InstaReM, a Southeast Asia-based digital cross-border money transfer company, has launched outbound money transfer operations from India. This means individuals and businesses in India will be able to make fast, convenient and cost-effective overseas money transfers from India for transactions pertaining to business or private visits, overseas education, medical treatment and other areas.
InstaReM’s outbound money transfer services from India are being offered in partnership with DCB Bank Limited, an Authorized Dealer Category-I Bank, as per the Reserve Bank of India’s (RBI) governing conditions.
Singapore-headquartered InstaReM, co-promoted by Prajit Nanu, is the first non-bank entity to offer outward remittance service from India. The company received its regulatory approvals from the RBI in September 2017. Over the past six months, InstaReM has built a robust technology platform to facilitate smoother payments and service the increased volumes it is expecting as a result of this expansion.
“People in India are increasingly engaging with their overseas counterparts for business, leisure, medical, education, entertainment-related activities, which involve transfer of money overseas,” Mr. Nanu said. “Traditional ways of transferring money via banks and money transfer operators from India have been expensive due to high transfer charges along with hidden fees that are not known to customers. They are also time-consuming and not transparent. InstaReM is addressing this challenge globally with an innovative approach. With our automated platform and deep relationships with banks worldwide, we are able to offer transparent international money transfers at a fraction of costs compared to the traditional players.”
Outbound remittances by Indians touched US$1.2 billion in January, according to RBI. Traditional international money transfers from India are expensive and opaque. The World Bank estimates the average cost of cross-border remittances at 7.09 per cent of the amount sent globally. In contrast, InstaReM effects overseas money transfers at mid-market FX rate—a midpoint between the “buy” and “sell” rates of currencies in the forex markets—which is sourced directly from Reuters, and adds absolutely no margins to forex conversion rates. It transparently charges a nominal fee to cover the overheads of processing transactions. Notably, the World Bank lists InstaReM as one of the most cost-efficient money transfer platforms across many corridors from Australia and Singapore.