Dubai: Residents of the UAE and India will be able to send International Express Money Orders through the postal network, powered by Universal Postal Union's (UPU) secure International Financial System (IFS) from next month, following an agreement between Emirates Post and India Post.

I.M.G. Khan, director-general of India Post and Ebrahim Karam Ali Bin Karam, CEO of Emirates Post, recently signed an agreement in Dubai putting in place a system that will allow UAE residents to transfer money speedily to any part of India through India's postal network, the largest in the world.

Customers sending money to India via Emirates Post will have two options. They can either have the money delivered to the addressee's residence, or ask the addressee to collect the money from any authorised post office in India.

On the other hand, money orders sent from India via India Post will be payable at Emirates Post offices in the UAE.

Regulations

The agreement stipulates that a single money order issued by Emirates Post for payment in India must not exceed $2,500 or equivalent.

Moreover, only 12 money orders addressed to one beneficiary will be allowed in a calendar year. Amounts of less than Rs50,000 will be paid in cash, and those exceeding Rs50,000 will be payed by cheque.

"The new facility represents a boon to Indians in the UAE, as India Post will guarantee quick delivery of the money to every remote corner of India," said Karam.

"We have fixed affordable charges to enable thousands of UAE residents to use the secure International Express Money Order endorsed by the UPU. We are positive our customers will find this service highly beneficial and convenient."

The International Express Money Orders will be transmitted between the two parties using the IFS/STEFI secure network, through a server in Berne, Switzerland.

Wide network

"The new agreement reflects the strong social and commercial bonds between the UAE and India," said I.M.G. Khan. "Through this system, the long-felt need of UAE Indians for a cost-effective electronic money order facility will be fulfilled.

"As our network encompasses the length and breadth of the country, we are in a position to provide a service that is unmatched by private operators."

India has a network of 155,333 post offices, the largest in the world, covering the remotest corners of the country.