Fed India Remit Service is an Internet based remittance service using ACH clearing arrangement in US. Bank has associates with Bank of America to bring this service to its US based customers. Using this service, NRIs can transfer US Dollar funds, from their account with any ACH-affiliated bank in the USA, to the account of the beneficiary with any branch of Federal Bank. The attraction of the scheme is its cost affordability. By paying just Rs 10 one can transfer $ 15,000 per day subject to a maximum of $ 45,000 per month. For details about registering for the service see the Fed India Remit Service page.
The salient features about the scheme is given below:
Fed-India Remit Service
It enables customers having accounts with US banks to transfer money online to any account in Federal Bank (India).
Secured environment for the web-based service
The money transfer happens through the Automated Clearing House (ACH) of US. ACH uses state-of-the-art security systems to ensure the privacy of the bank account details and other information provided by the remitter. Federal Bank uses 128-bit SSL technology to transmit the remitter’s information in an encrypted form.
Registration, Pre- testing and Remittance (ACH) instruction
E-transfer (ACH) Registration by the remitter
A new user (remitter) will have to register for the ACH service at Federal Bank’s corporate website - www.federalbank.co.in. This is a one-time process.
At the time of registration, the remitter will have to provide (a) his personal details and (b) the details about his bank as detailed below:
a) Personal details
- Remitter’s Name
- Remitter’s Local Address
- Remitter’s Social Security Number
- Remitter’s Email Address
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b) Remitter Bank Details
- Bank Name
- Account Number
- Branch and ABA routing number
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Pre- testing for the completion of registration process
Once the registration is done, Federal Bank will verify the remitter’s bank account details (provided by the remitter at the time of the registration process), as a security check. This is a one-time process.
The verification process will be as follows:
Federal Bank will arrange to debit remitter’s bank account for an undisclosed sub dollar amount (less than USD 1) and credit back the same amount. Thus, the net effect of the test debit and test credit on the account is zero. This is to enable Federal Bank to do a pre-testing on the remitter’s bank account.
The remitter will check his bank account within a specified period (2 working days) for the test debit and credit amount.
Federal Bank will send an e-mail to the remitter on the 3rd working day. This e-mail will give the details about account verification process. The remitter has to confirm the exact sub dollar amount (as found in his bank account) at Federal Bank’s website.
If he enters the correct sub-dollar amount, the registration process will be completed and the remitter would be accepted by Federal Bank’s system for further ACH payments from his account. At this stage, the remitter will be given a User Id and password.
On the other hand, if he enters the details incorrectly during 3 attempts, system will reject the registration and the remitter will be required to re-register.
Remittance (ACH) instruction by the Remitter:
After completion of the registration process, the remitter can login using his User Id / password and give a remittance instruction.
While giving ACH instruction, the remitter will have to give the following details:
- Beneficiary’s Name
- Beneficiary’s Address
- Beneficiary’s Local telephone number
- Beneficiary’s Bank’s Name
- Beneficiary’s Bank’s Branch Location
- Beneficiary’s Account Number
- Purpose of Remittance
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The remitter can also give one-time instruction for regular remittances to the same Beneficiary. He can modify later, if required. He will have to notify Federal Bank, if he happens to close his bank account.
The remitter can send up to USD 15,000 per remittance and a maximum of USD 45,000 per Month.
Payment processing through ACH
Based on authorisation given by Federal Bank, Bank of America will electronically collect the amount through ACH from the Remitter’s Bank and credit the funds to the account of Federal Bank with Bank of America.
The remitter’s bank account gets debited on the second or third working day from the remittance instruction date. If the remitter’s bank could not pay the amount, the returns will be known only on the third or fourth working day. Thus, Federal Bank will come to know about the status of the payment only in four to five working days.
Payment to Beneficiary
After ascertaining to its satisfaction, the status and purpose of the remittance, Federal Bank will make payment to the beneficiary.
Status update
The remitter will be updated on the status of the transaction through updates at Federal Bank’s website.
Time Frame (Illustration):
(A) Time frame for Registration (new remitter)
- Day 1: Remitter applies for registration.
- Day 2: Federal Bank processes the Registration.
- Day 3: Sub-dollar transactions are carried out in the Remitter’s bank account.
- Day 6: Federal Bank sends e-mail to the Remitter seeking confirmation of sub-dollar amount. The remitter confirms the sub-dollar amount on Day 6 itself. The registration process is complete on Day 6 itself and the remitter can create his own id and password, once the sub dollar transaction is confirmed.
(B) Time frame for Payment to the Beneficiary (registered remitter)
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Remarks: Saturday, Sunday and public holidays in USA or India can affect the above-mentioned time frame.
Exchange Rate
Wherever remittances in USD are to be converted in to Indian Rupees, Federal Bank will apply its finest exchange rate ruling at the time of payment to the beneficiary.
Service charges/ Commission
Federal Bank will recover just Rs 10 per remittance irrespective of the amount transferred on account of Government service charges.
Contact details
NRI Division
International Banking Department, Kochi, India.
Mr. Unnikrishna Varma N, Tel No : +91 484 2385601
Fax No : +91 484 2385509
E-mail address: nridiv@federalbank.co.in