Federal Bank holds 21% of inward remittance market: Report

Federal Bank now holds 21 percent of the inward remittance market, according to a Times of India report. The bank is looking at the market as one of its core strengths and will take steps to ensure that this is maintained. The Federal Bank is also working with technology partners to ensure that it can increase its deposits. Federal Bank MD & CEO Shyam Srinivasan told The Times of India that the bank had managed to more than triple its share from 6 percent in 2013. He also talked about how his company had adopted a two-pronged strategy to ensure it could retain its share. Firstly, the Federal Bank adopted technologies like blockchain to facilitate remittances from the Middle East. It also partnered up with aggregators. Srinivasan added that while the ”natural corridor for money movement in India is Middle East -Kerala, and we are a dominant player in this part of the country,” the organisation has also tried to move beyond it. Over the years, it has worked to manage the “non-Middle East and non-Kerala flows” as well. “The remittance money that comes into India is non-arbitrage seeking and non-investment related. These are from people who must send money home to support their families and therefore are steady,” Srinivasan stated. The Federal Bank CEO explained that this made them different from arbitrage opportunities, which can be inconsistent and choppy. “Our dominance is where people are not going to live there permanently”, Srinivasan stated, adding that the remittance flows are dependent on whether the workers are in a country that offers them the option of citizenship or not. According to data by the Reserve Bank of India, private banks account for over half the flow of remittances, at 52.8 percent. This is followed by public sector banks (39.4 percent) and foreign banks (7.8 percent). The inward remittance market has been valued over $80 billion over the past few years. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.