Fino Payments Bank has received clearance from the Reserve Bank of India (RBI) to start an international remittance business.
The financial institution secured the central bank nod under the money transfer service scheme (MTSS).
The lender is working out details with an overseas principal to enable inward cross-border money transfers.
Once launched, the service will enable the recipient to withdraw the remitted money at the micro-ATM or Aadhaar-enabled payment services (AEPS)-enabled Fino Bank’s neighbourhood merchant point.
Fino Payments Bank chief operating officer Major Ashish Ahuja said: “Continuous product innovation is one of the core pillars of our model. International remittance further enhances our transaction-based product offerings.
“We will be ready to offer the inward remittance services to our customers by Q1 FY23. In sync with our digital strategy to enhance customer experience, we will also look at having this product on our mobile application as well.”
Other services offered by Fino merchants include account opening, cash deposit, money transfer, cash withdrawal via micro-ATMs or AEPS and cash collections on behalf of institutional clients.
The new offering is expected to enhance merchant’s income and bank lending thereby augmenting Fino’s distribution network.
“We also expect to shore up more subscription-based saving accounts due to this initiative as customers would prefer to park the remitted money in a Fino Bank account itself,” Ahuja added.
Fino Bank said it is willing to partner with more leading money transfer operators (MTOs) to expand its footprint in different countries.
It also plans to launch outward remittance services soon.