Fed India Remit Service is an Internet based remittance service using ACH clearing arrangement in US. Federal Bank has associated 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 their own non-resident account with any branch of Federal Bank.
Fed India Remit Service is an Internet based remittance service using ACH clearing arrangement in US. The attraction of the scheme is its cost affordability. By paying just Rs 10 one can transfer $ 1,000 per day subject to a maximum of $ 2,000 per month.
Key features are:
- Safe and secure method of US dollar funds transfer from the US to India.
- Customers having accounts with US banks can transfer money online to their own non-resident account with any branch of Federal Bank in India
- The remitter can send up to USD 1,000 per day and a maximum of USD 2,000 per Month.
- Open FCNR deposit upto $ 50000 without any charge
Secure Environment for Transfer
- 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
- A new user (remitter) will have to register for the ACH service at Federal Bank's corporate website. 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:
- Personal details
- Remitter's Name
- Remitter's Local Address
- Remitter's Social Security Number
- Remitter's Email Address
- Remitter Bank Details
- Bank Name
- Account Number
- Branch and ABA routing number
- Personal details
- 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.
- 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.
- 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
- 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.
- 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.
- After ascertaining to its satisfaction, the status and purpose of the remittance, Federal Bank will make payment to the beneficiary.
- The remitter will be updated on the status of the transaction through updates at Federal Bank's website.
- 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.
- Time frame for Payment to the Beneficiary (registered remitter)
- Day 1: The remitter gives Remittance instruction.
- Day 2: Federal Bank processes the Remittance instruction.
- Day 3: The remitter's bank account debited through ACH.
- Payment to the beneficiary will be made on the 4th working day from the date of debit to the remitter's account.
Fed India Remit
Transfer up to $ 1,000 per day using Fed India Remit.
Nominal charge of just Rs 10 per remittance irrespective of the amount transferred.
Maximum monthly transfer up to $ 2,000.
Rates and Charges
- 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.