In a first of its kind in India, investment fintech Winvesta has launched a feature that helps clients based in the country to remit funds via UPI and net banking to fund their global investment accounts.
Normally, this process needs filling up A2 forms, paying high fixed fees, and even visiting a bank branch in many cases.
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 ₹2,500 for transferring funds. By pulling in details such as PAN number at the time of registration, the app dispenses with the need for the customer to separately fill a remittance form. To be sure, the forex spread remains in place. Generally, such spreads tend to be 1-2% of the amount remitted. However, for very small amounts, the fixed fee takes a bigger cut than the spread, explained Winvesta founder and CEO, Swastik Nigam.
To send money on UPI, customers can start with as little as ₹2000 and send up to ₹1 lakh. For larger transactions, customers can use net banking. The foreign exchange rate that investors get is also more favourable compared to the majority of banking channels, according to Nigam.
The Winvesta feature is part of a three-month cohort of the regulatory sandbox, and the feature is powered by Cashfree Payments India Pvt. Ltd., launched by the Reserve Bank of India. The theme of the cohort is how fintechs can solve today’s problems with cross-border payments. The feature also involves a banking partner. However, Winvesta declined to disclose the name of the bank.
“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.
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’. Eight 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.
Founded by former Deutsche Bank veterans Swastik Nigam and Prateek Jain, Winvesta Ltd. is an appointed representative of RiskSave Technologies Ltd., which is authorised and regulated by the Financial Conduct Authority (FCA), UK. Winvesta offers a global investment platform for those in India. Winvesta’s product suite includes U.S. stock trading and international banking facilities. The international multi-currency account enables clients to have accounts in 30+ currencies including GBP, EUR and USD, which will facilitate alternate investments like international real estate.
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