|Type:||Papers and Briefs|
|Series:||South Asia Working Papers|
Every year South Asian countries send out a significant number of migrant workers, resulting in remittances becoming an important source of funds for economic development. However, despite its huge potential to contribute to economic growth, South Asian countries have not yet fully maximized benefits from remittances because of their limited financial sector development and financial inclusion, and because a substantial portion of remittances to the region are channeled informally. Concerted efforts by the governments, regulators, and financial sectors are required in addressing legal and policy constraints, improving formal financial systems, and enhancing customer education to expand formal remittance markets and achieve financial inclusion.