Investing in US stocks? Winvesta allows customers to remit funds via UPI, netbanking at zero fixed fee

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For buying US stocks from India, apart from the KYC formalities, you also need to adhere to the RBI’s Liberalised Remittance Scheme rules.

Fintech company Winvesta has launched a feature that enables its clients based in India to remit funds via UPI and net banking to fund their global investment accounts. One of the most tedious steps for Indians looking to invest in US stocks has been sending money to their overseas accounts. Normally, this process needs filling up A2 forms, paying high fixed fees, and even visiting a bank branch in many cases. Winvesta’s new feature will make investing in US stocks easy for its users.

In a statement today (November 23 2021), Winvesta said customers can remit funds for overseas investing through UPI or net banking. One just needs a bank statement, and the whole process takes less than a minute.

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Winvesta further said that apart from the ease of transaction, the process also cuts the fixed fees to Rs 0. In many cases, Indian residents otherwise need to pay a fixed fee of as much as Rs 2500 for transferring funds.

To send money on 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 foreign exchange rate that investors get is also more favourable compared to the majority of banking channels, the statement said.

Commenting on the new feature, Winvesta Founder and CEO Swastik Nigam said, “Winvesta’s mission has been to stay at the forefront of cross-border finances for India and lead the change. After India’s first multi-currency account, we are proud to introduce the country’s first and only UPI-based foreign remittances. This is a big step forward in making global investing accessible to every resident Indian.”

The easy funding feature is being rolled out to all Winvesta clients after a successful pilot run with a closed group, he added.

“Not being able to fund their account using a local payment method such as UPI or Netbanking was the biggest pain point for a lot of our clients. Winvesta and ecosystem partners have worked very hard over the last several 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 from it and invest efficiently.” said Rahul Gupta, Head of Product at Winvesta.

The statement further said that the new feature is part of a three-month cohort of the Regulatory Sandbox, and 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 today’s problems with cross-border payments.

RBI Cohort

Last December, the Reserve Bank of India had announced the second cohort with the theme of ‘Cross Border Payments’. Eight entities were selected to be a part of this cohort, including Cashfree Payments India Pvt Ltd. Cashfree Payments’ platform will facilitate the purchase of assets listed on foreign exchanges (e.g US Stocks and ETFs on Nasdaq, NYSE) by Indian investors via local payment methods. The outward payments are automatically attributed to the LRS quota of the individual.

The central bank had announced the opening of the first cohort under RS with the theme of ‘Retail Payments’. It has also decided on ‘MSME Lending’ as the theme for the third cohort, details of which it will announce in due course.

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