especially in developing countries, including poor nations.

Out of total remittances of USD 860 billion in 2023, USD 669 billion (about 78 per cent) went to low and middle income countries.

Cross-border payments and money transmission service is a critical financial service used by the sender and receivers for cross-border remittances, thus providing a point of contact with the financial sector that can be leveraged to increase access to other financial services, achieve financial inclusion and enhance participation in financial services trade.

"In view of the close relationship between such services and sustainable development, we underline the need to reduce the cost of cross-border remittances. We reaffirm our commitment to the UN SDG (sustainable development goal) to reduce to less than 3 per cent the transaction costs of remittances and eliminate remittance corridors with costs higher than 5 per cent by 2030," according to a WTO's draft ministerial declaration on facilitating cross-border remittances.

It said that the Ministerial Conference instructs the Committee on Trade in Financial Services to undertake a work programme consisting of efforts to understand the development impact of cross-border remittances; review the cost of cross-border remittances, trends and developments; consider how technology, emergence of new market players, different types of providers and new channels, and consumer behaviour are impacting the cross-border remittance services; and examine the drivers of cost of cross-border remittances and challenges associated with reducing it.

Disclaimer
We are not SEBI/IRDA registered. The information provided herein is for education purposes only. We will not be responsible for any of your profit/loss with this channel's suggestions. Consult your financial advisor before making any decisions.
Top Comments
Deal Captain Deal Captain
Link Copied

USA - Unrecognised System Abuser

The King of Democracy Hypocrisy

61 Comments  |  
9 Dimers
  • Sort By
Deal Cadet Deal Cadet
Link Copied
No those mentioned above are commercial news outlets.

IMF, WTO, UN, NPCI etc would be factual
Deal Captain Deal Captain
Link Copied

USA - Unrecognised System Abuser

The King of Democracy Hypocrisy

Deal Subedar Deal Subedar
Link Copied

"Though a large number of WTO member countries are supporting India's proposal, the US and Switzerland are opposing because they have "big banks and they get huge earnings through these charges," the official said."

- Excerpt from the above article

Typical how the US will behave lol if US revenue is cut lol this is why they are fighting with russians lol US want major part of share grrrr

So yes Hypocrites all over the world... but REMEMBER THOSE WHO IS STRONG ALWAYS WINS, its not democracy that matters its the ONE WITH STRENGTH THAT MATTERS

I NEVER SUPPORT both (US and Russia), both are pure hypocrites lol if they dont get their profit lol

Switzerland ahhh they are holding too much rotten money from all parts of world lol offcourse they will oppose

Good initiative by NPCI

Tech Guru Tech Guru
Link Copied

Its not good for banks whose purpose is to eat up your money

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning... "

- Ford Henry

View 1 more reply
Generous Generous
Link Copied

AMEX/VISA/Master All are american company remember and USA is dutybound to protect their intrest globally;

-chalo pehle RUpay ka international lounges me acceptence karwao phir baat aage badhegi thora , mujhe to lagta hai kisi ne jaanbooj k enable nahi karwaya hoga ki baad me isi bahane international tour ho jayega

Deal Subedar Deal Subedar
Link Copied

duty bound nahhh, they just dont want other competitor lol xD

They are scared of Rupay xD and UPI taking over lol with cheap charges (you know Indians are good at making cheap things next to china)

Well US and other hypocrites should accept new mode of competition or else duopoly (VISA and MASTER) will kill the system with more and more transaction charges increased slowly every year :) we need more competition for end user benefits

remember VISA and MASTER are not that old they got into business after 1950's only so they can be replaced or beaten by another new competitor like Rupay and UPI if allowed in the system

View 8 more replies
Deal Cadet Deal Cadet
Link Copied

All the more reason to support Rupay and upi to shake the throne of american payment networks

Deal Subedar Deal Subedar
Link Copied
Its more about hmm who wins who.. so let them fight and we enjoy the spoils of war lol

its like their competition is good for end consumers like us

so let the RUPAY grow and fight among VISA and MASTER and there by we have more competition and end user will have more rewards
Finance Ninja Finance Ninja
Link Copied

@DEEPANGEORGE

@demerius2020

Offering free international lounge access is just a waste of money.

RuPay select website dont have updated BIN series of all bank ?

These RuPay select offers bill is paid by banks, If banks are not interested in offering RuPay select offers, you will not get it.

Govt bank like SBI and BOB dont issue their popular/top card like bob eterna or SBI cashback,SBI simplyclick in Rupay mode i dont know being PSU bank what is stoppping them?

RuPay is non-profit org, RuPay will first focus on 50% to 60% credit card issuing market share and then RuPay credit card focus on transaction volume and value to approx 30% to 35%.

When it reaches here then it is up to the govt to convert it into a for-profit company.

Will then compete with Visa and MasterCard

International expansion - NPCI's focus is on UPI more than RuPay cards because RuPay will take 20-30 years to expand internationally but UPI is easier to expand.

For International RuPay cards - NPCI is focusing on selling RuPay technology to other countries. For example - UAE's domestic card scheme Jaiwan card is using RuPay technology and Jaiwan card COO told they will also launch Jaiwan-Visa cobranded card, Jaiwan-Mastercard cobranded card in future. So, Jaiwan card will accept on all RuPay card network countries UAE, India and GCC countries and out side UAE, India, GCC etc card will accept on all Visa/mastercard network.

Generous Generous
Link Copied
Offering free international lounge access is just a waste of money.
>from a consumer perspective its a SAVE of money and advatage offered by all card except Rupay

These RuPay select offers bill is paid by banks, If banks are not interested in offering RuPay select offers, you will not get it.
>better remove them from website , why to show fake offer and dissolve your credibility, Already the world knows that India is the best country in the world and indians are the most honest people

When it reaches here then it is up to the govt to convert it into a for-profit company.
Will then compete with Visa and MasterCard
>Tell this in WTO then

NPCI's focus is on UPI more than RuPay cards because RuPay will take 20-30 years to expand internationally but UPI is easier to expand.
>so i will have wait for NPCI focus to shift till?

For International RuPay cards - NPCI is focusing on selling RuPay technology to other countries. For example - UAE's domestic card scheme Jaiwan card is using RuPay technology and Jaiwan card COO told they will also launch Jaiwan-Visa cobranded card, Jaiwan-Mastercard cobranded card in future. So, Jaiwan card will accept on all RuPay card network countries UAE, India and GCC countries and out side UAE, India, GCC etc card will accept on all Visa/mastercard network.
>Is it simialar to RUpay-diner story , where diner do work domestically thru Rupay network But Rupay DONT work internationally thru diner network?😄

View 18 more replies
Deal Subedar Deal Subedar
Link Copied

btw can we get JCB RUPAY in SBI for any SBI cards?

Deal Subedar Deal Subedar
Link Copied
@abhishek012
which SBI card can we get in "JCB Rupay"? I am gonna try converting to it if possible on my existing SBI card
View 6 more replies
Finance Ninja Finance Ninja
Link Copied

@demerius2020

@DEEPANGEORGE

If USA govt backend Visa/mastercard and use Patriotism then what's the problem with RuPay ?

Dnt you know, In the early days the USA govt used US taxpayers' money to support Visa/Mastercard ?

Before 2008, Visa/mastercard was non-profit companies.

If you guys don't know all this then what can I say ?

One more thing, NPCI is a fully 100% private company, Same like Visa/mastercard.

Why US govt, Indian govt, Russian govt, chinese govt backed their payment network companies ?

Because these are not ordinary private companies, It controls the currency of its country.

What will be the inflation rate in USA and the rate of things today, How strong or weak will the US dollar become ? It depends on Visa/MasterCard (including SWIFT).

You will find this very funny because RuPay/UPI has not reached that level today but @DEEPANGEORGE You have nothing to do with patriotism, ok but you are worried about the price of potatoes and onions or fuel, right ? 

So you will have to support RuPay/UPI, because in future large percentage of world trade will depend on it, how strong our Indian currency is today and how much it remains will depend on the circulation of Indian rupees, all this will depend on UPI/RuPay/Digital e-Rupee etc.

And like i said, you will find this very funny because RuPay/UPI has not reached that level today but one day they will.

The US govt is not mad that it backs Visa/Mastercard.

Just few weeks ago, i told this thing - If you think that the US government doesn't control Visa/Mastercard, just a few years ago something happened. The Indonesian government said that Visa/Mastercard would settle transactions through our domestic card network and discussed data localization. Exactly one week later, Donald Trump, the US President at the time, rushed to Indonesia and reversed the law for transaction settlement on the domestic network, reversed the data localization law, and hinted at a little investment in Indonesia. Now think, if the US government didn't control Visa/Mastercard, what was the need for the US President to do all this ?

Deal Subedar Deal Subedar
Link Copied

Why copy the same strategy as US lol i hate to bring patriotism for business purposes 



I only support patriotism only at war where it is actually needed, for other things... its just business trick or lure (not gonna be trapped in a game of patriotism for businesses growth even if its from non profit organization which will be turned in profit organization pretty soon)


I mean i support business for their "good end product" not because they are from a particular country (in the name of patriotism) lol thats absurd

mhm i hate US govt and their VISA and Master too lol because of their patroitism game

lets view business as business , but here they (India and US) are bringing in patriotism (not only rupay but also visa and master) 

I support Rupay BUSINESS for good end product of low transaction fee.. other than that nothing else

lets view business as business (for good end product) not because of where they are born lol xD just my ideology

View 12 more replies
Deal Cadet Deal Cadet
Link Copied

Citations provide information to help your audience locate the sources you consulted when writing on a topic

https://proofed.com/knowledge-hub/guide-to-harv...

replyuser
Click here to reply
Reply