The Hindu Business Line : NRI remittances: Banks told to cut charges

To reduce costs, the working group recommends that NRIs, wherever possible, should try and route their remittances through a branch of an Indian bank or a foreign bank having a branch in India.

Remittance Charges

There is currently an RBI cap on the number of exchange house relationships an Indian bank can enter into. Since, this is a low-cost channel, the group has recommended that the limit be relaxed or even done away with. According to the group, Indian banks should be allowed to enter the Money Transfer Operators business abroad. Banks have been advised to extend the scope of existing electronic transfer facilities like the Real Time Gross Settlement and also set up Centralised Remittance Receiving Centres.

Currently, remittance charges vary. For a remittance of $1,000, from a major financial centre to a bank in India the overall cost could be in the 2 to 3 per cent range, which will drop with the size of the remittances.

More Stories on : NRIs | Forex | RBI & Other Central Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Brewing `low' in Bay bears watching

NRI remittances: Banks told to cut charges

Nasscom plans tougher laws for data protection in BPOs

TRAI proposes hybrid model for allocating 3G spectrum

Mobile players back move to revoke Press Note 5

Maharashtra to go slow on land takeover for SEZs

Orissa inks MoUs for 10 thermal power plants

Rubber prices may dip to Rs 70-75 level

LIC micro-insurance scheme for the poor

Banking, auto, software stocks fuel rally

Cement stocks: Betting on Q2 nos

PVR Cinema ends marginally weak

RBI may extend Basel II deadline: Leeladhar

UWB seeks RBI clarification

Non-AC train coaches may be phased out