Punjab Research Group

Downturn hits money transfers By Dil Neiyyar, BBC Asian Network

Posted in Articles, News/Information by Pippa on April 1, 2009

Sujith from Cardiff came to Britain to get a good education, earn some money and help his family back in India.

 

But he’s stopped sending money because of the falling value of sterling.

“I used to send about a grand (£1,000; $1,400) every quarter [three months]. But I stopped because of the falling rate,” he said.

That means that Sujith’s story is not uncommon.

There’s been a massive fall in the number of people sending money back to India. Some money transfer agents say customer numbers have dropped by as much as 80%.

Last year £300 million was sent from the UK to family and friends in India. A poor exchange rate and unemployment are being blamed for a sharp fall this year.

 

Declining business

Inderjit Singh’s shop in Handsworth in Birmingham is popular with people sending money back to India. But this year far fewer people are using his money transfer business.

 

“After Christmas the customers became very down. Before Christmas normally we send about £4,000 to £5,000 a week to India. And now only £800, £700, £900 maximum. It means 70% to 80% customers drop,” he said.

 

To read full article: http://news.bbc.co.uk/1/hi/business/7971948.stm

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