NRI?conference recommends formulation of NRI Development Corporation

Kuwait City, February 15: With more than 600 Non Resident Indians, business and finance experts and social leaders from Kuwait and some of Middle East’s top social leaders came together for the FEEL NRI Conference 2012 in Kuwait and deliberated on various issues related to expatriate Indians mainly their concerns on saving and investment.

Presented jointly by the Kuwait Kerala Muslim Association (KKMA) and the Foundation for Enhancing Expatriate Life (FEEL) the Conference titled "Beyond Remittance” highlighted the savings and investment related issues affecting the lower income group of NRIs.

The conference held under the patronage of Oommen Chandy, the chief minister of Kerala State and the chairmanship of M.M. Hassan, ex Minister for Non Resident Affairs of Kerala was the first ever NRI conference in the Middle East organized by a social organization.

Satish C. Mehta, the Ambassador of India inaugurated the Experts Dialogue Session held on Thursday as well as the first Middle East NRI Conference on remittance and savings organized at Ramada Hotel, Riggae, Kuwait.

The Conference began with an Experts Dialogue session on Thursday participated by financial experts, business executives and social leaders to review the role of government, financial institutes and social welfare organizations in fostering financial inclusion of lower income NRIs. The subject topic was presented by Sageer Trikarpur, chairman of KKMA and the NRI Conference Organizing Committee. He raised the concern of lower income group of NRIs that why even after 20 or 30 years of hard work an ordinary NRI is not able to save for an emergency, an important in life, and for his retirement?

NRIs despite their job or status do remit money regularly, most on a monthly basis. The money is routed through hundreds of banks and exchange companies to several thousands of households in India. Then what happens to it? Where is their hard earned money going?

The existing evidence of the patterns of remittance usage in India suggests that although the country receives a substantial amount of remittances from Indians living abroad, the bulk of remittances are being mainly spent on housing and everyday consumption expenditure, rather than into productive investment. Our Conference has reconfirmed this statement yesterday.

The speakers and panelists participated in the experts dialogue as well as in the plenary sessions pointed out that that the major reason for this pathetic situation is lack of awareness and financial literacy. NRI themselves and their dependent are not aware of the situation in its full seriousness and the government or other bodies never supported them in this issue. They stress the need for a behavioral change among NRIs. They should change their living and spending habits and start saving for his future by avoiding unnecessary expenditures, have a savings plan and to save regularly.

Banks and exchange companies have a role in this to collaborate with the government and channelized this scheme. Whereas the social organizations are the body to educate, mobilize and ensure that this program is success.

The speakers also found that the existing rehabilitation and pension schemes do not meet requirement of NRIs. Therefore, government, particularly the department of Non Residents has great responsibility for evolving a saving scheme for NRIs which is linked with a monthly saving and investment plan.

M.M. Hasan, the ex-minister for Non Resident Affairs and the chairman of the NRI Conference presided over the Conference. Mr. Nandakumaran P., the Managing Director of State Bank of Travancore was the Chief Guest.

Padmashree Dr. Azad Moopen, Managing director of DM Foundation presented the theme address at the inaugural session. Y. Sudhir Kumar Shetty, Chief Operating Officer of UAE Exchange Center delivered the keynote address. The plenary discussions held in two sessions were chaired by Noyal Thomas, Chief Executive and ex officio director of NORKA Roots and Mr. Sunny Mathews, Managing Director of Sefeena General Tradign and contracting Company.

Also joined in panel discussions held in two sessions were John Mathew, Deputy chairman of Arabi Enertech, R. Kuppanna, General Manger, Kuwait India International Exchange, K.N.S. Das, General Manager, Lulu Exchange, Pancily Varkey, Country Head of UAE Exchange, K.P. Paulson, Head, Strategic Risk Unit at Alahli Bank, Saleh Ahmad Al Salaeh, manager at Kuwait International Bank, E.D. Titus, Director of Bahrain Exchange co., John Simon, Marketing Manger of Al Mulla Exchange Co. and Rexzcy Williams, Director of Asset Avenues.

The conclusion ceremony was chaired by Mohammad Hilal, general manager at Nasser Al Sayer and Sons. Sageer Trikarpur, chairman of Conference Organizing committee summarized the conference recommendations. Munawar Mohammad and SM Basheer orchestrated the whole event. Abdul Fatah Thayyil, president of KKMA proposed vote of thanks.

Conference Recommendations:

1. The government should formulate an investment scheme for NRIs to promote saving habits. An NRI Development Corporation or similar may be created for mobilizing small savings from expatriate community; and the NRIs can directly contribute to this fund from their existing bank accounts. In view of the social cause of the fund, a percentage of contribution may be made from the government for the low income group of participants. The fund can be utilized or invested in government owned development projects, financial, agricultural, education, health or service related schemes and also invested in other development projects with the help of professional asset managers. In addition to retirement pension for NRIs, regular income should be paid to participants in a form of dividends from the investment.

2. Government should revise the existing contributory pension scheme by making it more attractive for the lower income group with the help of social organization and the media.

3. The government should provide support for NRIs intend to start up small and medium level investment projects by granting managerial grant, interest holiday or similar.

4. The NORKA Roots should act as a Nodal agency for coordinating these projects for NRIs.

5. The government should come up with a housing scheme for lower income groups.

The Beyond Remittance Conference was hosted by State Bank of Travancore and supported by Zain Telecommunications, Shifa Al Jazeera, Malabar Gold, Gulf Mart and Apsara Bazar and coorganized by Lulu Exchange, UAE Exchange, Kuwait India International Exchange, Bahrain Exchange and Al Mulla Exchange.