India and Canada are working on steps to make cross-border remittances easier, a move that could benefit more than four lakh Indian students studying at universities in Canada. The issue figured in discussions between Finance Minister Nirmala Sitharaman and her Canadian counterpart Francois-Philippe Champagne during the inaugural Economic and Financial Dialogue in Toronto.
Speaking to reporters after the meeting, Sitharaman said the two sides had discussed how digital technologies could support each other. Champagne said both countries were seeking closer cooperation in financial services, including easier payment mechanisms for students and their families.
Sitharaman said she had shared India’s experience of using direct benefit transfer to send payments to beneficiaries of government schemes during the Covid pandemic.
“We have had conversations on how digital technologies can help each other,” she said.
“We are talking; our teams are going to be talking further, and adopting everything which helps in easier payment, cross-border remittances, and also within the country, multiple choices for digital payments so that citizens can benefit from it,” added
Champagne said the financial services sector offered one of the biggest growth opportunities between India and Canada. “We are looking to have closer cooperation. We’re looking to facilitate payments, for example, for students,” he said.
Referring to the Indian student community in Canada, Champagne said, “We know we have 400,000 Indian students. We know that the remittance could be around 45,000 Canadian dollars per student. So, we are committed, both myself and the Minister of Finance of India, to facilitate that, because that, I think, will be a great benefit to the Indian students that are living in Canada.” He said easier remittances would give peace of mind to parents in India whose children are studying in Canada.
He added, “We’re looking at a number of things to facilitate payment between Canada and India, to have more financial institutions operating in the Indian market.” Sitharaman arrived in Toronto on Tuesday on the first leg of her eight-day official visit to Canada and the US aimed at deepening bilateral ties. During the US leg of the trip, she will attend the G20 Finance Ministers meeting in Asheville, North Carolina, and take part in a series of bilateral and business engagements.
The discussions in Toronto focused on digital payments, easier remittances and wider financial cooperation, with both sides indicating that further talks between their teams would continue. The proposed measures are expected to be particularly relevant for Indian students in Canada and their families in India.