RBI allows Fino Payments Bank to commence Cross Border Remittance via Money Transfer Service Scheme

3 Jan 2022 , 05:10 PM

Fino Payments Bank  has received the RBI approval for commencing International Remittance business under the Money Transfer Service Scheme (MTSS). The Bank will be undertaking inward cross-border money transfer activities and will be partnering with an Overseas Principal.

Also, the Bank has received the approval to partner with one of the largest global remittance service providers as its Overseas Principal.

Major Ashish Ahuja, the Chief Operating Officer said, “Continuous product innovation is one of the core pillars of our model. International remittance further enhances our transactions based product offerings. We will be ready to offer the inward remittance services to our customers by Q1 FY23. In sync with our digital strategy to enhance customer experience, we will also look at having this product on our mobile application as well.”

Ahuja added, “There is a major inward remittance corridor in states like Gujarat, Punjab, Kerala, Uttar Pradesh and Bihar. We already have scaled up our merchant presence in all these geographies. We are therefore confident that the new offering will gain traction very quickly. We also expect to shore up more subscription based savings accounts due to this initiative as customers would prefer to park the remitted money in a Fino Bank account itself.”

Going forward Fino Bank will be open to partnering with more leading money transfer operators (MTOs) to widen its horizon across different countries. The Bank also has plans to commence outward remittance services soon.

The customer segment of Fino Bank at the middle of the pyramid is targeted to families of many of the people working in foreign countries. They typically remit money back home to meet regular family expenses. They would already be using the services of Fino Bank like micro-ATM or Aadhaar Enabled Payment Services (AEPS) in some form. With this product, they will now be able to directly withdraw money remitted by their family members abroad at the nearest Fino Bank neighbourhood merchant point.

On Sensex, Fino Payments stock ended at Rs381.45 per piece up 2.9%.