Want to remit money for shares or property purchased overseas? Need to urgently open a letter of credit for imports while still abroad?
Well, doing all this instantly from home, office or even a hotel room will soon be possible, following the Reserve Bank of India's decision to allow internet-based foreign exchange services for permitted transactions.
The RBI last week issued a circular to all banks saying they would be allowed to extend internet-based platforms for foreign exchange services, in addition to local currency products. The decision follows representations from a number of banks for such permission.
Samir Subberwal, head of shared distribution at Standard Chartered Bank, said, "We plan to start off by providing our customers with limited online transactional access like accepting requests for opening residential foreign currency and exchange earners' foreign currency accounts, viewing details of such accounts, and even transferring funds between these accounts."
Online foreign exchange facilities will help customers manage their cash better, and banks will be able to grab business from money-changers over a period of time.
In terms of product offerings, the online foreign exchange facility will be more comprehensive than what is available to, say, a credit card holder.
A customer can use his credit card for paying in foreign currency only to purchase goods and services.
With Net banking-based foreign exchange solutions, a customer will be able to carry out online any banking transaction in foreign currency. "The possibilities are unlimited," bankers said.
Anup Bagchi, general manager at ICICI Bank, said, "Unlike a traveller's cheque, a customer, when on a holiday or business trip, will have the flexibility to upload the (travel) card by transferring the required amount as and when necessary from his account with the bank."
Standard Chartered also plans to offer value-added services like buying-selling of foreign exchange (traveller's cheques, currencies, etc), requesting telegraphic transfers and other remittance solutions, though documentation will still need to be verified offline.
P Mukherjee, head of treasury at UTI Bank, said: "We will be able to provide online facilities for remittance, draft, trade finance, and LC opening. The new channel for foreign exchange services will also reduce the operational costs of banks."
