Why Are Important Documents Required For Money Transfers?

Importance of Documents for Online Money Remittance

Transferring money to India requires you to present few important documents. But some financial institutions can ask you for other supporting documents in addition to the regular documents. A list of documents required by a money transfer agency can include photocopy of a driving license, proof of residency, passport, or a proof of income like a bank statement or pay slips.

A lot of times, we have heard complains from our customers that there are a lot of questions asked, many documents to be shown and multiple verification calls. Thing to understand here is that all of this is for a reason. Fraudulent transactions are at a rise and we need to ensure that our customers’ money is safe. This is the reason we have stringent compliance checks and strict verification processes, that may demand a lot of documents.

If you wonder why these documents are so important, have a look at the two main reasons mentioned below:

  • Verification of Identity

Financial institutions require additional documents in order to cross verify the identity and income structure of the money transfer applicant. Cross verification is most commonly conducted by financial institution mainly banks and money transfer agencies, as without the confirmation of a sender, the transaction cannot be completed. Also, to prevent delays in money transfers, one should provide genuine documents for verification.

  • To Detect and Prevent Frauds

To prevent illegitimate use of funds, you need to provide authentic and original documents to the transfer agency or a bank. These documents are collected to avoid scams like money laundering, currency counterfeiting and black money transactions. For example, one can transfer an unauthorized amount of taxable income from one bank to another, regardless of any country, without actually paying the taxes. To avoid and eliminate this, documents presented by you aids the banks to trace illegal activities or block an ongoing fraudulent transaction.

Therefore, it’s necessary for banks and other remittance companies across the world to ask for a set of documents while signing up for their services. It’s no different than your bank asking for KYC (Know Your Customer) documents for opening up a checking, savings or a current account. For further information on the required documents and our services, contact our customer care executive by sending an e-mail to info@remit2india.com or visit www.remit2india.com

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.


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Banks flush with NRI deposits

With the rupee trading above Rs 50 against the dollar, remittances from non-resident Indians are surging. In October, the local currency was trading at around Rs 45. Banks like Kotak Mahindra Bank is witnessing a 40-50% y-o-y growth in remittances, while other smaller banks are seeing their NRI deposits growing by 10-30%. The spike in remittances is also partially attributed to the financial crisis in Europe and political unrest in West Asia.

With the rupee breaching the 50-mark, deposits in dollar accounts such as foreign currency non resident account bank schemes (FCNR) (B) have earned an annualized 40% return. To make it sweeter, such accounts can now be held in freely convertible currency. Currently, currencies designated by the Reserve Bank include dollar, pound sterling, yen, euro, Canadian dollar and Australian dollar.

Kerala-based banks have been the biggest beneficiaries of the remittance windfall. Nearly 21% of the deposit base of Federal Bank is accounted by NRIs. For the second quarter, the bank has seen a 30% growth in NRE (non resident external rupee account) and FCNR accounts. “Nearly 7% of pan Indian remittances come through our bank and the rupee weakening has given a further boost,” says A Surendran, head, international banking, Federal Bank. The bank is expecting a 30% growth in its non resident business this fiscal.
Similarly, the non-resident deposit business of South Indian Bank has grown by 20% for the half year ended September 2011. To top that, many Indian banks had offered a 9% deposit schemes at the beginning of the year and with NRO (non resident ordinary rupee account) rates pegged to domestic rates, banks saw a heavy flows into such accounts. For instance, Tamil Nadu’s Karur Vysya Bank has seen a 12% growth in its NRO deposits quarter-on-quarter this fiscal. “NRIs are resorting to arbitrage on account of a weaker rupee and better interest rates on deposits in India when compared to banks abroad,” says N Venkataraman, managing director and chief executive officer, Karur Vysya Bank.

Importantly, the role of NRIs in the Indian banking system has widened. “They are looking at multiple benefits and not just windfalls from exchange rate fluctuations. This includes opportunities for investment in real estate and mutual funds,” says Praveen Kutty, head, retail and SME banking, Development Credit Bank. DCB has seen a growth of 20% in non-resident deposits q-o-q this fiscal and nearly 10% of the retail deposit base of the bank is accounted by Indians abroad. To cash in on such investment opportunities, South Indian Bank has launched portfolio management services for NRIs in association with Geojit BNP Paribas.

“Unlike the previous generation, many of the present generation living abroad are looking to return to India at some point. They are making investments in apartments and so nearly 50-60% of their savings gets channelized to India,” says N Kamakodi, chairman and managing director, City Union Bank.

It’s also profitable to have NRI customers as the average balance maintained by such customers in savings bank and term deposits is much higher than their domestic counterparts. While average balances in CASA of Indian account holders are Rs 35,000, NRIs tend to park over Rs 1 lakh in NRO and NRE savings accounts.

Source:The Times of India

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

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.

RBI panel for hassle-free remittance, investment

The Reserve Bank of India (RBI)-appointed panel suggested significant liberalisation of forex regulation to allow hassle-free remittances and overseas investments. “To enable hassle-free remittances by resident individuals, banks may be advised by the RBI not to insist on the submission of form 15 CA/15 CB for any remittances under the Liberalised Remittance Scheme (LRS),” the report of the panel headed by former RBI Deputy Governor KJ Udeshi said.

The report of the Committee to Review the Facilities for Individuals under Foreign Exchange Management Act (FEMA), 1999 said over a period of time, the FEMA rules now contain contradictory provisions and there is also a need to make definitions uniform and consistent across FEMA.

The committee is of the considered view that the procedural ‘knots’ in the system need to be untied to enable the present forex liberalisation to be effective and in the absence of untying of these knots, any further forex liberalisation will not be meaningful.

The report also noted that instead of an erstwhile single regulator (the RBI), we now have a multitude of regulators, each interpreting FEMA in his own way.
General permission, it said, may be granted to resident individuals to acquire shares of a foreign company in part or full consideration of professional services rendered to the foreign company or in lieu of Director’s remuneration.
Besides, it suggested, general permission may be granted to resident individuals to acquire qualification shares of an overseas company for holding the post of a director without the existing limitations.

It is to be noted that the committee was set up, following the announcement in Annual Monetary Policy for 2011-12 in May. “Recognising the need for facilitating genuine foreign exchange transactions by individuals – Residents/Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) – under the current regulatory framework of FEMA, Reserve Bank has constituted a Committee under the Chairmanship of KJ Udeshi,” RBI Governor D Subbarao had said in the Annual Monetary Policy for 2011-12.

The objective of the review was to identify areas for streamlining and simplifying the procedure so as to remove the operational impediments and assess the level of efficiency in the functioning of authorised persons, including the infrastructure created by them.

Among other recommendations, Indian resident employees or directors may be permitted to accept shares offered through an ESOP Scheme globally.
It also suggested that the Portfolio Investment Scheme needs to be reviewed in its entirety and there is no need for continuation of the existing scheme.

Source:-Business Standard

Remit2India’s MOR(Money on Referral) Hat-Trick Offer is back

And certainly with a bang…

Remit2India gives you MOR reasons to smile and earn with its referral program ‘Money On Referral’ (MOR). All one has to do is refer his/her NRI friends and he/she can earn Rs. 1,000/- per referral. Your friends also get Rs. 500 for using our service through your referral.

And the good part is one can refer as many NRI friends as possible. Which means more the friends one refers, more money he/she can earn.

So what are you waiting for. Start referring now and make an unlimited amount of money!

The customer also has the choice to redeem this as extra money sent as remittance or even as a Gift Voucher against a host of gifting items from a special catalog.

So, spread the smile with Remit2India’s unique referral program ‘MOR’.

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