Fintech company Winvesta has launched a feature that allows its India-based clients to remit funds through UPI and net banking to fund their global investment accounts. One of the most time-consuming steps for Indians looking to invest in US stocks was to send money to their overseas accounts. Normally, this process requires filling out A2 forms, paying high fixed fees, and even going to a bank branch in many cases. The new functionality of Winvesta will make investing in US equities easier for its users.
In a statement released today (November 23, 2021), Winvesta said that clients can send funds to invest abroad through UPI or net banking. All it takes is a bank statement and the whole process takes less than a minute.
Winvesta added that besides the ease of transaction, the process also reduces the fixed fee to Rs 0. In many cases Indian residents otherwise have to pay a fixed fee of up to Rs 2500 for the transfer of funds.
To send money to UPI, customers can start with as little as Rs 2000 and send up to Rs 1 lakh. For larger transactions, customers can use net banking. The exchange rate investors get is also more favorable compared to the majority of banking channels, the statement said.
Commenting on the new feature, Winvesta Founder and CEO Swastik Nigam said, âWinvesta’s mission has been to stay at the forefront of cross-border finance for India and lead the change. Following India’s first multi-currency account, we are proud to present the country’s first and only UPI-based foreign remittances. This is a big step forward in making global investing accessible to every Indian resident.
The easy finance feature is being rolled out for all Winvesta customers after a successful pilot test with a closed group, he added.
âNot being able to fund their account using a local payment method such as UPI or Netbanking has been the biggest problem for many of our customers. Winvesta and the ecosystem partners have worked very hard over the past few weeks to bring it to life. We really hope that at the end of this cohort, RBI approves UPI payments so that the wider investor community can benefit and invest effectively. said Rahul Gupta, Product Manager at Winvesta.
The release further states that the new feature is part of a three-month regulatory sandbox cohort and that the feature is powered by Cashfree Payments India Pvt. Ltd., launched by the Reserve Bank of India. The theme of the cohort is how fintechs can solve the current problems of cross-border payments.
Last December, the Reserve Bank of India announced the second cohort with the theme of âcross-border paymentsâ. Eight entities were selected to be part of this cohort, including Cashfree Payments India Pvt Ltd. The Cashfree Payments platform will facilitate the purchase of publicly traded assets (e.g. US stocks and ETFs on the Nasdaq, NYSE) by Indian investors via local payment. methods. Disbursements are automatically charged to the individual’s LRS quota.
The central bank had announced the opening of the first cohort under RS ââwith the theme “Retail payments”. He has also chosen âMSME loanâ as the theme for the third cohort, details of which he will announce in due course.