HDFC Bank starts online money transfer to India for NRIs
Mumbai June 21, 2006
HDFC Bank today launched a service that allows non-resident Indians (NRIs) to send remittances online through the Reserve Bank of India's real time gross settlement system (RTGS).
The online money transfer to India through RTGS will be available for remittances from the USA, UK and Singapore, which will ensure the amount is credit to the recipients' accounts the same day or latest the next day, HDFC Bank
said. In normal online remittances, it takes 3 days for the recipients' accounts to get credit.
This is an attempt by HDFC Bank to get more fee income through an increase in its share in online remittances, which is currently dominated by ICICI Bank and remit2india.com. Of the $22 billion inward remittances in 2005-06, about $2.5 billion were sent through online services. Half of the remittances are made through cheques and wire transfers and the balance through money transfer services like Western Union Money Transfer.
Shyamal Saxena, senior vice president (retail banking), HDFC Bank said: "through Quickremit, the bank's NRI customers will be able to credit funds directly to the beneficiary's bank account even in other banks, as desired
by the remitter."
Almost 90% of the online transfers happen from the US because the NRIs there are more net savvy and belong to a younger age group. There is hardly any online remittance from the countries in the Middle East as the NRI population in this region is not so used to the internet. There are about 20 million NRIs in the US, the UK and the Gulf.
"Most of the online transfers happen at the start of a month and towards the beginning of the second fortnight of a month reflecting the salary cycles in the US," Suresh Rangarajan, chief marketing officer at Remit2India.com, said.