Cross-Border B2C Payments and Remittances in India: Trends, Barriers, and Enablers

Author(s)	Mr. Rachit Gupta
Country	India
Abstract	India is the world's largest recipient of remittances, with inward flows reaching a record US$ 135.46 billion in FY2025, while resident Indians remitted US$ 28.98 billion outward under the Liberalised Remittance Scheme in FY2026. Yet the global average cost of sending US$ 200 across borders stood at 6.36 percent in Q3 2025, more than double the UN Sustainable Development Goal target of 3 percent. This paper examines trends in India's consumer cross-border payment flows, analyses barriers including opaque foreign exchange markups, correspondent banking friction, tax compliance burdens, and licensing asymmetries, and assesses key enablers: the internationalisation of UPI, fintech competition, TCS reform in the 2025 Union Budget, and multilateral initiatives such as the G20 cross-border payments roadmap and Project Nexus. Drawing on RBI data, World Bank monitoring, and FSB reports, the paper concludes that India is uniquely positioned to lead the transition to low-cost, real-time consumer cross-border payments, and offers policy recommendations on pricing transparency, licensing, and payment system interlinkage.
Keywords	Cross-Border Payments, Remittances, UPI, Liberalised Remittance Scheme, Fintech, India, Financial Inclusion, Project Nexus
Field	Business Administration
Published In	Volume 8, Issue 4, July-August 2026
Published On	2026-08-21
DOI	https://doi.org/10.36948/ijfmr.2026.v08i04.86155

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