Summary: Although opting for SBI bank for your international transfer may seem like the most efficient and cost-effective choice, alternatives such as BookMyForex could potentially provide a more affordable and convenient service. Continue reading to learn more about SBI International Money Transfers.
SBI, or the State Bank of India, is one of the largest and most reputed banks, headquartered in Mumbai, India. The bank offers a diverse array of banking services including international money transfers. SBI has a presence in more than 30 countries and is a preferred choice for many customers looking for secure and prompt overseas transactions. However, SBI’s international money transfer services have certain drawbacks, especially with its fee structure. In this blog, we will provide you with all relevant details as well as a comprehensive overview of SBI’s international money transfer services.
Receiving International Funds in India from Abroad via SBI Bank
Receiving international funds in India from abroad via SBI Bank can be done through several methods, each with its own advantages and limitations. Let’s explore the different ways you can receive your international funds with SBI Bank.
Methods of Inward Remittance with SBI Bank:
SBI Express Remit
SBI Express Remit offers a convenient solution for sending small-value funds to India from various countries, enabling transfers to personal accounts without the necessity for both sender and receiver to hold SBI bank accounts. Upon registration on the SBI Express Remit website, users can initiate transfers at their convenience. SBI oversees the process by initially transferring funds to its UK account before remitting the amount in Indian Rupees to the designated Indian bank account. While this method is efficient, it’s advised to compare exchange rates and associated charges before proceeding with transfers.
SBI Demand Draft (DD)
For those preferring SBI Demand Drafts (DD), these can be issued in either foreign currency or Indian Rupees, in the name of the sender or any other beneficiary. However, DDs usually have a longer processing time as physical copies need to be sent to India, even posing a risk of loss during transit. Additionally, currency conversion charges and collection fees apply, subject to prevailing exchange rates and service taxes.
SBI Wire Transfer
SBI Wire Transfer allows funds to be sent from overseas bank accounts to Indian beneficiaries via the SWIFT network. Specific details including the SWIFT code, beneficiary’s bank account number, SBI branch code/IFSC code, and purpose of remittance are required. Note that SBI transfers do not seem to be cost-effective, as they have additional SWIFT fees, ranging from $15 to $45 per transfer.
Western Union (WU)
Western Union (WU) facilitates inward remittances deposited in overseas WU offices, subject to RBI guidelines. There are limitations regarding the types of remittances permitted, maximum amounts, and the number of transactions allowed per individual beneficiary per calendar year. Under this method, only personal remittances are permitted. Donations or contributions to charitable institutions or trusts, trade-related remittances, payments for property purchases, investments, or credits to NRE accounts cannot be made through WU transfers.
The maximum amount that can be sent through WU payable by cash is capped at USD 2,500 or ₹50,000. Any sum exceeding this threshold will be disbursed via an account payee cheque, demand draft, payment order, or directly credited to the beneficiary’s bank account. A single individual beneficiary can receive a maximum of 30 remittances under this scheme during a calendar year. Furthermore, while WU transfers are popular, they may not always be the most economical option.
SBI Personal Cheque
SBI Personal Cheque is a traditional method for international remittance. You have the option to issue a personal cheque from your foreign bank account in either Indian rupees or foreign currency. This cheque can be deposited in Indian branches, but processing times vary depending on the country and bank involved. Currency conversion rates apply based on prevailing rates at the time of conversion.
Transfer Speed for Inward Remittance with SBI Bank
The duration for inward remittance via SBI varies depending on the transfer method utilized. The table below provides estimates for the time taken for each type of transfer:
| Transfer Method | Transfer Speed |
|---|---|
| Express Remit | 1 - 3 business days |
| Demand Draft | 7 - 28 business days |
| Wire Transfer | 1 - 2 business days |
| Western Union | 1 - 2 business days |
| Personal Cheque | 10 - 60 business days |
Fees & Charges for Inward Remittance with SBI Bank
The charges for receiving SBI international money transfers across different remittance methods are detailed below. Additionally, banks such as SBI may impose markup fees above the real exchange rate, potentially increasing the overall cost of your transfer.
| Transfer Method | Transfer Charges |
|---|---|
| Express Remit | ₹250/- |
| Demand Draft | 0.30% of the amount, with a minimum of ₹300/- |
| Wire Transfer | Current exchange rate + markup @0.125% + interest @ 15% (depending on bank branch) |
| Western Union | No transfer fee, but a markup is added to the mid-market exchange rate |
| Personal Cheque | Current exchange rate + markup @0.125% + interest @15% + ₹100 |
Note that Goods and Services Tax (GST) will be imposed in addition to the specified charges, as per the slab mentioned below.
1. Up to ₹1,00,000: 1% of the gross amount exchanged, with a minimum of ₹250.
2. From ₹1,00,001 to ₹10,00,000: ₹1000 plus 0.5% of the gross amount exceeding ₹1,00,000 up to ₹10,00,000.
3. Above ₹10,00,000: ₹5,000 plus 0.10% of the gross amount exceeding ₹10,00,000, capped at a maximum of ₹60,000.
Sending Funds Overseas from India via SBI Bank
Sending money from India to other countries falls under the purview of the Reserve Bank of India (RBI) through the Liberalized Remittance Facility for Resident Indians. This facility allows for outward foreign remittance of up to USD 250,000 per financial year.
To transfer money abroad from India with SBI, you need to be a bank customer for at least one year, and your account should comply with KYC requirements with a PAN number linked to it. Additionally, you need to have transaction rights activated on your Internet banking account. Let’s explore the different ways you can send funds overseas with SBI Bank:
Methods of Outward Remittance with SBI Bank:
Rupee Outward Remittance
The LRS scheme allows resident individuals in India to send money abroad for various permissible purposes, such as travel, education, and maintenance of close relatives. The remittance limit under LRS for wire transfers abroad is USD 250,000 per financial year.
NRO Accounts
NRO accounts are used by NRIs to hold their Indian rupee earnings. While SBI itself charges a flat fee of INR 100 for wire transfers from NRO accounts, additional charges may be incurred from the correspondent bank involved in the transaction. These charges can vary depending on the bank and the destination country.
NRE or FCNR Accounts
NRE and FCNR accounts are specifically designed for non-resident Indians (NRIs) to hold foreign currency in India. There are no charges levied by SBI for wire transfers from these accounts. Hence, this is the most economical option for NRIs to send money abroad from India.
Transfer Speed for Outward Remittance with SBI Bank
| Wire Transfer Method | Transfer Speed |
|---|---|
| Rupee Outward Remittance | 2-3 business days |
| NRO Accounts | 3-5 business days |
| NRE or FCNR Accounts | 1-2 business days |
Fees & Charges for Outward Remittance with SBI Bank
| Wire Transfer Method | Transfer Charges |
|---|---|
| Rupee Outward Remittance | 0.125% of the remittance amount, with a minimum of ₹ 125/- |
| NRO Accounts | ₹100/- + other charges |
| NRE or FCNR Accounts | Nil |
Steps for Sending Money Abroad with SBI Bank
SBI offers a straightforward process for international money transfers. The bank claims to offer competitive exchange rates and transparent pricing, with all fees clearly stated before proceeding with the transaction. Here’s a step-by-step guide:
Step 1: Registration
If you’re not already an SBI customer, you need to first register for an account by providing your personal information and banking details.
Step 2: Transfer Mode
You can choose to transfer funds through SBI’s online portal, mobile banking app, or by visiting an SBI branch in person, depending on your preference and convenience.
Step 3: Transfer Details
You must provide all necessary information for the international transfer, including the beneficiary’s name and bank account details, the SWIFT/BIC code of the recipient’s bank, the purpose of the transfer (e.g., education, medical expenses), and the desired transfer amount and currency.
Step 4: Calculate Charges
You can utilize SBI’s international money transfer charges calculator to estimate the total cost of the transfer.
Step 5: Finalize the Transfer
You will next have to select the recipient’s country and currency, enter the transfer amount, and proceed to confirm the transaction, thus completing the money transfer process.
Things You Need for a Successful Online Money Transfer
The specific details are required to process your online money transfer, however, this may vary depending on the currency and country you’re sending money to. Typically, you’ll need:
- The recipient’s full name
- Their account number
- The name and address of their bank
- Additional information such as Swift code
- The reason for the payment
Countries Where You Can Transfer Money from India with SBI Bank
Resident Indians can send outward remittances up to a maximum value of 250,000 USD per financial year with SBI bank. Money can be sent to over 200 countries, although restrictions apply to payments to Nepal, Bhutan, Pakistan, and Mauritius. Payments can be made in various currencies, including USD, EUR, GBP, SGD, AUD, CAD, NZD, etc.
A Quick, Secure, and Affordable Alternative: BookMyForex
While SBI bank’s charges may seem economical at first glance, they can be misleading because they do not fully disclose the markups added by them when mentioning the fees. When you search for a specific exchange rate on Google, you see the interbank rate, representing the genuine currency exchange rate at that instance. However, this is not the rate offered by SBI when initiating the transfer. The markup exchange rate applied by SBI can increase the total cost of your money transfer.
Moreover, SBI imposes a commission fee of 0.55% on the transfer amount, with a minimum fee of Rs 299 and a maximum fee of Rs 550. In addition, SBI levies a flat fee of Rs 194 per transaction, contributing to the total cost of the transfer. Furthermore, SBI applies a currency conversion fee ranging from 1.5% to 3%, determined by the exchange rate at the time of the transfer, which can further influence the overall cost of the transaction.
When you think of a quick, secure, and affordable way to transfer money abroad, think of BookMyForex – a MakeMyTrip group company and India’s most trusted forex platform. With the best rates and zero transfer charges, BookMyForex has revolutionized the way people send money abroad.
Comparison of SBI with Top Service Providers for Outward Remittance
| Features | BookMyForex | SBI Bank | Axis Bank | HDFC Bank |
|---|---|---|---|---|
| Exchange Rates | Live and Transparent Rates Rates Get Updated Every 3 Seconds | 2-3% Markup over Base Rates | Up to 3% Markup over Base Rates | 2-3% Markup over Base Rates |
| Transfer Charges | ZERO Use promo code: ZEROBANKFEE | Service Charges: INR 299-550, Bank Charges: INR 1000-1500 | Rs 1000+GST and Rs 500 Swift Charges | Up to USD 500 or Equivalent - Rs. 500+Gst, above USD 500 or Equivalent - Rs. 1000+Gst |
| Transfer Speed | 12- 48 Business Hours | Up to 72 Business Hours | Up to 24-72 Business Hours | Upto 72 Business Hours |
| Hassle-Free Booking Option | 24*7 Online Booking Option Available | Both In-Branch & Online Booking Options Available | Both In-Branch and Online Booking Options Available | Online Booking Is Available, but Not for All Remittance Purposes |
| Customer Service Support | On-Call and Online Customer Assistance | Lack of Dedicated Staff to Assist Customers | Both On-Call and Online Customer Support Available | On-Call Customer Support Available |
Conclusion
While sending your international transfer through SBI bank may appear to be the most efficient and cost-effective option, there are alternatives like BookMyForex that could potentially offer a more affordable, convenient, and quick service. With the best exchange rates and a host of other benefits, BookMyForex stands as the leading platform in India for international money transfers.
Disclaimer:
This blog serves as a general source of information and should not be considered professional advice from BookMyForex or its affiliates. Readers are encouraged to check the respective platform for specific details.
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