core sector communique

India Post Ties-up with MoneyGram International for Money Transfer Solutions
Shri Kapil Sibal Launchs the Scheme by Paying Out First Transaction 

India Post, the largest distribution postal network in the world, and the MoneyGram International, the fastest growing global money transfer company joined hands today to offer convenient money transfer solutions to Indians. Shri Kapil Sibal, the Union Minister of Communications and Information Technology commenced the scheme by conducting a remittance transaction through the MoneyGram service and displayed the ease in the transaction through the new system. The transaction was made from UAE to Delhi.

Speaking on the occasion, Shri Sibal said that more than fifty percent Indians do not have bank accounts and international inward remittances to rural areas to support financial inclusion initiatives of the Government of India. Transacting money without a bank account will make a difference in the lives of the citizens.

Starting today, 100 important Post Offices in Delhi, Punjab and Tamil Nadu Circles will begin offering MoneyGram instant inward money transfer services. MoneyGram’s services will be extended to other Post Offices and Circles in the country in a phased manner. The service is expected to be available in 5,000 Post Offices in the country by 2014. India Post and MoneyGram have planned a joint marketing endeavor in a number of states.

Earlier Shri Sachin Pilot, Ministers of State for Communications and IT said that 30 million Indians are living abroad and this number is growing. Money remittance services have huge market potential as banks have only five percent rural presence in the country. This partnership with MoneyGram will provide valuable service to those customers, particularly in rural areas, who are not fully served by banks and other financial institutions, he added.

Ms. Radhika Doraiswamy, Secretary, Department of Posts said, “India Post has long been in international money transfer service through its traditional paper-based Money Order service to many countries The social relevance of India Post has gained momentum in the recent past through active participation of Post Offices in disbursement of wages to the rural poor under the Mahatma Gandhi National Employment Guarantee (MNEGR) Scheme throughout the country. We work tirelessly to extend access not only to mail services, but to financial services for all, and it is in this context that our association with MoneyGram, a leading global money transfer company, is significant. This tie-up will help India Post to provide valuable service to our customers in a fast, convenient and cost-effective manner.”

Smt. Manjula Prasher, Member (Operations & Technology) Postal Services Board said “all departmental post offices numbering around 25,000, which are already computerized, are expected to be covered under Core Banking Solution (CBS) by 2012-13. Plans are afoot to provide Rural ICT to all 1.3 lakh branch post offices in the country. India Post is undertaking diversified activities by leveraging its network to augment revenues. Our Post Offices have more than 10 years of experience in providing instant international money transfer service. This valuable experience will be of great help to make the association with MoneyGram a successful and long-lasting one.

Harsh Lambah, MoneyGram’ Senior Regional Director for South Asia said, “MoneyGram’s teaming with India Post reaffirms the company’s commitment to serving its hundreds of thousands of customers in the world’s largest remittance receive market and the value MoneyGram brings India Post’s business and customers. Bringing India Post, one of the world’s largest postal services to our network is very exciting.

MoneyGram International is a leading global money transfer company offering money transfer services worldwide through a global network of more than 244,000 agent locations—including retailers, international post offices and financial institutions—in 192 countries and territories around the world.