Best bank for inward remittance USD

[kartavya7sharma]

Hi all, I will receive a monthly payment in USD in my Indian Savings bank account.

Which bank offers Best conversion rate without any extra fee?
Currently I have Savings AC with PNB, HDFC, AU, and BOB.
Also, do I have to submit any application or tell the bank about an inward remittance beforehand?

 

[sharpened]

IOB first position and PNB second. Go to the forex desk and give them a heads up but there's minimum compliance for inward. Outward is a headache and a half

 

[0xfallup]

@kochiro . .

 

[_amit_]

I am not sure what you meant by extra fees. Every bank typically charges for services such as SWIFT/wire fees, FIRC (if applicable), markups on conversion, and GST where applicable. Private banks often have a higher margin on forex transactions, offering worse rates compared to public sector banks (PSUs).

IOB is generally a good option for inward remittance, as their rates are competitive. Occasionally, some banks might offer better rates than IOB on a case-by-case basis due to intermediary banks, but the difference is usually negligible.

However, being a government entity, the experience with IOB can depend significantly on the branch.

For IOB, the exchange rate is typically around 20-30 paise less than the market rate, which is quite favorable compared to other banks.

Other options include online apps/platforms compliant with OPGSP, such as Wise, PayPal, Payoneer, Mulya, Skydo etc

Skydo might offer better charges than other platforms. Although all platforms usually provide live forex market rates, their fees can go up to 2.5% or more of the transaction amount.

IOB's conversion credit is quite comparable than those offered by apps as well. However, being a PSU, they might be challenging regarding FIRC issuance and could require a branch visit if the branch manager is not competent.

Other PSU options include BoB and PNB, but the branch's understanding of forex transactions can vary as not all branches do forex regularly. It is good to find a branch that is well-versed in forex services, similar to how SBI and other PSUs have specialized "NRI" branches.

 

[mayankpatel]

I am not sure what you meant by extra fees. Every bank typically charges for services such as SWIFT/wire fees, FIRC (if applicable), markups on conversion, and GST where applicable. Private banks often have a higher margin on forex transactions, offering worse rates compared to public sector banks (PSUs).

IOB is generally a good option for inward remittance, as their rates are competitive. Occasionally, some banks might offer better rates than IOB on a case-by-case basis due to intermediary banks, but the difference is usually negligible.

However, being a government entity, the experience with IOB can depend significantly on the branch.

For IOB, the exchange rate is typically around 20-30 paise less than the market rate, which is quite favorable compared to other banks.

Other options include online apps/platforms compliant with OPGSP, such as Wise, PayPal, Payoneer, Mulya, Skydo etc

Skydo might offer better charges than other platforms. Although all platforms usually provide live forex market rates, their fees can go up to 2.5% or more of the transaction amount.

IOB's conversion credit is quite comparable than those offered by apps as well. However, being a PSU, they might be challenging regarding FIRC issuance and could require a branch visit if the branch manager is not competent.

Other PSU options include BoB and PNB, but the branch's understanding of forex transactions can vary as not all branches do forex regularly. It is good to find a branch that is well-versed in forex services, similar to how SBI and other PSUs have specialized "NRI" branches.

Thanks for the detailed response.

 

[_amit_]

I sent an email to fedcar@iobnet.co.in requesting charges schedule and gave them a sample figure of $5000.

Amount in USD	$5000
Rate	83.23
Total in INR	416150
For Amount >1L and <10L	316150
For Remittance 1000 + (316150/200)	2581
FCY conversion GST (18% of 2581)	465
GST on remittance (150 +18%)	177
Total deduction	642
Final credit	415508

This is quite promising. Also they did not mention, but I assume they used SWIFT for example


Though I am not sure why they did not deduct other charges in the final amount and only GST. FIRC is 250 which they did not include in the calculation.

I did some digging and found their charges schedule, but still not sure about the deduction.

https://iob.in/upload/CEDocuments/ScheduleofChargeswef10022020.pdf

So assuming they provided the correct details, its better than all the app/platform as well.


Along with this, I also asked if they provide preferential rates for SB-HNI to which this is what they reply:

Preferential exchange rates are provided based on the MT103 received and not the type of the customer.
NOTE: MT103 is for SWIFT

 

[paxauquabriba-4876]

is iob online acnt possible or only branch ?

sb ? (SB-HNI)
MT103 ?
FIRC is 250 ?

 

[_amit_]

is iob online acnt possible or only branch ?

Online is possible:

https://vkyc.iob.in/customerVkyc/#/digitalAccount

SB-HNI

https://www.iob.in/SB-HNI

MT103 ?

This is a document type for SWIFT. Internal to forex, you can ignore this for normal usage. Does not matter to consumers much.

FIRC is 250 ?

Yes, FIRC is 250 extra. I guess there would be GST on top of that too.

 

[Dragon_slayer]

IOB is the best option available. Open a simple 1000 balance account. Before opening account talk with the people in branch, it would be helpful to maintain a good relationship with someone from bank. As only that person will really help you solve your IOB account issues without you having to visit bank. There customer support is useless.

 

[soleja1]

Axis bank is good imo

 

[Ezio]

IOB is the best option available. Open a simple 1000 balance account. Before opening account talk with the people in branch, it would be helpful to maintain a good relationship with someone from bank. As only that person will really help you solve your IOB account issues without you having to visit bank. There customer support is useless.

Can you please let me know which savings account is that?
If I go and ask them for a salary account, will they be able to open a 0 balance account for me?

 

[moneyMaker]

IOB or IDFC, maybe current a/c if possible.

 

[Ezio]

IOB or IDFC, maybe current a/c if possible.

Current A/c?
Can you help me with this?

I cannot see the option to DM you.

 

[Dragon_slayer]

Can you please let me know which savings account is that?
If I go and ask them for a salary account, will they be able to open a 0 balance account for me?

Normal Savings account, requires 1000 MAB

 

[sunit123]

1. If it is personal payment, it is okay to receive in savings accout else open current account
2. IOB and PSU banks do not provide FIRC...IT or GST department will ask for the same...psu bank employees dont know what is FIRC
3. Among private banks, indusind bank is best for accepting inward remittance..

 

[Ezio]

1

1. If it is personal payment, it is okay to receive in savings accout else open current account
2. IOB and PSU banks do not provide FIRC...IT or GST department will ask for the same...psu bank employees dont know what is FIRC
3. Among private banks, indusind bank is best for accepting inward remittance.

1. This will be my salary basically, every month. Do you still think I should open a current account? And any reason why a current account would be better than a savings account.
2. Damn, so any PSU bank is a no-go then?
3. So IndusInd bank provides the best rate according to you?

 

[sunit123]

1


1. This will be my salary basically, every month. Do you still think I should open a current account? And any reason why a current account would be better than a savings account.
2. Damn, so any PSU bank is a no-go then?
3. So IndusInd bank provides the best rate according to you?

1. For salary income, current account not required...As per T&C of savings account, it cannot be used for professional purpose therefore Current account is required....In India, Salary accounts are savings account only....Still, you may confirm with your employer or CA i.e. whether current account required or not.
2. Right. If it is salary then FIRC is required and IT department may ask for the same
3. Yes (Among private banks)...Indusind bank was also suggested by many senior members of this forum.

 

[Ezio]

1. For salary income, current account not required...As per T&C of savings account, it cannot be used for professional purpose therefore Current account is required....In India, Salary accounts are savings account only....Still, you may confirm with your employer or CA i.e. whether current account required or not.
2. Right. If it is salary then FIRC is required and IT department may ask for the same
3. Yes (Among private banks)...Indusind bank was also suggested by many senior members of this forum.

1. Got it. Thanks man.
2. Oh ok.
3. Got it. Will look at IndusInd bank

 

[moneyMaker]

IndusInd bank

Still think IDFC is way better, I had a bad experience with IndusInd bank