During the G20 summit, Prime Minister Narendra Modi had stressed on a definite timeline before year 2030 for reduction in cost of transferring money, a move that will help India save nearly $4 billion a year in cost of remittances.
Every year $70 billion is received by India from Indians working abroad. In turn, it pays around $5 billion and around 7.5% in fees as a cost of receiving remittances. Monetago is set to change the dynamics of this space. It is a blockchain technology enabled transaction company which uses proprietary architecture that can bring down the cost of money transfer to nearly 2%.
The reason for high cost of remittances is because of the traditional correspondent banking system in which the funds have to be moved through a series of banks before reaching the beneficiary. Every bank has its charges and the communication happens via SWIFT messages.
Monetago Inc. is a New York headquartered company with its wholly owned corporate presence in India. Monetago has successfully completed several pilot remittance projects. Monetago is also one of the first companies to apply for Bitlicense with New York Department of Financial Services.
Atul Khekade, regional director – India, Monetago Inc said, “We at Monetago have presence in over 40 countries and 28 currencies. Our proprietary money transfer infrastructure uses blockchain technology enabled digital currency that reduces the time, cost and pipeline of entities involved in the remittances. We have done our pilot tests successfully and will soon make an application to regulatory authorities for commencement of services. Our target is to bring down cost of remittances to nearly 2%."
Monetago will be working with leading banks, financial institutions and regulatory authorities in India to enable the services. Blockchain enabled digital currency architecture of Monetago claims to keep cross border payments and remittances relatively unaffected by volatility of currency valuation.