India Post has partnered with MoneyGram International to offer money transfer services across 100 post offices in Delhi, Punjab and Tamil Nadu.
The service is significant since more than 50 per cent Indians do not have bank accounts.
This will enable Indian workers in foreign countries to send money to their relatives in rural areas.
This service will be extended to other post offices gradually in phases and will be available in 5,000 post offices in the country by 2014. India Post already has similar tie up with Western Union.
Mr Kapil Sibal, Minister of Human Resource Development, Communication and IT, said, “According to the World Bank, remittances to developing countries are estimated to have reached $325 billion, which provide source of livelihood for millions of poor household. India Post, with its network of over 155,000 post offices, plays a pivotal role in achieving financial inclusion and this partnership will increase transactions from key remitter countries.”
Mr Sachin Pilot, Minister of State for Communication and IT, said, “The Indian Diaspora is estimated to be over 30 million. Remittances were 3.6 per cent of GDP in 2009. Government of India recognises the importance of Indian Diaspora and this partnership is bound to fast track the process of financial inclusion for the rural areas.”
MoneyGram now has agreement with more than 20 global post offices network, including Canada, Jamaica and Kenya, among others.