UAE Exchange applies for banking licence in India
The move comes as the country opens up key economic sectors for foreign investors, as well as non-resident Indians
Dubai: Dr. B.R. Shetty, one of the top Indian businessmen in the Gulf, yesterday applied for a banking licence in India, with a paid-up capital of Rs5 billion.
The move comes as the country opens up key economic sectors for foreign investors, as well as non-resident Indian (NRI) community spread across the world.
UAE Exchange India is a Non-Banking Financial Company approved by the Reserve Bank of India (RBI) and the third largest Authorised Dealer Category II in terms of branch network, in India, where it operates through 330 direct branches and 44,000 agent locations present in 20 states in India.
The move by the region’s biggest money exchange house, is seen as a natural progression of its business in India where it remits more than $7 billion (Dh25 billion), out of the total $22 billion (Dh80 billion) remittance processed by his company, UAE Exchange Centre LLC.
The licensing process might take a year. “Since we have already an established network in India and the GCC, served by 8,000 people, it will be easier to set up the retail banking operations for us,” Dr Shetty, Managing Director and Chief Executive Officer of UAE Exchange, told Gulf News on phone from India right after submitting the formal application.
“Once granted, we hope to start operations within six months.”
During the financial year 2012-13, UAE Exchange handled a total business volume of Rs.120 billion in India. The company serves a customer base of over 2.1 million, employs 3,400 professionals and is the third largest Authorised Dealer Category II, in terms of branch network in India.
“We have been present in India since 1999 and we also have strong presence in all other countries, from where Indian expatriates send money to their families in India. We think it is a great opportunity to now service the Indian clients besides the Indian expatriate community. Our rich infrastructure, technological prowess and wide reach across India, are our strengths.”
The India operations of UAE Exchange is a part of the global network of the leading global remittance and foreign exchange brand, which has operations spread across 31 countries with more than 700 branches. The global money exchange house manages 6 per cent of the total global remittance volume and 10 per cent of the total remittance inflow to India.
The move comes at a time when the Indian economy witnesses slowest growth while its currency loses value against international currencies.
Standard & Poor’s (S&P) in February said the Indian banking sector would continue to face hurdles, in terms of asset quality and earnings, next financial year. It added a revival in the sector would take place only in 2014-15.
“Increased government welfare spending in the election year, improvement in private consumption, lower interest rates and a better agricultural output would help the country achieve 6.4 per cent growth next year,” she said in a statement earlier.
“We expect the corporate sector to start reviving in the latter half of financial year 2014,” Chugh added.
Once started, this will be India’s first lender launched by a non-resident Indian from the Gulf.
