InstaReM to offer overseas money transfers at mid-market FX rates with absolutely no margins added to forex conversion rates
Mumbai, India, 3 April, 2018: InstaReM, Southeast Asia’s leading digital cross-border money transfer company, has launched outbound money transfer operations from India. This means that individuals and businesses in India will be able to make fast, convenient and cost-effective overseas money transfers from India for transactions pertaining to business or private visits, overseas education, medical treatment etc. and more.
InstaReM’s outbound money transfer services from India are being offered in partnership with DCB Bank Limited, an Authorised Dealer Category-I Bank, as per the Reserve Bank of India’s governing conditions.
Singapore-headquartered InstaReM, co-promoted by Prajit Nanu, is the first non-bank entity to offer outward remittance service from India. The company received its regulatory approvals from the RBI in September 2017. Over the past six months, InstaReM has built a robust technology platform to facilitate smoother payments and service the increased volumes it is expecting as a result of this expansion.
Announcing the launch of InstaReM’s India operations, Prajit Nanu, who is also the CEO of the company, said: “People in India are increasingly engaging with their overseas counterparts for business, leisure, medical, education, entertainment-related activities, which involve transfer of money overseas. Traditional ways of transferring money via banks and money transfer operators from India have been expensive due to high transfer charges along with hidden fees that are not known to customers. They are also time-consuming and not transparent. InstaReM is addressing this challenge globally with an innovative approach. With our automated platform and deep relationships with banks worldwide, we are able to offer transparent international money transfers at a fraction of costs compared to the traditional players.”
Speaking on the launch, Mr Praveen Kutty, Head Retail & SME Banking, DCB Bank, and InstaReM’s associate for India-outbound remittance, said: “We are pleased to launch remittance services with InstaReM. InstaReM is disrupting international money transfer business with its innovative digital platform and Zero-Margin FX Rate model. We are sure that the combination of DCB Bank’s expertise in forex market and InstaReM’s feature-rich digital platform will give customers across India great value and a superlative experience in money transfers from India.”
Outbound remittances by Indians touched US$1.2 billion in January, according to Reserve Bank of India. Traditional international money transfers from India are expensive and opaque. The World Bank estimates the average cost of cross-border remittances at 7.09% of the amount sent globally. In contrast, InstaReM effects overseas money transfers at mid-market FX rate—a midpoint between the “buy” and “sell” rates of currencies in the forex markets—which is sourced directly from Reuters, and adds absolutely no margins to forex conversion rates. It transparently charges a nominal fee to cover the overheads of processing transactions. Notably, the World Bank lists InstaReM as one of the most cost-efficient money transfer platforms across many corridors from Australia and Singapore.
“With InstaReM’s unique Zero-Margin FX positioning, superior platform and exceptional customer service, we are confident of capturing a substantial market share of outbound money transfers from India,” added Prajit.
InstaReM launched its European operations from Vilnius, Lithuania, last month and is on its way to expand into the USA soon.
InstaReM is a Singapore-headquartered cross-border payments company. Founded in 2014, InstaReM is licensed as a Money Services Business (MSB) in Singapore, Hong Kong, Australia, Malaysia, India, Canada and the USA. It powers local payments to more than 55+ countries across the globe. InstaReM has created a unique payment mesh in Asia, which is being leveraged by financial institutions, SMEs and individuals to make fast low-cost cross-border payments. Since starting operations in August 2015, InstaReM has raised US$ 18 million in two rounds of funding. Its investors include Global Founders Capital, Vertex Ventures (VC arm of Temasek Holdings), Fullerton Financial Holdings, GSR Ventures and SBI-FMO Emerging Asia Financial Sector Fund.