Cox & Kings to begin Nostro operations by May-end

Travel service provider Cox & Kings, which has got licence from the RBI for using foreign currency account, is planning to begin transactions by May- end, a top executive has said.

“We got AD II licence from Reserve Bank of India about a week-and-half ago for operating Nostro account. The implication of it is pretty tremendous. We are in the process of creating different currency accounts and as soon as they are set up, we will begin transactions, which will be around end of May,” Cox & Kings Director Mr Peter Kerkar told PTI.

Till now Thomas Cook was the only Indian travel firm to have an authorised dealer licence or Nostro licence.

A Nostro account will help Cox & Kings to get better currency rates, manage exchange rate fluctuations more efficiently, use credits available in the account to make remittances and issue foreign currency demand drafts or telegraphic transfers on its own.

“Earlier, we had to remit currency through banks. With a Nostro account, we can directly buy and sell from the banks, which will help us in getting better rates,” he said.

Initially, Cox & Kings will create accounts for US dollar, euro, pound and yen. “As these four currencies are the most traded, we are initially creating accounts for them.”

The company, Mr Kerkar said, is expecting about Rs 6-7 crore net profit from this new licence by FY13-end. “We are expecting about Rs 2-3 crore profitability every quarter. This would make it about Rs 6-7 crore by end of this fiscal.”

To start with, Cox & Kings will have the Nostro account on its existing foreign currency division in 100 locations.

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