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 30th April
/ 31st October to IBD, CO, Mumbai, and confirm this to their ROs.
- 1.5.2.
Setting up of Authorised Dealers, Money
Changers etc. is governed by RBI as under 1.4 above.
- 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:
COUNTRY: UNITED ARAB EMIRATES
|
SL.No
|
NAME OF THE EXCHANGE HOUSE
|
TELEPHONE NO & E-MAIL
|
|
|
1
|
AL RAZOUKI INTNL EXCH CO LLC, DUBAI
|
|
|
|
2
|
AL AHLIA MONEY EXCHANGE, BUREAU, ABU DHABI
|
|
|
|
3
|
AL ANSARI EXCHANGE ABU DHABI
|
|
|
|
4
|
AL FARDAN EXCHANGE, ABU DHABI
|
|
|
|
5
|
AL ROSTAMANI INTERNATIONAL EXCHANGE , DUBAI
|
|
|
|
6
|
ALUKKAS EXCHANGE, DUBAI
|
|
|
|
7
|
AL GHURAIR EXCHANGE, DUBAI
|
|
|
|
8
|
EMIRATES INDIA INTERNATIONAL EXCHANGE , DUBAI
|
|
|
|
9
|
HABIB EXCHANGE CO LLC, ABU DHABI
|
|
|
|
10
|
LEELA MEGH EXCHANGE, DUBAI
|
|
|
|
11
|
LULU INTERNATIONAL EXCHANGE LLC, DUBAI
|
|
|
|
12
|
ORIENT EXCHANGE CO. LLC, DUBAI
|
|
|
|
13
|
UAE EXCHANGE CENTRE LLC, ABU DHABI
|
|
|
|
COUNTRY:QATAR
|
1
|
EASTERN EXCHANGE EST., DOHA
|
|
|
|
2
|
AL ZAMAN EXCHANGE WLL, DOHA
|
|
|
|
COUNTRY:SULTANATE OF OMAN
|
1
|
LAXMIDAS THARIA & VED EXCHANGE CO LLC., RUWI,
|
|
|
|
2
|
MUSANDAM EXCHANGE, RUWI
|
|
|
|
3
|
OMAN & UAE EXCHANGE CENTRE LLC., ALHAMRIA
|
|
|
|
COUNTRY:KINGDOM OF BAHRAIN
|
1
|
BAHRAIN FINANCING CO., BAHRAIN
|
|
|
|
2
|
BAHRAIN INDIA INTERNATIONAL EXCHANGE CO BSC (C)
MANAMA
|
|
|
|
3
|
ZENJ EXCHANGE CO. WLL
|
|
|
|
COUNTRY:KUWAIT
|
1
|
BAHRAIN EXCHANGE CO.
|
|
|
|
2
|
KUWAIT BAHARAIN INTERNATIONAL EXCHANGE CO
|
|
|
|
3
|
UAE EXCHANGE CENTRE WLL
|
|
|
|
4
|
AL MUZAINI EXCHANGE CO KSCC, KUWAIT
|
|
|
|
COUNTRY:KINGDOM OF SAUDI ARABIA
|
1
|
ALAMOUDI EXCHANGE COMPANY, JEDDAH
|
|
|
|
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:
3.4.1.1.
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:
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.
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:
- SENDER VISITS XPRESS
MONEY AGENT
LOCATION. SUBMITS VALID ID CARD AND THE RECEIVER’S DETAILS.
- HANDS OVER THE AMOUNT TO BE SENT AND
THE TRANSFER FEE.
- SENDER RECEIVES 16-DIGIT XPIN NUMBER.
- 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.
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.
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
,
it has to maintain additional CET1 capital surcharge in India as applicable to
it as a G-SIB, proportionate to its Risk Weighted Assets (RWAs) in India.
