India Post inks deal with UAE firm for instant money transfer

India's Department of Posts Friday said it has signed an agreement with Wall Street Exchange, a unit of UAE based Emirates Post Group, to facilitate instant transfer of money, especially by the Indian diaspora in the Gulf.

The first transfer of money under the "instant cash" facility was done from the United Arab Emirates (UAE) to India Post or department of posts, here this week.

"The service will be rolled out nationally in a phased manner and will be made available at approximately 17,500 post offices across India by next month," the communications ministry said in a statement here.

The service will be provided through the International Financial System (IFS) of Universal Postal Union.

"This tie-up offers the Indian diaspora worldwide - especially in the Gulf region - a safe, secure and reliable money transfer service for their families back home," it said.

India is the world's largest recipient of remittances with over $70 billion annually, half of which come from the Gulf countries.

Under the new facility money will be made available to the customers within minutes of completing the transaction.

"Recipients will be able to receive their payment at any of the identified 17,500 post offices by producing the unique transaction number along with their identity and know your customer (KYC) documents," the statement said.

India Post is the largest postal network in the world with 1.55 lakh Post Offices in the country, of which more than 1.39 lakh are in the rural area.

Besides mail, India Post also provides various financial services like small savings instruments under Post Office Savings Bank and money remittance, both domestic and international.