Federal Bank has a web-based service for remittances from NRIs in the US. The service was inaugurated by Federal Bank Chairman M. Venugopalan. During the inauguration he said the remitter would be able to do the registration and give remittance instructions from his home, office, Internet cafe in the US or anywhere in the world.
The service, called Fed-India Remit Service (FIRSE), will allow an NRI to transfer money from his or her bank account in the US.
The customer will have to get a one-time online registration done with the bank to access the service. The bank carries out the remittance instructions through Automated Clearing House (ACH), which is a paperless clearing house in the US, handling electronic funds transfer. Bank of America is the partner bank for Federal Bank for carrying out the transfer.
The remitter can see the status of the transaction from the website while the recipient will know the payment into one’s account through mobile alert.
He said the bank will not take any service charge for the facility. The bank will convert the money into rupees at a competitive exchange rate as on the date of payment to the beneficiary. The payment takes three to seven days and the maximum amount that could be sent would be $5000 at a time. The recipient has to be a Federal Bank customer.
Federal Bank executive director K.S. Harshan said that this remittance process is much faster than methods of transfer through demand draft or cheques.
He launched the monthly e-newsletter ‘Federal Link’ on the occasion.
Explaining the characteristics of the new scheme, Abraham Tharian, General Manager (Treasury), Federal Bank, pointed out that the transaction through cheque collection takes 20-25 days. According to the bank officials the DD method of transfer involves charges including interest for a period of about 10 days required for the clearance.