Customers of Fino Payments Bank will be able to receive money sent from overseas, as it has received approval from the Reserve Bank of India (RBI) to offer the international money transfer service.
Fino Bank has received approval from the RBI to begin international money transfer activities under the Money Transfer Service Program (MTSS), the bank said on Monday.
The lender will undertake inbound cross-border money transfer activities in association with a foreign principal, details of which are being worked out.
Fino Bank’s customer segment in the middle of the pyramid is for families of many people working in foreign countries, Fino Bank said.
Money remitted by family members abroad can now be withdrawn directly at the nearest micro-ATM or at the Fino Bank neighborhood shopping point compatible with Aadhaar Payment Services (AEPS).
“Continuous product innovation is one of the fundamental pillars of our model. International remittances further enhance our transaction-based product offerings.
“We will be ready to offer money transfer services to our customers by the first quarter of fiscal 23. In line with our digital strategy to improve the customer experience, we will also consider having this product on. our mobile app as well, ”said the COO of Fino Payments Bank. Major Officer Ashish Ahuja said.
Fino merchants provide services such as opening new account, depositing cash, transferring money, withdrawing cash through micro-vending machines or AEPS mechanisms, collect cash on behalf of various institutional clients, among others.
As a new offering, international remittances will help increase the income of merchants and the bank, which will strengthen Fino’s strong distribution network.
Ahuja said there is an important remittance corridor in states like Gujarat, Punjab, Kerala, Uttar Pradesh and Bihar.
“We have already intensified our merchant presence in all these geographic areas. We are therefore convinced that the new offer will gain ground quickly.
“We also plan to consolidate more subscription savings accounts as a result of this initiative, as customers would prefer to park the remitted money in a Fino Bank account itself,” he added.
The payment bank said that in the future it would be open to partnering with more leading money transfer operators (MTOs) to expand its horizon in different countries.
The bank said it also plans to launch money transfer services soon. Fino Bank’s network of more than eight lakh merchants across the country, as of September 30, 2021, offers ease of access to domestic and cross-border remittances, he said.
Fino cited a recent World Bank report that said India is expected to be the world’s largest remittance recipient in 2021, with expected revenue of $ 87 billion.
This figure is expected to increase by 3% in 2022 to reach 89.6 billion dollars, as large numbers of workers are expected to return to the Gulf countries, according to the World Bank.
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