Fino Payments Bank has got RBI clearance to begin international remittance activity under the Money Transfer Service Scheme (MTSS). Inward cross-border money transfer activities will be carried out by the Bank in collaboration with an Overseas Principal, the specifics of which are still being worked out.
According to a recent World Bank report released in November 2021, India is predicted to be the world's top beneficiary of remittances in 2021, with USD 87 billion in estimated receipts. As a high number of employees are projected to return to the Gulf countries, this is expected to expand by 3% to USD 89.6 billion in 2022.
Fino Bank's middle-of-the-pyramid client category caters to the families of many people who work in foreign nations. Money transferred by family members overseas may now be easily withdrawn at the nearest micro-ATM or Fino Bank's neighborhood merchant point that supports Aadhaar-Enabled Payment Services (AEPS).
"Continuous product innovation is one of the main pillars of our approach," stated Major Ashish Ahuja, Chief Operating Officer of Fino Payments Bank. Our transaction-based product offerings are further enhanced by international remittance. By the first quarter of FY23, we will be able to provide inbound remittance services to our consumers. We'll look at putting this product on our mobile app as well, as part of our digital goal to improve client experience."
Fino merchants provide a variety of services, including new account opening, cash deposits, money transfers, cash withdrawals via micro-ATMs or AEPS methods, and cash collection on behalf of a variety of institutional clients. As a new service, International Remittance will assist merchants and the bank supplement their income, enhancing Fino's already strong distribution network.
"States including Gujarat, Punjab, Kerala, Uttar Pradesh, and Bihar have a significant inbound remittance corridor. We've already increased our merchant presence in all of these areas. As a result, we are optimistic that the new service will acquire traction fast. Customers would prefer to lodge the remitted money in a Fino Bank account, thus we anticipate seeing more subscription-based savings accounts as a result of this program," Mr. Major Ashish Ahuja stated.
Fino Bank will be open to cooperating with more top money transfer operators (MTOs) in the future in order to broaden its horizons across countries. The Bank also intends to provide external remittance services in the near future. As of September 30, 2021, Fino Bank's network of over 8 lakh merchants around the country provides enormous convenience in accessing domestic and cross-border remittances.
In addition to international remittance, the bank has a number of cross-selling products in the works, including mutual funds, loans, fixed deposits, and other products, all of which are intended to contribute to the bank's bottom line as part of its strategic goal for FY23 and beyond.