Mobile payments switch TerraPay has partnered with YES Bank to enable real-time international money transfers to bank accounts in India. YES Bank is targeting the Indian migrant community in different parts of the world. Through the partnership, TerraPay has entered into a Rupee Drawing Arrangement where Indian migrants worldwide can walk into TerraPay’s partner outlet anytime and send money to bank accounts.
For bank accounts other than YES Bank accounts, YES Bank will disburse funds using the IMPS. The service is available 24X7.
Rupee Drawing Arrangement (RDA) is a channel to receive cross-border remittances from overseas jurisdictions. Under this arrangement, the banks can enter into tie-ups with the non-resident exchange houses. This scheme is not used for cross-border outward remittances from India. Under the RDA, no cash disbursement of remittances is allowed. The remittances have to be credited to the bank account of the beneficiary. Note that under the Money Transfer Service Scheme (MTSS), where companies like Western Union and MoneyGram operate under, cash disbursement is allowed.
TerraPay is a B2B payments company incubated by Mahindra Comviva. It is registered and regulated in several jurisdictions. In the UK, it is regulated by the Financial Conduct Authority (FCA).
Recently, it obtained regulatory approval from the Bank of Tanzania to launch International Money transfer services to mobile wallets in Tanzania. Users from across the world can send money to mobile wallets in the country including Vodacom M-Pesa, Tigo Pesa, Airtel Money.
Wallets to accept cross-border remittance in India
Note that the partnership is coming in at a time when the Reserve Bank of India is considering allowing wallets to undertake cross-border inward remittances. However, the wallets need to be fully KYC compliant and issuers can enable this facility only on explicit request of the customers. To begin with, a per transaction limit of not exceeding Rs 5000 for such cross-border transactions shall apply, the RBI said. However, the maximum value in these wallets at any point of time shall not exceed Rs 50,000.