HDFC offers remittances via RTGS

HDFC Bank today launched a service that allows non-resident Indians (NRIs) to send remittances online through the Reserve Bank of India's real time gross settlement system (RTGS).

The online money transfer through RTGS will be available for remittances from the US, UK and Singapore, which will ensure the amount is credit to the recipients' accounts the same day or, latest, by the next day, HDFC Bank said. In normal online remittances, the process takes three days.

This is an attempt by HDFC Bank to get more fee income through an increase in its share in online remittances, which is currently dominated by ICICI Bank and Remit2india.com.

Of the $22 billion inward remittances in 2005-06, about $2.5 billion were sent through online services. Half of the remittances are made through cheques and wire transfers and the balance through money transfer services like Western Union Money Transfer.

Shyamal Saxena, senior vice president - retail banking, HDFC Bank said, "Through Quickremit, the bank's NRI customers will be able to credit funds directly to the beneficiary's bank account even in other banks, as desired by the remitter."