Remit2India introduces Fortune Offer

The Remit2India Fortune offer introduced this month allows users to avail extra paisa on completed transactions. This offer is valid on  remittances in the following currencies USD / GBP/ AUD and EUR.

The offer slabs are:-

Currency

Transaction Amount

Extra Paise*

USD

50 – 5000

5

GBP

> = 50

15

AUD

> = 50

15

EUR

> = 50

15

This offer is not valid for transaction amount above USD 5000, however there is no upper limit for other currencies. The extra paisa benefit is payable to the beneficiary in INR only

Make the  most of this, offer ends on 4th October 2012

For more information visit bit.ly/fortunepromo

Positive sign for times to come: Indians in Olympics

The Indian contingent is steadily making inroads at the ongoing London Olympics. The first medal came in the form of Gagan Narang winning the Olympic Bronze Medal in the Men’s 10m Air Rifle Event couple of days back.

While tennis and hockey have disappointed, hopes are alive with boxers, shooters and shuttlers (Both Sania Nehwal and Parupalli Kashyap have advanced).

Back home a billion people wait to see their heroes perform well and win more medals. In the true spirit of the game it’s overwhelming to see the interest of people in India growing for sports beyond cricket, a positive sign for times to come.

Let’s hope India wins more medals and keeps its spirits high.

NRIs sent home $4.8 bn. (between April and May’12)

To take advantage of the weakening rupee vis-a-vis dollar and higher returns, non residents have pumped in a record $4.753 billion in local bank deposits during April and May, seven times higher than the same period last year.

Indians working abroad prefer NRE (non-resident external rupee accounts) scheme the most as the scheme offers interest rates akin to high domestic deposit rates. This scheme saw an net inflow of $5.502 billion in the two months, compared to an net outfow of $133 million in the corresponding period in 2011, according to Reserve Bank of India’s latest data published.

The non-resident ordinary rupee ( NRO) account, which is non repatriable or strictly for NRI’s local use has seen a modest inflow of $46 million.

Reserve Bank of India has deregulated the interest rates on NRI deposits in December last year which prompted NRIs to invest $4.658 billion between January and March this year which was 40% of total NRI flow of $11.9 billion in 2011-12.

 

Remit2India’s Power20 – Get $10* EXTRA on each of your first two transaction

If you have just registered with Remit2India.com or registered before but haven’t yet used the services, Remit2India brings you a limited period offer to ensure that you get the best when you send money through it. Get up to $20 extra while sending money home all through this month. This special offer is valid till 30th March 2012.

So, hurry and make sure that you make the most of this offer. To know more click http://bit.ly/r2ip20

*Conditions Apply

Advantage for NRIs

The Reserve Bank on Wednesday said Indians who have non-resident accounts in the country can now hold them in any currency which is fully convertible.

The move is likely to help NRIs/Persons of India Origin as it will give them more options in the holding of accounts, and lessen the risk from fluctuations in major currencies.

Earlier, FCNR(B) account holders were allowed to hold accounts in only certain currencies such as the Pound Sterling, US dollar, Japanese yen, euro, Canadian dollar and Australian dollar.

“…it has been decided that Authorised Dealer banks in India may be permitted to accept Foreign Currency (Non-Resident) Account (Banks) deposits in any permitted currency.

It may be noted that ‘Permitted currency’ for this purpose would mean a foreign currency which is freely convertible,” RBI said in a notification.“The Committee to Review the Facilities for Individuals under Foreign Exchange Management Act, 1999 in its Report has recommended that FCNR(B) accounts may be permitted to be opened in any freely convertible currency,” RBI said.

RBI also said that any citizen who was earlier residing in a foreign country can own or transfer property or other assets in that nation if it was acquired during the time of his residence there.

“… a person resident in India is free to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India,” RBI said.In a clarification issued by it regarding repatriation of income and sale proceeds of assets held abroad by NRIs who have returned to India permanently, RBI said an investor can retain and reinvest the income earned on investments made under the Liberalised Remittance Scheme.The bank said that clarifications are as per relevant sections of the Foreign Exchange Management Act of 1999.

Source: The Hindu

Remit2India’s FXvoucher ‘the power to get EXTRA’ is back


Currency fluctuationshave been one of the prime concerns for NRIs when they look at sending money home. If one looks at the trend of the US$ in the past few months, it has been extremely volatile. From INR 44.5 in Feb’11 to touching highs of INR 49.3 a few days back against 1 US$, the fluctuations impact a NRI. This is true for most currencies and markets around the world. Compare that with the increasing inflation that has gone up from 1.5% – Feb’11 to 3.75% – Sept’11 in the US. The Inflation in India has also peaked to 8.43% in recent time thereby increasing the cost of living. NRIs who remit money to their family back home need to shell out extra, which becomes an expensive affair.The volatile nature of these currencies coupled with increasing inflation makes a NRI anxious to maximize his remittance.
At Remit2India, we understand this concern and to aid it, we have launched the FXvoucher– an assured way to earn EXTRA money. It helps a NRI gain 3 times as much back of the initial investment he makes. This festive season we re-introduce the FXvoucher with improved features and hope our NRI customers make the most of it.

Click here to purchase the FXvoucher

Surge in remittance as rupee hits 2-year low

With the Indian rupee continuing to decline against a dollar-pegged dirham, money transfer companies in the UAE recorded brisk business, with remittance volume surging by 20 pc over the past two weeks. On Wednesday, the rupee ended weaker after dropping to its lowest level in over two years as investors reduced their exposure to risk ahead of the US Federal Reserve’s policy meeting, where it is expected to unveil steps to revive a flagging US economy.

The partially convertible rupee ended at 13.6 per dirham or 48.325/335 per dollar, 0.58 per cent weaker than Tuesday’s close of 48.05/06 and after touching 48.34 intraday — its weakest since September16, 2009. The rupee has declined almost 10 per cent since it recent peak on July 27 when it was trading at 44 per dollar.

On Wednesday, the rupee opened stronger at 47.99 per dollar and rose to 47.8375 driven primarily on expectation of robust dollar inflows, traders said.

A flagging euro and choppy domestic equities, which slipped 0.2 per cent in volatile trade, added to the rupee’s woes, and market analysts predict that if the eurozone financial issue persists, the Indian currency will cross the two-year low of 48.47 per dollar and head further south to hit 50 per dollar.

In 2010, remittances by the UAE-based migrant workers grew 11 per cent to $10.54 billion from $9.51 billion in 2009. Total expatriate workers’ remittances from the GCC rose to $63.75 billion in 2010 from $60.03 billion in the previous year, according the World Bank, reached $325 billion from $317.23 billion in 2009.

The International Monetary Fund predicted that outward remittances from the GCC, which has over 12 million expatriates, are estimated to reach $74.9 billion in 2011. India, the largest recipient country, in terms of both global and GCC remittances, accounts for roughly 50 per cent of money transferred from the Gulf, estimated to be between $25 and $30 billion in 2010.

Source: GulfNews

Remit2India celebrates NRI Family Day

Remit2India, as part of its endeavour to build a bond with the families of NRIs, recently celebrated another chapter of its ‘Remit2India – NRI Family Day’ in Bengaluru. Known for being the pioneer in offering an online money transfer service for NRIs, the Remit2India – NRI Family Day was created as an occasion to celebrate & bond with the families who have their loved ones across the globe. Touted as an evening full of fun & entertainment, the event lived up to the hype with over 300 families in attendance. Held at the Palace Grounds in Bengaluru, it included live performances by Indian Idol star Rehan Khan as well as Bollywood actress Smiley Suri.

Also part of the evening celebrations was a range of activities from free health check-ups, tattoo artists, Tarot card readers, live international video chats etc. The icing on the cake was an elaborate spread of delicacies to suit the different tastes of the family members.

Speaking at the event, Avijit Nanda, President – TimesofMoney said “Every one of us miss not having our loved ones around. The Remit2India NRI Family Day is our way of trying to bridge the physical distance between the NRI & his family in India. We are overwhelmed with the response & really delighted to see the families having such a wonderful time”

The event would be extended to other cities. Key partners for the Bengaluru event include Clarks Exotica, Life Insurance Corporation, Mallya Hospital, Volkswagen, Chromozome Network, Jet Airways & Times Card.

Inheritance of agricultural land by NRIs

Indian Laws governing the investment opportunities by NRIs are governed by Foreign Exchange Management Act, 1999 (FEMA), according to which NRIs and PIOs in India (non-resident Indians and Persons of Indian Origin) are prohibited from buying agricultural land in India. Under the general permission granted by Reserve Bank of India, properties other than agricultural land, farm house and plantation property can be acquired by foreign citizen of Indian Origin provided the purchase consideration is met either out of inward remittance in foreign exchange through normal banking channels or out of funds from the purchaser’s NRE (Non Resident External Rupee Account) or FCNR ( Foreign Currency Account) accounts maintained with Indian banks. The reason relating to the prohibition clause, about agricultural land is mainly to protect farmers from foreign conglomerates looking to buying up agricultural land.

Indian NRIs cannot buy agricultural land in India and this is applicable to the whole of India. Approval is required from the Reserve bank of India which one can assume is not easily available and this would depend only on individual circumstances. In addition to that, some State Governments in India have rules that allow only farmers to buy agricultural land in their State and this restricts even Indian citizens from buying agricultural land unless they come from a family of farmers. Therefore, one cannot complain that due to the above prohibition, NRI investment options have been mitigated. On the other hand, NRIs who have acquired foreign citizenship, are sometimes mislead into believing that they cannot continue to hold agricultural land as foreigners cannot hold agricultural land in India. But this is not all encompassing, because Indian NRI’s can continue to hold agricultural land or any other property they own in India provided they had acquired them legally before accepting foreign citizenship. NRIs and Foreign Citizens of Indian Origin cannot acquire agricultural land, even by way of gift. However they can acquire agricultural land by way of inheritance and an agricultural property or land thus acquired can only be sold to a resident in India and not to an NRI.

Just like every cloud has a silver lining, therefore, even if it seems like there are a lot of obstacles involved in the process of inheriting an agricultural land as an NRI, but eventually, the initiative generates one of the biggest advantages eliminating the hurdle of paying any inheritance tax for NRIs. Also, NRIs can sell the inherited agricultural land to a resident Indian, but they will have to pay capital gains tax on the sale proceeds. Once the tax is paid the remaining sale proceeds can be remitted abroad which again should not exceed 1 million USD in any financial year. Therefore, these are a few attributes an NRI must keep in mind while deciding on investment strategies to the best of their suitability. Therefore, the conclusion lies in the fact that, inheritance of agricultural land is not covered by the ban on NRIs, but in fact it is an exception to the rule.

Source:- blogs.siliconindia.com

Remittance and reform

Healthy remittance income that has undoubtedly averted in many ways a devastating financial crisis in the country is also providing a toxic cushion for politicians to brush aside much-needed policy reforms for boosting Nepal’s shrinking productivity and competitiveness, a World Bank study released on Tuesday has argued. This may sound odd, but there are many convincing points here. It is undeniable that remittance is the major contributor to the healthy foreign currency reserves that Nepal has long enjoyed and that has enabled it to withstand the immediate impact of a worsening balance of payments deficit.

Remittance-fed reserves have also helped the government settle its international payments obligations, such as extending import financing and repaying external debt, without much headache or effort. More than that, remittances, which currently contribute roughly one-fourth of the GDP, have greatly helped to keep consumption afloat even when the economic growth rate was flat and unemployment was rising.

It is indisputable reality that had there been no remittance inflow at the level the country now enjoys, Nepal’s foreign currency situation would have plunged into serious trouble a long time back. Under that scenario, it would have compelled the government to take urgent reform measures aimed at curbing foreign currency outflow, such as checking imports and boosting exports, through the removal of barriers that crop up in the development of the manufacturing sector. The huge reserves buildup via remittances has given ground for the government to overlook very essential reforms for tackling problems such as rigid labor laws, labor militancy and dwindling investments that have added to manufacturing sector woes.

In addition, the World Bank study has also brought out a mind-blowing ‘vicious policy circle’ of healthy remittance helping the state distance itself from economic reforms which in turn is inducing low growth, low job creation, and ultimately fueling more migration. The study also warns that the toxic combination of high remittance inflow and lack of policy reform has exposed Nepal to the risk of Dutch Disease, an unnatural growth of a certain sector that appreciates the currency and hurts manufacturing and exports. The study has rightly reckoned that remittance-fueled demand and subsequent price rises are ultimately raising the cost of exportable items, thereby leading to loss of competitiveness.

We believe that the gentle but powerful recommendation of the study that the government make migration an option rather than a necessity for survival, needs to be well taken. We have heard many good things about what remittance has done but it’s high time we made an in-depth assessment of the possible negative social and economic consequences that it might bring in the long run.

Source: MyRepublica

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