Express Money Order launched in UAE
Dubai, May 5, 2008
Express Money Order (EMO), a new remittance service to India, was officially launched with simultaneous functions held in UAE and India.
This heralds a low-cost instant money transfer service for just Dh11 ($3) per transaction, following a new partnership between Emirates Post and India Post.
At Emirates Post's Deira Main Post Office, CEO of Emirates Post Ibrahim Bin Karam and senior officials joined the first UAE customer Lakshmi Narasimhan as he transferred money to Chennai Post Office. Narasimhan was given a secret code which he SMS-ed to his wife.
Narasimhan wife then collected the amount instantly, after quoting the code, in the presence of top Indian officials led by Minister of Communications and Information Technology A Raja and director general of India Post I M G Khan.
"Our Express Money Order provides a safe low-cost option for people sending regular remittances to India through the postal network," said Bin Karam.
"We have tied up with India Post because it has the world's largest network of post offices, penetrating every corner of the country. More importantly, the system is powered by UPU's secure International Financial System (IFS), ensuring global standards. Our customers can expect real value for money."
Customers can do instant transfer from any Emirates Post post-office and the money will be delivered to any of the 97 head post-offices and 2,400 sub-post offices currently linked to the EMO service. This network will be increased gradually to cover most areas of India.
Customers sending money to India through Emirates Post offices will have two options. They can either ask the addressee to collect the money from the selected post office in India or have the money delivered to the addressee's residence (for an extra fee of Dh4). On the other hand, Money Orders sent from India through India Post will be payable at post offices in the UAE.
Under the system, a single Money Order issued by Emirates Post for payment in India shall not exceed $ 2,500 (Dh9,100) or its equivalent. A maximum of 12 Money Orders addressed to one beneficiary will be allowed in a calendar year. Amounts of less than 50,000 Indian rupees will be paid in cash, and those exceeding 50,000 Indian rupees will be payable by cheque.
The International Express Money Orders will be transmitted between the two parties using the IFS/STEFI secure network of the Universal Postal Union (UPU), through a server in Berne, Switzerland.
In India, the electronic Money Orders payable at post office counters will be delivered instantly at post offices. In the case of Money Orders payable at addressee's destination, the delivery will be within two days through the IFS network.
Outside the IFS network, the delivery will take place within five days. If the money is sent from India to the UAE, the amount can be payable instantly at Emirates Post offices.
The IFS-based International Express Money Order is a reliable, adaptable and easy-to-use tool and can be installed in the remotest areas of the world. The UPU anticipates that financial services could generate up to 50 per cent of a country's postal revenue, and by promoting IFS, the dominance of big players could be reduced, thus offering customers, especially migrant workers, a cost-effective system of electronic money transfer.
India has a network of 155,333 post offices, the largest in the world, covering the remotest corners of the country. - TradeArabia News Service