There are numerous studies on the transnational flow of remittances, which normally indicate the transfer of money from immigrants to their families in their home countries. However, the concept of reverse remittances—the flow of money from home countries to destination countries—has so far received little attention in India, particularly in Punjab. This article explores the phenomenon of the two-way flow of remittances by demonstrating how socio-economic dynamics mediate the practice of remittance-sending, remittance-receiving and both among the Punjabi migrants. These economic flows reflect an indirect reciprocity system of mutual responsibilities that persist over long durations, which can at times lead to financial strain for both the migrants and their families in Punjab. The use of a multinomial logistic regression model reveals that demographic factors of migrants and the financial status of migrant’s households play pivotal roles in shaping the flow of remittances and reverse remittances.
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