OTC remittance, the smart and swift way of money transfer

OTC or Over the Counter remittance is one of the preferred ways of remittance globally. Since the market has become greatly dynamic and customer centric, agents and service providers want to offer fast and effective service to the clients. As a result, OTC becomes a well-established thought. However, OTC is a little bit different concept when we talk about MoneyTransfer to India. What do we mean by OTC remittance in the Indian context? In simple terms, when the agent performs transactions on behalf of the clients, it can be termed as OTC. Some experts call it assisted transaction because agents assist in making it successful. The person who wants to initiate remittance transaction need not have a mobile number or mobile wallet. Also, there is no need of acknowledging the mobile wallet opening by the customers. Customers do not play a role in the remittance process, but the agent does it on behalf of their clients. However, the normal KYC (Know Your Customer) that rules cash outflow from the account for other transactions are applicable for OTC remittance as well. The financial services are expected to follow regulation and compliance. Two possibilities of OTC money remittance to India In the backdrop of the information given earlier, there can be two scenarios of OTC Remittance:

• Agent doesn’t inform the customer about the remittance process. He uses the personal account or account of somebody else while transferring money to India from US. Sender tells the account number of the receiver and the entire process is done by the agent.
• Agent uses a wallet to perform the transaction. He doesn’t tell anything about the wallet details or the process to their clients. The sender knows about the progress of transaction through text messages at different levels. Many times customer doesn’t even know that a wallet has been opened in his name. He thinks that the messages are from the service provider’s automated system.

OTC process outline

• Opening of wallet on behalf of the customer is the first step.
• Receiver’s details are required to determine the destination point. Bank name, bank account number and IFSC code are other details.
• Money transfer process. NEFT or IMPS are the most commonly used methods while sending money online to India. IMPS is preferred, and NEFT is used as the backup process. Transactions done using IMPS happens almost instantly.
• Confirmation is received as soon as the transaction completes.

Remi Li is the author of this article on best way to transfer money to India from US.