Soon, your postman will deliver money remitted to you from abroad. India Post has tied up with Emirates Post to bring money order services from the Gulf states to the four metros in India, as well as all of Kerala, covering 2,500 post offices.
Through this pilot project, India Post hopes to bring these services to the 4 million Indian workers in the Gulf who send money home every month. They remit the money through wire transfer companies like Western Union and UAE Exchange, which charge as commission a percentage of the amount remitted.
India Post hopes to get a piece of this market.
“We will offer money transfers at rates much cheaper than other money transfer companies,” said IMG Khan, secretary (Department of Post).
Western Union charges 17 dirhams (Rs 187) per transaction, while India Post will charge 11 (Rs 121) to 13 dirhams (Rs 143).
“Even if we manage to get on board 25 per cent of the 4 million people who remit money to India, it will be huge,” said Khan, who spearheaded the alliance with Emirates Post.
Future plans include extending these services to 1.55 lakh post offices across India and extending the service to other countries. “We are in talks with the US postal service too,” Khan said.