UAE approves a new fastest remittance system for Pakistan

Dubai (Excerpt from Gulf Urdu-Pakistan Association Dubai Conference) The United Arab Emirates has introduced a new faster remittance system in Pakistan, for which the State Bank of Pakistan has been contacted for approval.

According to the leading UAE newspaper Khaleej Times, with the ‘new money transfer system’, remittances in Pakistan will be able to be delivered to the doorstep in hours like ‘Hawala or Hundi’.

What is reference or handi and why is it popular?

The name itself refers to the illegal transfer of money from one part of the world to another and the most important role in this is the agent or middleman who can be called an intermediary. Middlemen rarely leave a record of a transaction.

In this method money is sent from one country to another country without moving from its place. There is no need for banks or currency exchanges, no forms to fill and no fees to be paid.

There is one person who sends the money and another person who has to receive the money and there are at least two other people in between whom you can call intermediaries or middlemen. This is the fastest way to send money.

Pakistan Association Conference on Remittances in Dubai

Speaking at the Resilient Remittances (RemiLink23) conference in Dubai on Thursday, Usman Bin Rais, Chief Operating Officer of Instant Cash, said that the scheme will allow recipients to have money delivered to their homes instead of standing in queues as ‘ Reference or handi’ is the procedure used.
The ‘new money transfer system’ introduced by the UAE will help people living in remote areas of South Asian countries where access to the banking system is limited.

Addressing a conference in Pakistan Association Dubai, he further said that discussions are ongoing with the State Bank of Pakistan in this regard. This proposal is on the table of the central bank. Central Bank experts are considering this which is very encouraging. However, it is not yet clear when the proposal will be approved.

What else is included in the ‘New Remittance System’?

Foreign Exchange and Remittances Group (FRG) joint treasurer Imad Mulk has said that the ‘new remittance system’ will also include microfinance services where funds are provided in advance and people pay a month later. .

He further said that the people involved in the Handi system not only deliver the money to the doorsteps of the recipients but also provide advance money services to those who need it. Similar services have been recommended in the ‘New System of Money Transfer’.

Usama Ur Rahma, a member of the advisory board of the Foreign Exchange and Remittance Group (FRG), proposed in the conference that funds should be delivered to the people through digital means as well as the existing infrastructure in Pakistan.

Why was there a need for a ‘new money transfer system’?

The government of Pakistan has launched a large-scale crackdown against smuggling of foreign currency. As a result of this crackdown, law enforcement agencies have arrested the people doing the business of ‘Hawala or Handi’.

An increase in remittances through the banking sector has been seen after the arrest of people doing ‘Hawala or Handi’ business. However, the migrants are demanding the fastest channel of remittance.