Indian Overseas Bank : Inward Foreign Remittance Experience

[tfbeginner210]

@harshitharlalka
Thanks for the detailed post with breakup of charges and the IOB charge estimator link.
Were you able to get the FIRC easily from IOB? Any idea on the process and fees?
Read that it is a bit difficult to get it in PSU banks.

 

[harshitharlalka]

@harshitharlalka
Thanks for the detailed post with breakup of charges and the IOB charge estimator link.
Were you able to get the FIRC easily from IOB? Any idea on the process and fees?
Read that it is a bit difficult to get it in PSU banks.

I didn't need an FIRC, as I understand FIRC is not required for remitting investment income.

 

[fakeusername]

They told me they don’t control the rates on savings accounts. Is there any other way to negotiate the rates?

 

[harshitharlalka]

They told me on saving account they dont control they rates, is there any other way to negotiate rates?

The branch doesn't have experience with inward remittance then. Contact IOB treasury desk fedcar@iob.in

 

[fakeusername]

The branch doesn't have experience with inward remittance then. Contact IOB treasury desk fedcar@iob.in

I visited the branch again today and shared your example. They told me to send an email each time I am about to receive a remittance, and they will offer better rates. Thanks!
They just asked me to keep some balance in the account for 15–20 days after receiving the funds

 

[harshitharlalka]

I visited the branch again today and shared your example. They told me to send an email each time I am about to receive a remittance, and they will offer better rates. Thanks!
They just asked me to keep some balance in the account for 15–20 days after receiving the funds

What rates they offered you? How much difference as compared to IBR ?

 

[fakeusername]

What rates they offered you? How much difference as compared to IBR ?

They just told me better rates so lets see, I'll update here next month
They also ask me how much your friend is getting so I said 10 paise..
Normally when I get remittance , I can see its around 30-32 paisa difference from google rate

 

[Odyssey]

They just told me better rates so lets see, I'll update here next month
They also ask me how much your friend is getting so I said 10 paise..
Normally when I get remittance , I can see its around 30-32 paisa difference from google rate [including all charges]

Bro, your username is so genuine🗾

 

[ranjanpr17]

Thanks OP. This helped a lot.
I did the FIRC transaction recently. Got charged Flat Rs 400 as IOB charges for ~USD600, also no intermediary charges. The rate offered was TTBuy rate of the day mentioned in IOB Forex card rate. No preferential or better rates provided. The branch manager told that for any amount same rates will be provided. Any way to negotiate better rates?

 

[harshitharlalka]

Thanks OP. This helped a lot.
I did the FIRC transaction recently. Got charged Flat Rs 400 as IOB charges for ~USD600, also no intermediary charges. The rate offered was TTBuy rate of the day mentioned in IOB Forex card rate. No preferential or better rates provided. The branch manager told that for any amount same rates will be provided. Any way to negotiate better rates?

As far as I know better rates negotiation would need atleast upwards of 5K USD.

 

[Harry1]

What rates they offered you? How much difference as compared to IBR ?

How do we know what is IBR rate? I got IBR minus 10 paise rate as quote from Axis for special corporate approval.

Conversion was done at 90.29 on 4th December, when Google rate was around 90.1-90.2. But today conversion was done at 90.2, when google rate was around 90.3. How do I verify that these were indeed IBR minus 10 paise?

Just sharing my experience with Axis for other's reference.

Apart from this, there was intermediary bank charges of 10-50 USD depending on amount (deducted by intermediary bank itself). For small amount, this can be significant percentage. I think amount may vary also based on which intermediary bank you select. But there was no clear info on which bank charges how much.

Also, Axis charged 18% gst on forex conversion fee (Fee wasn't mentioned anywhere), and I wasn't able to figure out exact calculation of the gst part, as it was much higher than 18% of 10 paisa (actually around 5-6 rupees, which is not even possible) for smaller amount and much lower than 10 paisa for large amount.

In total including all charges, I got about 88.8 for small amount (due to intermediary charges) and 90.11 for larger amount. Google rate was roughly 90.1-90.35 for both days. So, I would say it beats IOB for larger amount at least.

 

[harshitharlalka]

How do we know what is IBR rate? I got IBR minus 10 paise rate as quote from Axis for special corporate approval.

Conversion was done at 90.29 on 4th December, when Google rate was around 90.1-90.2. But today conversion was done at 90.2, when google rate was around 90.3. How do I verify that these were indeed IBR minus 10 paise?

Just sharing my experience with Axis for other's reference.

Apart from this, there was intermediary bank charges of 10-50 USD depending on amount (deducted by intermediary bank itself). For small amount, this can be significant percentage. I think amount may vary also based on which intermediary bank you select. But there was no clear info on which bank charges how much.

Also, Axis charged 18% gst on forex conversion fee (Fee wasn't mentioned anywhere), and I wasn't able to figure out exact calculation of the gst part, as it was much higher than 18% of 10 paisa (actually around 5-6 rupees, which is not even possible) for smaller amount and much lower than 10 paisa for large amount.

In total including all charges, I got about 88.8 for small amount (due to intermediary charges) and 90.11 for larger amount. Google rate was roughly 90.1-90.35 for both days. So, I would say it beats IOB for larger amount at least.

Don't check the live google price for comparison. Check the published rate of your bank for the day (you'll find in their website, just Google it). Every bank publishes their default rates everyday usually in the morning which is applicable for the entire day.

Check TTBuy & TTSell Rates, the midpoint will be IBR rate.

 

[Harry1]

Don't check the live google price for comparison. Check the published rate of your bank for the day (you'll find in their website, just Google it). Every bank publishes their default rates everyday usually in the morning which is applicable for the entire day.

Check TTBuy & TTSell Rates, the midpoint will be IBR rate.

Axis site shows Today's rate of 88.33 and 91.63. Mid point is 89.98. But they offered me 90.2. How is that possible?

Axis Bank - Corporate Currency Convertor

I do see they updated the page at 7:26pm, so not sure if they took rate before that. My money was credited around 7:40pm only.

 

[ranjanpr17]

As far as I know better rates negotiation would need atleast upwards of 5K USD.

Yes I know. I just did small amount to know about charges being applied. Overall I got on 8th Dec, (600@89.94 - 400). I am not sure if the BM was even aware of IBR rate. I asked him about transferring close to 100k USD in 2 or 3 months, he said no other charges except for 400 rs. I could not negotiate at all with him for better rates. BTW how much is difference between IBR and bank rate on average and is there anyway to check IBR historical rate?

 

[harshitharlalka]

Yes I know. I just did small amount to know about charges being applied. Overall I got on 8th Dec, (600@89.94 - 400). I am not sure if the BM was even aware of IBR rate. I asked him about transferring close to 100k USD in 2 or 3 months, he said no other charges except for 400 rs. I could not negotiate at all with him for better rates. BTW how much is difference between IBR and bank rate on average and is there anyway to check IBR historical rate?

Already mentioned about the rate I received compared to IBR in the post.

If your bank manager not negotiating rates, then try the treasury desk email.