Role of Exchange House

  Role of Exchange Houses in Foreign Inward Remittance:
In order to know the role of Exchange Huses in Foreign Inward Remittance we have to first get ourself  aware about Foreign Remittance which is described briefly her. For details refer my Blog on Foreign Remittance.

1.1.   What is Foreign Remittance?

1.1.1.      Foreign remittance can be defined as ‘the purchase and sale of freely convertible foreign currencies as admissible under Exchange Control Regulations of the country’. Remittance is the act of transmitting money to a distant location to fulfil an obligation. Foreign Remittances are of two types, the Foreign Outward Remittance & Foreign Inward Remittance.

1.2            Foreign Outward Remittance : The sender uses a bank or foreign exchange company to send money to foreign country.

1.2.1.     Foreign Inward Remittance: Similarly when the funds send by a person into his parent country where he resides such remittances are known as Foreign Inward Remittance.

1.3.   What are Exchange Houses?

1.3.1.      The Companies which are engaged in the business of money exchange and remittances are known as Exchange Houses. Exchange Houses are established primarily to meet the foreign exchange and remittance needs of their trading partners and customers at a time when formal Banking was yet to be established in the country. Exchange Houses are also engaged in currency Exchange Activities. One can Buy and sell foreign currency conveniently at any of the branches of the Exchange House. Exchange Houses are simply units established overseas in different countries such as UAE, USA, Europe etc where exchange of currencies between different countries takes place. They have host of products to transfer money worldwide. The Exchange Houses were set up to remit the money at speed of seconds. Exchange house are the agencies of large business houses or units of Banks to set up Branches overseas.

1.3.2.      Exchange houses offer reliable, professional and innovative services to make business transactions more efficient and family remittances faster and easier.

1.4.    How is Exchange House differing from Money Changers, Authorised Dealers, Foreign Banks etc?

1.4.1.      Authorised Dealers in Foreign Exchange Category-I (AD-I) – RBI has granted licences to full fledged banks which are equipped to undertake foreign exchange transactions in India. RBI has also granted authorisations to certain financial institutions to undertake specific type of foreign exchange transactions incidental to their main business.

1.4.2. Authorised Money Changers:-                   - 
       In order to provide facilities for exchange of currencies, especially to foreign tourist on arrival in India, RBI has granted permission to several established firms, hotels and other organisations permitting them to deal in foreign currency notes, coins & Traveller cheques, subject to directions issued from time to time. These firms & organisations are known as Authorised Money Changers and they fall in two categories viz.:

1.4.2.1.            Full Fledged Money Changers - are authorised to undertake both Purchase and sell transactions with the Public. They are also known as Authorised Dealer Category–II (AD-II)

1.4.2.2.            Restricted Money Changers – are  authorised only to purchase foreign Currency Notes, Coins and Traveller Cheques subject to the condition that all such collections are surrendered to Authorised Dealers in Foreign Exchange or Full Fledged Money Changers.

1.4.3.      Foreign Banks: Foreign banks are banks that do their operations and services at a foreign country that is rather not in close proximity to an individual. 
     A type of foreign bank that is obligated to follow the regulations of both the home and host countries. Because the foreign branch banks' loan limits are based on the parent bank's capital, foreign banks can provide more loans than subsidiary banks. 
      Banks often open a foreign branch in order to provide more services to their multinational corporation customers. However, operating a foreign branch bank may be considerably complicated because of the dual banking regulations that the foreign branch needs to follow.
     For example, suppose the Bank of America opens a foreign branch bank in India. The branch would be legally obligated to follow both Indian and American banking regulations.
    Examples of Foreign Banks:- American Express, ABN Amro, Citi Bank NA, Deusche Bank AG, HSBC etc.

1.5.   Setting up of Exchange Houses and related Governing Bodies / Central Banks Role in this direction
      Since the main function of Exchange Houses is remittance they are governed by the Rules relating to Remittance:

1.5.1.      Inward Remittances - Regulatory Requirement:

·    Generally no restrictions on inward Remittance. except that it should be received through authorized banking channel (Exception - FCRA 2010)

·         NRIs Can send Remittances to their / resident a/cs – No limit

         
                 While Bringing Forex during personal visits – Declaration (CDF):

·         For foreign currency exceeding USD 5,000/- and FC/FCTC exceeding USD 10,000/- or equivalent during visit to India, CDF (currency declaration Form) to be produced.

·         Residents receiving Foreign currency / TCs as gift / services rendered can retain up to USD 2,000/- (overall) and to surrender over and above the limit to AD within a period of 180 days

·         Residents can also park these funds in RFC(D) a/c

Provisions of FCRA – 2010 also Govern and regulate the Exchange Houses:

• ·         No foreign contribution shall be accepted by any candidate for election, correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered news paper, judges, govt. servants, members of any legislature, office bearers of political parties
• ·         Organizations of political nature, not being a political party, require prior permission of Central Govt. 
• ·         Contributions from Indian citizens abroad (NRIs) will not be treated as Foreign Source and do not attract provisions of FCRA
• ·     Contributions by non-resident foreign citizens of Indian, or non Indian, origin do attract provisions of FCRA even though the money comes from their NRO / NRE / FCNR accounts in India
• ·         Credit to registered account with Central Government only
• ·         All associations engaged in welfare activities in economic, educational, religious, social, charitable fields  receiving Foreign Contributions have to get themselves registered with Ministry of Home Affairs
• ·         Application in Form FC-8 giving details of bank and account number
• ·         Home Ministry grants registration and marks a copy to bank
• ·   Unregistered association to take prior permission from Home Ministry before accepting foreign contribution (Application in Form FC-1A). Copy of permission marked to bank.
• ·         Not more than one account for receiving foreign contribution
• ·         Banks to furnish Half Yearly Returns ( March and September) furnishing details of Foreign Contribution credited to registered accounts.
• ·         All branches to submit the said statement in prescribed format before 30^th April / 31^st October to IBD, CO, Mumbai, and confirm this to their ROs.
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• 1.5.2.      Setting up of Authorised Dealers, Money Changers etc. is governed by RBI as under 1.4 above.
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• 1.5.3.      FERG – Foreign Exchange & Remittance Group – the companies engaged in the business of money exchange and remittances have joined together to form FERG. This move was initiated by the Central Bank of UAE to bring the various exchange cos. From large sized companies to single branch outlets to come on a common platform and work for mutual benefit.  FERG is registered with Dubai Chamber of Commerce & Industry. The Goals & Objective of FERG is to become a strong & united Group to voice the views & opinions of FERG members and create awareness about the role of exchange companies in transferring millions of dollars across the world through official channels in safe, secure and economical way  within the regulatory frame work of the Central Bank and Government of UAE.
•       Most of the Exchange Houses are housed in the Middle East. The chart below depicts the large no. of Exchange Houses operating in Middle East.

Licensed Foreign Exchange & Remittance Companies in the UAE – Year End 2013

Emirates Head Office Branches Total Abu Dhabi 30 181 211 Dubai 85 367 452 Sharjah 11 121  132 Ajman 2 27 29 Umm Al Quwain 0 6 6 Ras Al Khaimah 0 22 22 Fujairah 1 22 23 Al Ain City 5 40 45 Total 134 786 920

* Source: Central Bank of the UAE’s Annual Report 2013 Exchange Cos. Are the preferred choice for money exchange and remittances needs of the customers and they are having Tie-ups with various correspondent banks  and agents across the world.

       

1.6.   What is the Role of Exchange Houses in Foreign Inward Remittance?

1.6.1.      Exchange houses offer a wide range of services from Demand drafts to instant credit facilities. They facilitate easy access for customers by delivering products

1.6.2.      Exchange Houses are extensively used for remittances from UAE. Unlike the Banking Channel this channel is based on Vostro accounts i.e. accounts maintained by Exchange houses with various banks in beneficiary countries. These accounts are pre-funded by Exchange Houses. The Remittance Transaction Process includes the following steps:

1.6.2.1.            Remitter deposits remittance money in cash in overseas currency at the Exchange House Counter.

1.6.2.2.            Exchange rate and transaction fee is communicated and confirmed over the exchange counter.

1.6.2.3.            Beneficiary Account Details are provided by the Remitter.

1.6.2.4.            The Exchange house Instructs the Beneficiary Bank with whom it has a Tie-Up for transferring the Requisite amount in the Beneficiary Country’s local currency using one of the following Modes:

Ø     E-Mail: Email is sent by Exchange House to Beneficiary Bank instructing it to transfer the amount to Furnished Beneficiary account.

Ø    Integration of Exchange House and Beneficiary Bank Systems through use of Technology and Payment Gates.

Ø     Beneficiary Bank’s Proprietary Remittance  Platform.

Ø     By issuing DD drawn on Vostro Account.

1.6.3.      Salient Features of Exchange House Channel:

1.6.3.1.            Since the Vostro accounts are pre-funded, the beneficiary account is paid based on the funding in this account. Hence, on receiving the Exchange House’s instruction, the beneficiary receives the amount almost instantaneously.

1.6.3.2.            The Exchange house has to fund its account with the Beneficiary Bank; hence the latter enjoys the float.

1.6.3.3.            The Exchange House can draw a DD on its Vostro account in favour of the Beneficiary and hand it over to the remitter over the counter, which can then be dispatched by courier or even sent along with a friend travelling back home. Alternatively the DD can also be drawn in favour of the remitter, who can then carry it back to his home country on his return and get it cleared there. This is a secure option for blue collar workers who would otherwise have to travel hard cash.

1.7.    Exchange Houses:  Most of the Banks have made Rupee Drawing arrangements with Exchange Houses situated abroad mostly in UAE, Abudhabi etc. for effecting Inward Remittances from NRI. 
      Given below is a list of Exchange House having Rupee Drawing Arrangement with Central Bank of India & Canara Bank

List of Exchange Houses Having Drawing Arrangement with Central Bank of India Sr. No. Exchange House City Country 1 Al Muzaini Exchange Company K.S.C.C. Safat Kuwait 2 Kuwait Bahrain International Exchange WLL Safat Kuwait 3 Oman Exchange Company WLL Safat Kuwait 4 Habib Qatar International Exchange Ltd. Doha Qatar 5 Al Ahalia Money Exchange Bureau Abu Dhabi U.A.E. 6 Habib Exchange Company LLC Abu Dhabi U.A.E. 7 Thomas Cook Al Rostamani Exchange Co. Dubai U.A.E. 8 UAE Exchange Centre Abu Dhabi U.A.E. 9 Wall Street Exchange Centre LLC Dubai U.A.E. 10 Bahrain India International Exchange Co. Bahrain U.A.E. 11 Zenj Exchange Co WLL Bahrain U.A.E.

Canara Bank has arrangement with following Exchange houses:

2.      EXCHANGE HOUSES

COUNTRY: UNITED ARAB EMIRATES
SL.No	NAME OF THE EXCHANGE HOUSE	TELEPHONE NO & E-MAIL
1	AL RAZOUKI INTNL EXCH CO LLC, DUBAI	+971 4 3932331 arieco@emirates.net.ae
2	AL AHLIA MONEY EXCHANGE, BUREAU, ABU DHABI	+971 2 6229666/+9712 6269329 bankingoperations@ahaliaexchange.com
3	AL ANSARI EXCHANGE ABU DHABI	+971 2 6227888/6108845/6108888 info@alansari.ae; banking@alansari.ae
4	AL FARDAN EXCHANGE, ABU DHABI	+971 2 6223222 eft@alfardanexchange.com; afex1@emirates.net.ae
5	AL ROSTAMANI INTERNATIONAL EXCHANGE , DUBAI	+971 4 6098100/6098106 ariemgt@alrostamanigroup.ae
6	ALUKKAS EXCHANGE, DUBAI	+971 4 3535469 exchange@joyalukkas.com
7	AL GHURAIR EXCHANGE, DUBAI	+971 4 2222955 info@saraf.ae
8	EMIRATES INDIA INTERNATIONAL EXCHANGE , DUBAI	+971 4 3374072/2964311 ceo@emiratesexchange.ae
9	HABIB EXCHANGE CO LLC, ABU DHABI	+971 2 6272316/6272656 hecoad@gmail.com; hecoad@emirates.net.ae
10	LEELA MEGH EXCHANGE, DUBAI	+971 4 2264628/3540191 operations@lm-exchange.com
11	LULU INTERNATIONAL EXCHANGE LLC, DUBAI	+971 2 6547000 info@luluexchange.com
12	ORIENT EXCHANGE CO. LLC, DUBAI	+971 4 2267339/2353795 quality.dept@orientexchange.com
13	UAE EXCHANGE CENTRE LLC, ABU DHABI	+971 2 4945420/6105555 hq@uaeexchange.com correspondent.banking@uaeexchange.com
COUNTRY:QATAR
1	EASTERN EXCHANGE EST., DOHA	+974 44412655 ho@easternexchange.com.qa
2	AL ZAMAN EXCHANGE WLL, DOHA	+974 44441448 ho@alzaman.com.qa
COUNTRY:SULTANATE OF OMAN
1	LAXMIDAS THARIA & VED EXCHANGE CO LLC., RUWI,	+968 2 4700065/4700044 finance@ltvedexch.com
2	MUSANDAM EXCHANGE, RUWI	+968 2 4831852/4834954 musandex@omantel.net.om
3	OMAN & UAE EXCHANGE CENTRE LLC., ALHAMRIA	+968 2 479 6533/4750830 omanuaex@omantel.net.om
COUNTRY:KINGDOM OF BAHRAIN
1	BAHRAIN FINANCING CO., BAHRAIN	+973 1722 8888 custservice@bfc.com.bh
2	BAHRAIN INDIA INTERNATIONAL EXCHANGE CO BSC (C) MANAMA	+973 17210330 bindi@batelco.com.bh
3	ZENJ EXCHANGE CO. WLL	+973 17224352 info@zenjex.com; zenjex@batelco.com.bh
COUNTRY:KUWAIT
1	BAHRAIN EXCHANGE CO.	+965 1824000 baexco@bec.com.kw
2	KUWAIT BAHARAIN INTERNATIONAL EXCHANGE CO	+9645 22421971/2421973 kbiec@qualitynet.net; kbiec@yahoo.com
3	UAE EXCHANGE CENTRE WLL	+965 22459417 / 8 vinayan.m@uaeexchange.com.kw
4	AL MUZAINI EXCHANGE CO KSCC, KUWAIT	965 1888818 rao@muzaini.com
COUNTRY:KINGDOM OF SAUDI ARABIA
1	ALAMOUDI EXCHANGE COMPANY, JEDDAH	+ 966 5 6474515 info@alamoudiexchange.com or ibd@alamoudiexchange.com

3.      Role of Agencies such as Western Money Transfer/ MoneyGram etc. in Foreign Inward Remittance in India

3.1.   Money Transfer Service Scheme (MTSS) of RBI is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances into India such as remittances towards family maintenance and remittances favouring foreign tourists visiting India are permissible. No outward remittance from India is permissible under MTSS. The system envisages a tie-up between reputed money transfer companies abroad known as Overseas Principals and agents in India known as Indian Agents who would disburse funds to beneficiaries in India at ongoing exchange rates. The Indian Agent is not allowed to remit any amount to the Overseas Principal. Under MTSS the remitters and the beneficiaries are individuals only.

3.2.   The Indian agent who has to be an Authorised Dealer, Full Fledged Money Changer or registered Non-Banking Financial Company (NBFC), IATA approved Travel agents ( having minimum net worth of Rs.25 lakhs ) requires RBI approval to enter into such an arrangement. The agent is allowed to open a special rupee account with an AD through which all the remittances disbursed under the scheme, are to be routed. The Indian agent pays the beneficiaries first, on instructions from the overseas principal and is reimbursed the amount and his commission, by the overseas principal, within a day or two through normal banking channels

3.3.   The Reserve Bank of India (RBI), on Tuesday Mar 4. 2014, decided to allow foreign inward remittances received under money transfer service scheme (MTSS) directly into the bank account of the beneficiary through electronic modes such as national electronic funds transfer (NEFT) and immediate payment service (IMPS).

3.3.1.      However, the RBI said that the recipient bank would credit the amount transferred by the partner bank only to KYC (know-your-customer) compliant bank accounts.

3.3.2.      Further, it said, with regard to bank accounts that are not KYC compliant, “the recipient bank shall carry out KYC/CDD (customer due diligence) of the recipient before the remittance to such account is credited or allowed to be withdrawn.”

3.3.3.      The RBI also instructed that the partner bank should appropriately mark the direct-to-account remittances to indicate to the recipient bank that it is a foreign inward remittance.

3.3.4.      Electronic message

3.3.5.      “The partner bank shall ensure that accurate originator information and necessary beneficiary information is included in the electronic message while transferring the fund to the recipient bank,” the RBI said.

3.3.6.      “The partner bank should add an appropriate alert in the electronic message indicating that this is a foreign inward remittance and should not be credited to KYC non-compliant and NRE/NRO account,” the RBI added.

3.4.    Non-Banking players play a vital role in the remittance and have a larger share in the Global Remittance business than conventional banks. MTOs (Money Transfer Operators) like Western Union and Money Gram have a network of agents across the Globe and serve as Non-Bank Remittance Channels. The remitter can visit an MTO outlet and remit cash in foreign currency to send money to any part of the globe where the MTO’s agent is present. The receiver can visit the MTO agent at his location and collect the money in local currency. The process for an International Remittance transaction is effected through an MTO is as follows:

The settlement between the MTOs in the two countries takes place through their partner banks. On receiving the remittance amount in cash from the remitter, MTOs deposit those funds in their local bank accounts. MTOs request their bank to transfer the consolidated amount to the bank account of the MTO agent in the receiving country. In order to minimize costs, only the net amount (total amount to be sent to the recipient country minus total amount to be received from that country) is sent.Please note that the beneficiary receives the money much before the settlement between the MTOs

Fund Movement for an MTO takes place as under:

3.4.1.      Western Union

3.4.1.1.            Western Union has been making our customers' lives a little better for more than 160 years.

3.4.1.2.            Founded as the New-York and Mississippi Valley Printing Telegraph Company in 1851, Western Union continues to span distances with innovative technology. For more than 160 years, we have been a powerful force fueling global economic growth and innovation.

3.4.1.3.            Today, Western Union promotes global economic opportunity and growth by bridging gaps in the financial services sector. Our growing product portfolio includes business solutions, consumer-to-consumer money transfer, bill-payment services and stored-value options such as prepaid cards. Online, by phone, from more than 100,000 ATMs and through more than 500,000 Agent locations worldwide, Western Union aims to move money anytime, anywhere and any way our customers choose, helping consumers and businesses grow.

3.4.1.4.            With a network of more than 500,000 Western Union, Orlandi Valuta and Vigo Agent locations in more than 200 countries and territories, we have locations in the neighborhoods where our customers live and work. Their services include:   

Ø     Send and receive money

Ø     Bill payments

Ø     Business Solutions

Ø     Prepaid, phone and gift cards and money orders

3.4.1.5.            Channel Partners in India Include Banks, Govt. & Private Institutions such as

Banking partners	Government  Institutions	Public Institutions
Andhra Bank Canara Bank Central Bank of India Dena Bank Indian Bank Indian Overseas Bank Karnataka Bank Oriental Bank of Commerce Punjab National Bank State Bank of India State Bank of Patiala Syndicate Bank UCO Bank United Bank of India ... and many others	India Post BPCL HPCL E-seva KSFE ... and many others	Paul Merchants Ltd. Transcorp International Reliance Money Express Weizmann Forex Wallstreet Finance Ltd. Muthoot Finance ... and many others

3.4.1.6.            Features:

Ø     Service approved by Reserve Bank of India.

Ø     Beneficiary/Receiver pays no fee.

Ø     Neither the Sender nor the Receiver has to have a bank account.

Ø     Service is Fast, Safe, Legal & Reliable

Ø     Every transfer is protected by a world class security system.

Ø     A single recipient can receive up to 12 remittances in a year

Ø     No membership or account required

Ø     No charges for the receiver of fund

Ø     The receiver should not disclose MTCN to anyone

3.4.1.7.            Benefits:

·                            The money reaches you safely in minutes through secure Global Network.

·                            At present, Western Union has over 1, 20,000 Agent locations in more than 190 countries.

·                            Sender can send the money by filling a simple form “ To Send Money”

·                            Receiver can receive the money by filling a simple form “To Receive Money”

3.4.2.      Prithvi Exchange a division of Prithvi Softech Limited is licensed by Reserve Bank of India (RBI) as an Authorized Dealer Category II. Prithvi Exchange offers a whole gamut of Foreign Exchange services like Money Changing, Money Transfer Services.

3.4.2.1.            We are called by different names say - Money Changers, Authorized Dealers, Forex Changers, Forex Dealers etc. Have Branches in prominent Cities and Tourists Centers like Chennai, Bangalore, Hyderabad, Goa and Mahabalipuram.

3.4.2.2.            Prithvi Exchange also serves its customers by selling global Sim cards, International Sim cards and International Travel Insurance. As a Traveller’s Best Friend, we provide foreign exchange, Travel insurance, International Sim cards and all services under single roof.

3.4.2.3.            Money Transfer division provides services to our customers through three channels- Western Union, Money Gram, and Xpress Money, through which customers can receive money from abroad.

3.4.2.4.            Prithvi Exchange is a Business Partner of American Express Traveler Cheques, Axis Travel Currency Cards, HDFC Forex Plus Cards, Western Union Money Transfer.

3.4.3.                  Money Gram: MoneyGram is a person to person money transfer service launched by M/s. MoneyGram International Ltd., Colorado, USA. The Money Gram brand is recognized throughout the world as a leading global payment services company. The diverse array of products and services they offer enables consumer and businesses to make payments and transfer money around the world. From New York to Russia or London to India - in more than 200 countries – Money Gram's money transfer service moves money quickly and easily around the world.

3.4.3.1.            Money Grams payment services also help businesses operate more efficiently and cost effectively. They offer their products and services to consumers and businesses through a worldwide network of agents and financial institution customers.

Ø     Products of Money gram:

·                      Global Funds Transfer         

·                      MoneyGram Money Transfer  global money transfer service allows consumers to send and receive money worldwide, primarily through a global network of third-party agents that use our money transfer systems. In addition to person-to-person (also known as cash-to-cash), customers have alternatives in money transfer delivery channels such as direct-to-account, ATMs and kiosks for deposit and cash receive, cash-to-a mobile phone and cash-to-card.

·                      MoneyGram Bill Payments Services their bill payment services allow consumers to make urgent payments or pay routine bills through our network to certain creditors (“billers”). We maintain relationships with billers in key industries which include the credit card, mortgage, auto finance, telecommunications, corrections, satellite, prepaid card and collections industries. Bill payment services also enable consumers to load and reload prepaid debit cards.

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Financial Paper Products

·                Money Order

MoneyGram is the second largest money order supplier. Money orders can be purchased at a vast nationwide network of retail and financial institution locations across the United States.

·                Official Checks

They offer Official Check Outsource Services which are available to financial institutions in the United States through our PrimeLink® service. Official checks are used by consumers where a payee requires a check drawn on a bank and by financial institutions to pay their own obligations.

3.4.4.       Xoom:

3.4.4.1.            Xoom is an online international money transfer service. We offer a secure, fast, and inexpensive way to send money from our website to friends and family in these countries:

3.4.4.2.            Recipients do not need a bank account or Internet connection to receive funds. Senders can fund their money transfer with a credit card, debit card or bank account.

3.4.4.3.            Xoom partners with select money transfer partners to provide a convenient, secure, and cost-effective means of sending money to family and friends abroad.

3.4.4.4.            Xoom moves your money fast, and keeps your security a top priority. Speed of money transfer service is subject to many factors, including:

Ø     Approval by the Xoom proprietary anti-fraud verification system

Ø     Funds availability from sender's payment account (checking, credit or debit card)

Ø     Recipient-country banking hours and banking system availability

Ø     Difference in time zones, weekend bank processing availability, and local bank holidays

Ø     Receiving agent hours of operation

3.4.4.5.            You can have funds withdrawn directly from your U.S. bank account to fund the money transfer, or pay using major credit cards. Recipients will be able to pick up the money in cash, have the money directly deposited into their bank account, or delivered to their door. Options vary by country.

3.4.5.      Xpress Money

• TO SEND MONEY THROUGH XPRESS MONEY:
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• SENDER VISITS XPRESS MONEY AGENT LOCATION. SUBMITS VALID ID CARD AND THE RECEIVER’S DETAILS.
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• HANDS OVER THE AMOUNT TO BE SENT AND THE TRANSFER FEE.
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• SENDER RECEIVES 16-DIGIT XPIN NUMBER.
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• SENDER COMMUNICATES THE 16-DIGIT XPIN NUMBER TO THE RECEIVER
• BRINGING HOME CLOSER
• TO RECEIVE MONEY
• RECEIVER VISITS THE XPRESS MONEYAGENT LOCATION.
• 
  
• SUBMITS VALID ID CARD AND XPIN NUMBER.
• 
  
• RECEIVES CASH.
• SENDER GETS INSTANT SMS NOTIFICATION UPON COLLECTION OF CASH BY RECEIVER.

Salient features of the International Money Transfer Service:

Money Transfer Service Scheme is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances into India such as remittances towards family maintenance and remittances favouring foreign tourists visiting India are permissible. No outward remittance from India is permissible under MTSS.

As a result of the collaboration of the Department of Posts, Government of India with the Western Union Financial Services and MoneyGram International, a state of the art International Money transfer Service is now available through the Post Offices in India, which enables instantaneous remittance of money from around 195 countries and territories to India. The recipients can in fact collect the money in minutes after the sender has made the remittance.

The service is targeted to particularly fulfill the needs of NRI dependent families in India, visiting International tourists and foreign students studying in India.

The International Money Transfer process is as follows:-

1. To avail of this Service, a remitter goes to any one of the Western Union / MoneyGram Locations in the countries in which the Service operates , fills up a form to send the amount and pays principal amount and charges. The sender gets a unique Money Transfer Control Number / Reference Number on a receipt after the transaction is sent through the system. Thereafter, the sender calls up his/her payee and gives information on the money sent. The Payee / Receiver goes to the Post Office , fills up a form to receive money, shows valid identification and receives money along with the receipt, once the transaction is verified. This entire process is completed within ten minutes.

2. The Payee receives the full amount in Indian Rupees. There is a maximum limit of 2500 USD that can be sent at a time as per applicable RBI regulations which must however be only for personal use.

3. Amounts upto INR. 50,000/- may be paid to the beneficiary in cash. Any amount exceeding this limit shall be paid by means of account payee cheque or credited directly to the Savings Account standing in the Post Office in the name of the beneficiary. However, in case of foreign tourists, higher amounts can be payable in cash.

4. Only 30 transactions can be received by a single beneficiary in a calendar year.

5. The Post Offices have been directed to treat the payee as "Most Favoured Customers", which ensures courteous and efficient service to them.

6. Under the KYC / AML / CFT guidelines issued by the RBI to prevent the system of cross border inward money transfer into India to be used by criminal elements for money laundering or terrorist financing activities, beneficiaries / recipients of the money transfers need to provide sufficient information necessary to establish their identity and proof of residence through reliable Govt issued documents like
 Election Card, 
 Driving License, 
 PAN Card, 
 Ration Card, 
 Aadhar Card etc,
a copy of which also has to be provided to the Post Office for receiving a transfer.

7. This International Money Transfer Service is safe, legal, fast & reliable. Also, it is approved by the Reserve Bank of India and is being provided by a Department of the Government of India i.e. the Department of Posts.

For further information / any assistance on the service, the Customer Service Centre at the Postal Directorate, Dak Bhawan, Sansad Marg,New Delhi. Pincode: 110 116,
Tel : 91-11-23096114 , Fax: 91-11-23096108 may be contacted. 
E-mail: indiapostcsc@rediffmail.com (For Western Union IMTS)
indiapost.moneygramcsc@gmail.com (For MoneyGram IMTS)

International Money Transfer Service in Post Offices in association with MoneyGram

The Department of Posts has entered into an International Cooperation Agreement with MoneyGram Payment Systems, Inc., USA to offer to the general public the MoneyGram International Money Transfer Service through selected Post Offices in India. This service has been launched on 29th September 2011 by Hon’ble Minister of Human Resource Development, Communications & IT in the presence of Hon’ble Minister of State for Communications & IT.

Salient features

1. The MoneyGram International Money Transfer Service is a fast, simple and convenient method to transfer money from one place to another.

2. In India, a person can only receive money from abroad through this service.

3. This service operates as per the guidelines of the Reserve Bank of India.

4. Only personal remittances such as remittances towards family maintenance and remittances favouring foreign tourists visiting India are permissible under this service.

5. Trade related remittances, remittances towards purchase of property, investments or credit to NRE Accounts, etc. or donations/contributions to charitable organizations are not (NOT) permitted to be routed through this service.

6. A single remittance under this service should not exceed USD 2500 or its equivalent.

7. Not more than 30 remittances are allowed to be received by a single individual beneficiary through this service in a calendar year.

8. Payments to the beneficiaries in India should be made in Indian Rupees at ongoing exchange rates.

9. All payments exceeding Rs.50,000 should be paid only by Cheque or by direct credit in the account of the recipient.

10. All KYC/AML/CFT norms/rules/regulations/instructions, as mentioned in Reserve Bank of India Master Circular No. 14/2011-12 dated 01 July 2011, as amended from time to time, and all the requirements under the provisions of the Prevention of Money Laundering Act, 2002 and the rules, regulations made there-under, are applicable to the remittances received under this service.

11. Departmental IMTS Customer Service Centre is functioning in Dak Bhawan, New Delhi. It can be contacted on Phone No. 011-23096114 and on email id indiapost.moneygramcsc@gmail.com