Overseas travel insurance policy – Apart from emergency medical care costs, this covers loss of passport, documents and baggage. It also covers fraudulent charges made on your credit/debit card. (Representative Image)
Aeldra, the US-based fintech start-up, has started offering US bank accounts to Indians without a social security number or a US address. So, using an app, now you also open a bank account in the US with an Indian passport.
Sukeert Shanker, the founder and CEO of Aeldra, said in a release, "The bank account can be opened with an Indian passport and other local documents for KYC (know your client). We are in the beta phase and opening about 30 accounts a day. We have a waitlist of about 5,000 customers who want to open a US bank account."
Federal Deposit Insurance Corporation and a Mastercard debit card offers $250,000 insurance with the bank account. For account maintenance fees, mobile banking, debit card etc. Aeldra does not charge any fee.
Aeldra is a neo bank that means it doesn’t have a banking license. With the support of established banks, it offers banking services. Using technology such as artificial intelligence and machine learning, neo banks offer better solutions than traditional banks. Aeldra has partnered with Blue Ridge Bank.
The company is planning to offer similar services for bank accounts in Canada, United Kingdom and Australia. Customers from any part of the world should be able to open a bank account in these markets using their passport and other local documents.
Customers who want to invest in the US are the ones Aeldra is targeting.
Shanker said, "There are many Indians who invest in the US for different reasons. They may want to take an exposure to the market. They could be traveling to the country for business or because they have relatives. There are others who start remitting money abroad as they want to send their children for further studies to the US."
A high-yield savings account, dedicated concierge, investment and trading facility, credit card, and home loans are available for customers.
The bank is also targeting students, freelancers who get work from the US, and micro, small and medium enterprises apart from affluent Indians.
Under the Reserve Bank of India (RBI) Liberalised Remittance Scheme, an Indian citizen is restricted to remit amount abroad. Each financial year, up to $250,000 can freely be remitted to a foreign country under this scheme.
For specific purposes, the regulations allow remittance. For example, an individual can remit funds to another country for private or business travel, gift or donation, employment, emigration, maintenance of close relatives, medical treatment, and education. Individuals can also remit money to invest abroad.