Wednesday, 2 September 2015

When banks deal with other banks

Remittances to other countries from the UAE is now easier with premium banks offering customers easy payment options.

Expats in the UAE discover a wonderful life in this country. There are diverse options for both work and play, while the country has excellent universities and schools for education. The Government is also supportive about building a huge base of small and medium businesses in the country. All of this has fuelled the rise of the expat population in the UAE.

Where there are expats, there are trends of money being sent from the UAE to various parts of the world. At the beginning of every month, offices across the country pay their employees their monthly salaries. It is a normal occurrence for at least 1,000 Dirhams to be sent back home to the expats’ dependent families.
Rightly recognising the need for expats to remit money quickly and efficiently to their home countries, premium banks in the UAE are offering customers myriad transfer options. These money transfer options, far different from the usual money transfer outfits, are operated via a large banks’ network. It is known as a ‘bankto bank’ money transfer.

The bank to bank money transfer has found favour amongst the country’s expats in a major way. For one thing, premium banks are linked to all the major banks in the world via a global network. They are also connected with other banks’ offshore branches. More significantly, some banks in the UAE have their own branches in other countries such as India. Thus, with a wide intra- and inter-bank network already in place, the bank to bank money transfer process becomes very simple indeed.
The transfer process is further helped along by a number of the world’s major currencies being offered at excellent exchange rates.

How to transfer money to other countries

If you are a customer with a UAE-based bank, you can do a bank to bank money transfer with speed and security. Your bank will give you a list of partner banks in the country of your origin. If your UAE bank has a branch in your home country, the process becomes not just easy but also more economical. In this case, the bank will not charge a service charge per certain amount of Dirhams remitted, but there will be a fixed charge for a transaction (whether large or small).

The bank to bank money transfer model is largely dependent on the Internet banking technology, which employs NEFT and RTGS for remittance. The banks will deduct service charges also based on numbers of transaction and transaction fees with partner banks.

When using bank to bank money transfer between a UAE bank and another bank, the UAEFTS (UAE Funds Transfer System) comes into play. Depending on the bank and its systems, the money is credited either within minutes or within 24 hours.