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K.R. Srivats

RBI allows Indian arm to open local bank a/c

New Delhi , Oct. 6

MoneyGram International Inc, a global payment services company, on Friday said the Indian market was of "strategic importance" to the company and that it would significantly step up investments here to grow its market share in the private money transfer business.

"We are here to demonstrate our commitment to this market. We think India is going to be a very important part of our growth strategy and future," Mr Philip W. Milne, President and Chief Executive Officer (CEO) of the New York Stock Exchange-listed MoneyGram International Inc, told Business Line here.

Mr Milne, who is visiting India for the first time, said the setting up of regional office in Mumbai demonstrated the importance of the market and the company's commitment to it. Senior officials of the company accompanied the CEO for the India visit.

He said that globally money transfer business was driving the financial performance of the company. Mr Milne pointed out that there was lot of room for growth as the number 1 and number 2 players together had less than 20 per cent of global market share. "What is really driving this business is immigration," he said.

Mr Milne highlighted that India was the largest remittance market, estimated at $21 billion annually.

In India, MoneyGram International has, through its UK-based subsidiary, set up a wholly owned subsidiary here under the name MoneyGram India (P) Ltd. This subsidiary is based in Mumbai and started off as sales and support office from April 1 .

To expand distribution network, MoneyGram India is in talks with "lots of parties" who have retail distribution network and who see this as part of their portfolio.

MoneyGram India is particularly enthused over the Reserve Bank of India's move to allow it to open a local bank account (in rupees).

"We have opened the account (yesterday). This is a positive step forward in terms of supporting our distributionMoneyGram India Country Manager, Mr Harsh Lambah, said.

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