News: Reliance Capital secures Western Union linkage

(DNA 17/02/2007) Mumbai - Reliance Capital Ltd, the Anil Dhirubhai Ambani Group financial services firm, has added another dimension to its business basket. The company would now allow people to send/ receive/ money to/from abroad through Reliance Communications and Reliance Mutual Fund outlets.

Reliance Capital has become a principal agent of global remittance company Western Union through its acquisition of Travelmate Services (India) Pvt Ltd in November 2006. Travelmate has been a principal agent for Western Union for more than 10 years.

"Western Union aims to cover 2000-3000 Reliance outlets in the medium-term and this number will go up as the business expands," said the spokesperson with Western Union Financial Services.

Western Union has already tied-up with the Indian post office for remittance services. It also has links with banks such as State Bank of India, Canara Bank, Bank of Baroda, Bank of Baroda, Punjab National Bank, Vijaya Bank and Andhra Bank.

Reliance Capital spokesman Sharad Goel refused to comment when asked how big a role the company will play in the new venture. He did not give details on the agreement with Western Union Co.

Western Union is a leading remittance company in the world, cornering about 15% of the $23.4 billion worldwide remittance market through its network of about 2,85,000 locations in 200 countries, and about 600 agents.

Both Western Union and Reliance Capital see huge potential especially in tier II and tier III cities, the spokesperson said. In Indian, Western Union has got a 36,000 agent network.

"We are looking forward to a mutually beneficial and long-term relationship with Reliance Capital," said Anil Kapur, managing director-South Asia, Western Union Financial Services.