IndusInd Bank has announced its collaboration with Wise, a global technology company specializing in global money movement and management. IndusInd bank partners with Wise for inward remittance services to NRIs residing in the United States and Singapore. In this blog, we will talk more about this collaboration and how it will benefit the NRI customers.
SBNRI has partnered with Nium: Global Payment Services to facilitate instant online funds transfer to India at a minimal cost.
IndusInd Bank Partners with Wise for Inward Remittance
IndusInd Bank has declared its partnership with Wise to facilitate online inward remittance services for Non Resident Indians (NRIs) residing in the United States and Singapore. Indus Fast Remit (IFR), the bank’s own multi-partner remittance service platform, has joined forces with Wise Platform to provide a multi-currency inward remittance service tailored for NRIs. The partnership will offer NRIs a faster and cheaper way for international transfers to India directly through the Indus Fast Remit platform.
Benefits of IndusInd Bank and Wise Partnership
The US and Singapore-based NRIs will enjoy the following benefits on account of the collaboration of IndusInd Bank and Wise.
- The collaboration between IndusInd Bank and Wise aims to provide NRIs living abroad with faster, more cost-effective, and convenient international transfers to India, directly accessible through the Indus Fast Remit platform.
- Powered by Wise Platform’s user-friendly APIs, IndusInd Bank’s NRI customers can easily send money in USD and SGD currencies to their recipients in India without any added exchange rate charges or hidden fees.
- 55% of Wise’s payments are instant. As a result of this partnership users will be able to transfer funds instantly.
- Along with this, customers will get complete visibility of their payment status and estimated arrival time—all through a seamless online process that eliminates the need to physically visit a bank branch or undergo cumbersome paperwork.
- Traditionally, transferring money abroad through conventional financial methods often involves high charges and undisclosed fees.
- A study conducted by Capital Economics revealed that individuals sending money to India from overseas paid over ₹21,900 crores in foreign exchange fees in 2020, of which approximately ₹7,900 crores were hidden as exchange rate markups on currency conversions, and the remaining ₹14,000 crores were spent on transaction fees.
- Through this collaboration, NRIs can conveniently book remittance transactions on the IndusInd Bank Indus Fast Remit platform, with the funds being routed under the Reserve Bank of India’s Rupee Drawing Arrangement (RDA) scheme through Wise’s RDA partners in India.
- The Indus Fast Remit platform also facilitates the opening of Non-Resident External (NRE)/ Non-Resident Ordinary (NRO) accounts with IndusInd Bank, in addition to the remittance services.
What is the Indus Fast Remit Platform?
Indus Fast Remit is an innovative digital platform designed to facilitate remittances to India, particularly for NRIs. Users of Indus Fast Remit will enjoy the convenience of a single sign-on and a seamless digital journey, with the added advantage of choosing from multiple Exchange Houses/Money Transfer Companies that offer competitive rates. This remittance service is made possible through licensed overseas Exchange Houses/Money Transfer Companies, ensuring that the transferred amount reaches the beneficiary’s account in India in accordance with the RBI’s RDA scheme.
What is Inward Remittance?
An inward remittance refers to the transfer of funds from an overseas bank account to a local bank account. This transaction takes place when an individual in India receives money in their domestic bank account from a foreign relative, a domestic startup secures funding from investors located outside India, or a business receives payment from clients situated abroad.
FEMA Guidelines for Inward Remittance
Listed below are the FEMA guidelines for inward remittance:
- The following are the various purposes for which inward remittances are typically made:
- Education
- Medical treatment
- Travel expenses
- Investments
- Donations
- Living expenses
- Financial support
- As a gift
- To facilitate each inward remittance, a Foreign Inward Remittance Certificate (FIRC) must be provided by the recipient’s bank. The FIRC contains essential details such as the names and account numbers of the sender and recipient, the purpose of the transfer, and the exchange rate applied during the transaction, among other relevant information.
- There are two methods by which individuals in India can receive inward remittances: the Rupee Drawing Arrangement (RDA) and the Money Transfer Service Scheme (MTSS).
- Under the RDA, there is no prescribed limit on the amount of inward remittances for personal purposes.
- Under the MTSS, each inward remittance is limited to $2500, and a beneficiary can receive a maximum of 30 inward remittances within a calendar year.
Note- It is important to note that FEMA guidelines governing inward remittances are subject to regular updates. Therefore, it is advisable to visit the official RBI website or consult with your bank to stay informed about the latest regulations concerning inward remittances.
To Sum Up
This partnership between IndusInd bank and Wise will offer NRIs a comprehensive solution for seamless transfers to India, ensuring lower costs and competitive conversion rates from two countries on a global scale.
Contact SBNRI
You can get preferential rates on currency conversion and a host of benefits when remitting from overseas to India, or other way around. At SBNRI, we keep an eye on the exchange rate on a regular basis to help NRIs with their remittances and investment. You can download SBNRI App to connect with our experts. You can also click on the button below to ask any questions. Visit our blog and YouTube Channel for more details.
