Money transfer: A cash lifeline for the rural poor

After two days of driving almost 700 km on rough rural roads, a team of managers from money transfer company Western Union belatedly arrived at the town of Gorakhpur in Uttar Pradesh, India's most populous state. Before Western Union opened a branch in the area, the villagers "had huge difficulties in receiving money", said Mr. Kapur,. There are 65,000 bank branches in India, but these are concentrated in urban areas, and about 80 per cent of India's 1.1 bn citizens lack access to financial services. India, however, is the world's largest recipient of remittances, according to the World Bank. Inward remittances from Indians working overseas surged from $2.1 bn in 1990-91 to $26.8 bn in 2006-07. Remittances can play a large role in driving income to impoverished areas and reducing poverty. Western Union is aggressively expanding in India to capture a share of this booming business by adding locations, offering faster and cheaper services than local banks and launching innovative marketing campaigns.