The US government's decision to impose a $100,000 fee on new H-1B visa applicants is expected to cast a shadow over remittance growth and partially impact earnings from the foreign exchange business for financial services providers, bankers and forex advisors said. Remittances-or the money sent home by Indians working abroad-totalled $34 billion in the quarter ended June 30, up from $29.5 billion a year earlier, show balance of payments data. Net remittances in fiscal 2025 ended March 31 were $124 billion.

Forex remittances will be affected by the US decision, said Hariprasad MP, executive director & head of business at Ebixcash World Money Ltd. "There is a likelihood that companies will reduce travel to the US, which in turn will bring down forex transactions."

The forex business from companies is also expected to be partially impacted, as fewer employees may travel to the US for on-site projects.

State Bank of India posted a forex income of ₹1,632 crore in the first quarter of fiscal 2026, four-and-a-half times more from a year earlier. Remittances paid through SBI totalled ₹1,502 crore, growing 0.7% on year. "We've observed a shift in remittance patterns. Before Covid, a significant portion of remittances came from the Middle East. Now, over 25% of our total remittances originate from the US," said Gaura Sen Gupta, chief economist at IDFC First Bank. "If the current situation persists, the growing uncertainty will discourage people from working in the US, which could negatively impact remittances from that region. The impact will likely be visible in the numbers over the coming months," she added.