Every year on June 16, the world observes the International Day of Family Remittances (IDFR) to honour the remarkable contributions made by migrant workers who send money back home to support their families. These remittances are not merely financial transactions — they are lifelines for millions and enablers of development for countless communities. In 2025, the theme of the day—“Remittances financing development”—underscores the integral role that remittance flows play in achieving the Sustainable Development Goals (SDGs), particularly in Low- and Middle-Income Countries (LMICs).
Why in the News?
- The IDFR 2025 was observed on Monday, June 16, and focused on encouraging a renewed and extended commitment to maximise the impact of remittances on global development efforts.
- The United Nations General Assembly recognises this day to raise awareness of how remittances, often sent by low-wage migrant workers, transform the lives of over 1 billion people globally, both senders and recipients.
A Global Web of Support
- Remittances constitute a significant source of income for millions of families worldwide, particularly in developing nations. In 2024 alone, India received record-breaking remittances, mainly from countries like the UAE, the US, Saudi Arabia, and the UK, strengthening its foreign exchange reserves and household incomes.
- These funds often go toward education, healthcare, housing, and small businesses, fostering financial independence and resilience in economically vulnerable regions.
Driving Sustainable Development
- This year’s theme — Remittances financing development — aims to highlight how these financial flows contribute to achieving the 17 Sustainable Development Goals.
- From poverty reduction (SDG 1) and gender equality (SDG 5) to decent work (SDG 8) and climate resilience (SDG 13), remittances are essential enablers of progress.
- They fund local infrastructure, support livelihoods, and provide buffers in times of economic or climate shocks, especially in rural and underdeveloped areas.
Policy and Institutional Support
- The IDFR 2025 also reflects the growing global consensus on the need for institutional frameworks and financial policies that facilitate safe, affordable, and transparent remittance transfers.
- Stakeholders, including governments, financial institutions, and development agencies, are encouraged to implement measures that reduce transaction costs, encourage formal transfer channels, and promote financial inclusion for migrants and their families.
Historical Perspective
- The roots of IDFR date back to June 16, 2008, when IFAD and the World Bank jointly launched the initiative.
- Initially created to highlight the impact of low-wage migrant workers on global development, the event has since evolved into a global movement advocating for the recognition, inclusion, and empowerment of migrant families.
- Over the years, this day has become a platform for dialogue, innovation, and collaboration, drawing participation from public and private stakeholders worldwide.