The G-20 has pledged to take strong practical measures to reduce the global average cost of transferring remittances to five per cent.

India pushed for a reduction in the remittance costs of non-residents at the G-20 summit that ended Sunday afternoon.

India had asked G-20 to work on steps to reduce costs in sending money home from abroad which is as high as 10 per cent in some countries.

Railways Minister Suresh Prabhu, who is Prime Minister's Sherpa at the G-20 deliberations, said Indians send maximum money back to their country and India is the single largest recipient of non-resident remittances close to 70 billion dollars per year.

He added India has been able to convince Saudi Arabia to reduce it to 3.5 per cent.

In a separate G-20 plan to facilitate remittance flows, the grouping described the RBI's move to facilitate the receipt of foreign inward remittances directly into the bank accounts of beneficiaries under the Money Transfer Service Scheme as an innovative step with the potential to reduce the cost of remittance transfers.

It also recognised the value of remittance flows in helping to drive strong, sustainable and balanced growth saying it is a major source of income for millions of families and businesses globally, and is an important avenue to greater financial inclusion.

The plan said remittances to and from G-20 countries account for almost 80 per cent of global remittance flows.