Singapore-based cross-border solutions provider, Instarem, has made a strategic re-entry into the Indian market, reinitiating its digital remittance services. The primary focus of this relaunch is to cater to the cross-border payment requirements of students and individuals seeking overseas education.
Instarem’s History in India Instarem has been serving customers in India since 2018. However, its operations were temporarily paused in early 2023 due to a directive from the Reserve Bank of India (RBI) to SBM Bank, affecting various remittance providers in the region. In January 2023, the RBI directed the State Bank of Mauritius (SBM) India to halt all transactions under the Liberalised Remittance Scheme (LRS), impacting several Indian startups like Niyo and Vested Finance.
The Reintroduction of Instarem The Instarem brand is making a comeback in India, powered by Nium-Forex, a regulated provider of financial products and services in the country. Nium-Forex operates as an Authorised Dealer in Foreign Exchange – Category II (AD-II licensee) and is a subsidiary of Nium Pte. Ltd., part of the Nium Group, a global payments company and the first B2B payments unicorn in South-East Asia.
Streamlining Education Remittances One significant challenge faced by individuals making remittances for education purposes is funding German blocked accounts or Canadian Guaranteed Investment Certificate (GIC) accounts, a requirement for studying in these countries. These services are typically offered by a limited number of banks. Instarem aims to simplify this process by allowing users to directly deposit funds into these accounts, eliminating unnecessary obstacles.
Moreover, many banks impose transaction limits that can hinder users from making large payments. Instarem’s solution removes these limitations, enabling users to make substantial payments of up up to INR 1.9 Crores annually without having to split the payment into multiple transactions. This not only simplifies the process but also makes it more cost-effective for customers.
RBI’s Regulatory Changes Instarem’s re-entry into India aligns with the evolving regulatory landscape. The RBI recently announced that all entities processing cross-border transactions for the import and export of goods and services in online mode will be directly regulated and categorized under ‘Payment Aggregator-Cross Border’ (PAs-CB). The move reflects the central bank’s increasing involvement in regulating cross-border payment aggregators.
The Growing Cross-Border Payment Market Global cross-border payment transaction flows have experienced a significant 13% increase from 2022, driven by global interoperability and initiatives like immediate cross-border payments (IXB) and the unified payments interface (UPI). The global cross-border payments market is projected to grow to a market size of $238.9 billion by 2027, according to a report.
