In a first-of-its-kind in India, leading cross-border fintech – Winvesta – has launched a pioneering feature that enables clients based in India to remit funds via UPI and net banking to fund their global investment accounts.
One of the most tedious steps for Indians looking to invest in US stocks has been sending money to their overseas accounts. Normally, this process needs filling up A2 forms, paying high fixed fees, and even visiting a bank branch in many cases.
With this new revolutionary development, Winvesta customers can remit funds for overseas investing through UPI or net banking. One just needs a bank statement, and the whole process takes less than a minute. Apart from the ease of transaction, the process also cuts the fixed fees to ₹ 0. In many cases, Indian residents otherwise need to pay a fixed fee of as much as ₹ 2500 for transferring funds.
To send money on UPI, customers can start with as little as ₹2000 and send upto ₹1 lakh. For larger transactions, customers can use net-banking. The foreign exchange rate that investors get is also more favorable compared to the majority of banking channels.
Winvesta Founder and CEO, Swastik Nigam, said “Winvesta’s mission has been to stay at the forefront of cross-border finances for India and lead the change. After India’s first multi-currency account, we are proud to introduce the country’s first and only UPI-based foreign remittances. This is a big step forward in making global investing accessible to every resident Indian.” The easy funding feature is being rolled out to all Winvesta clients after a successful pilot run with a closed group.
“Not being able to fund their account using a local payment method such as UPI or Netbanking was the biggest pain point for a lot of our clients. Winvesta and ecosystem partners have worked very hard over the last several weeks to bring it to life. We really hope that at the end of this cohort, RBI approves UPI Payments so that the wider investor community can benefit from it and invest efficiently.” said Rahul Gupta, Head of Product at Winvesta.
This is part of a three-month cohort of the Regulatory Sandbox, launched by the Reserve Bank of India, and the feature is powered by Cashfree Payments India Pvt. Ltd. The theme of the cohort is how fintechs can solve today’s problems with cross-border payments.
Reeju Datta, Co-founder, Cashfree Payments said, “At Cashfree Payments, we are committed to bringing the cutting edge of payments to businesses. Making it easier for Indian residents to own productive assets globally is a step in the right direction, and we are glad to bring a solution to investors with innovative partners like Winvesta. We must also deeply appreciate the foresight and support of the Reserve Bank of India to allow this to operate under the ambit of their Regulatory Sandbox.”
Last December, the RBI announced the second cohort with the theme of ‘Cross Border Payments’. 8 entities were selected to be a part of this cohort, including Cashfree Payments India Pvt Ltd. Cashfree Payments’ platform will facilitate the purchase of assets listed on foreign exchanges (e.g US Stocks and ETFs on Nasdaq, NYSE) by Indian investors via local payment methods. The outward payments are automatically attributed to the LRS quota of the individual.
The objective of the Regulatory Sandbox is to foster responsible innovation in financial services, promote efficiency and bring benefit to consumers. This sandbox, in particular, is historical – it is India’s first-ever attempt at global payments through UPI.
The central bank had announced the opening of the first cohort under RS with the theme of ‘Retail Payments’. It has also decided on ‘MSME Lending’ as the theme for the third cohort, details of which it will announce in due course.
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