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Wednesday, Oct 11, 2006

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UAE Exchange is now authorised dealer

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Can handle remittances from India

STATUS UPGRADED: Mr B. R. Shetty (left), CMD, UAE Exchange & Financial Services Ltd, and Mr Y. Sudmeer Kumar Shetty, COO & GM - Global Operations, at a press conference in Mumbai on Tuesday. - Paul Noronha

Mumbai , Oct. 10

UAE Exchange and Financial Services Ltd can now remit money from India to the UAE. It has been granted the status of authorised dealer category-2 licence by the Reserve Bank of India. Earlier, the company only remitted money from the UAE to India.

The company has been upgraded from a full-fledged moneychanger to an authorised dealer. UAE Exchange offers remittance services and has a retail presence in India.

With 209 branches located across India, the company plans to add 100 branches next year. It plans to release foreign exchange for non-trade related current account transactions such as remittances on behalf of tour operators, film shooting, overseas education, medical treatment, employment, and visa fees, among others. "The upper limit for a private transaction or individual visit is about $10,000 per annum and for medical expenses or education it is about $100,000 per annum," said a senior official. The cost for every transaction is around Rs 200 per draft, irrespective of the amount transferred.

IPO next year

UAE Exchange is also expecting to hit the Indian capital market by April-September 2007 with an initial public offering of about Rs 100 crore. "The funds raised will be used to meet the capital requirements," said Mr B.R. Shetty, Managing Director and CEO, UAE Exchange.

The company has also applied to the RBI for functioning as a deposit-accepting non-banking finance company. "Our application is also with the RBI for a bank licence," said Mr V. George Antony, Country Head, UAE Exchange.

The company expects the remittances from the UAE to India to be around Rs 11,000 crore this year. About 70 per cent of the remittances from the UAE come to India, with 60 per cent going to Kerala.

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