Which bank gives the best exchange rates for money transfer?

money-transfer-indiaExchange rate is nothing but that the rate at which one currency is exchanged for another.It can also be termed as the value of currency in one country in terms of currency of another country. Exchange rate is also called as foreign exchange rate or forex rate or FX rate. The value changes everyday depending on the economic condition of the countries.For example, if 1 dollar = Rs. 62 in a day and if you want to transfer $100 to India, you may not receive Rs.6200 at the other end because the banks may add transaction fee, service tax etc and you will get an amount less than Rs.6200 and that depends on the bank through which you are transferring money. Different banks in India will have different exchange rates and other charges. So one has to choose the bank which offers the best value with less fees.

The exchange rate may be either Indicative exchange rate or Confirmed exchange rate.In the Indicative method,the exchange rate will be applied on the date and time of conversion of the money whereas in confirmed rate method, the exchange rate is fixed at the time of initiation of the transfer. So it is also called Fixed Rupee Transfer.

Banks giving the best money exchange rates to India

Let’s take a look at which banks give the best exchange rates from India to USA.

1. ICICI – Money2India

ICICI Bank offers the Money2India facility for transferring money to more than 100 banks in India from USA.The current exchange rate can be found out from the Exchange Rate Calculator. The remittance charge varies depending on the mode of transfer and the amount.

E-transfer – $2 (amount <= $1000), $0 (amount > $1000)
Express transfer – $5 ( irrespective of the amount)
Power transfer – $2 (amount <= $1000), $0 (amount > $1000)

The service tax is calculated as below.

For amount <= Rs.1 lakh – 0.12%
For amount > Rs. 1 lakh and <= Rs. 10 lakh 0.06%
For amount >=Rs.10 lakh – 0.012%

In addition to service tax, education cess of 3% on the tax is also applicable.The exchange rate usually has two slabs, one for amount < $10000 and another for amount >= $10000. The second exchange rate is better than the first one. The delivery of the transfer amount can be a demand draft,bank account,remittance card and visa card account. ICICI Bank both fixed and indicative exchange rates.

2. SBI Express Remit

SBI Express Remit is one of the safest ways for transferring money to India.SBI does not charge anything for remittance but it has other fixed charges like  currency conversion charge – Rs.25 ,Interbank money transfer charge – Rs.6 (up to $500). The service tax is calculated as below.

For amount <= Rs.1 lakh – 0.12%
For amount > Rs. 1 lakh and <= Rs. 10 lakh 0.06%
For amount >=Rs.10 lakh – 0.012%

In addition to service tax, education cess of 3% on the tax is also applicable.

3. HDFC Bank – Quick Remit

HDFC Bank offers Quick Remit facility for transferring money to India from USA. The current exchange rate can be found from the Exchange Rates page. The remittance charge is NIL in HDFC Bank. The service tax is calculated as below.

For amount <= Rs.1 lakh – 0.12%
For amount > Rs. 1 lakh – 0.06%

In addition to service tax, education cess of 2% on the tax is also applicable. The minimum and the maximum amount per transaction are $100 and $5000.The transfer can be tracked online.

4. Axis Remit

Axis Bank offers two types of transfers namely ACH transfer and Smart wire transfer.The exchange rates are based on the transfer amount which can come under the 4 or 5 slabs given. There is no remittance charge in ACH transfer. In Smart wire transfer, the remittance charge is $10 if the amount <= $10,000.

The service tax is calculated as below.

For amount <= Rs.1 lakh – 0.12%
For amount > Rs. 1 lakh and <= Rs. 10 lakh 0.06%
For amount >=Rs.10 lakh – 0.012%

In addition to service tax, education cess of 3% on the tax is also applicable.The current exchange rate can found from the Exchange Rates page

5. Click2Remit

Kotak Mahindra Bank offers the Click2Remit scheme for sending money to India.The sending mode can be direct transfer or online wire transfer and the receiving mode is demand draft, credit card or bank account. There is no transaction or remittance fee for the money transfer. The transaction limit is $5000 for direct transfer and $500000 for online wire transfer per day.In direct transfer, money is sent by activating the overseas account and making a transfer request. In wire transfer,the wire transfer instructions are sent to the remitting bank. The current exchange rates can be found from the Exchange Rates page.

6. BarodaRemitXpress

Bank of Baroda offers the BarodaRemitXpress for sending money to India and the transfer fees are calculated as below.

$11-$200 – $3
$201-$500 – $6
$501-$5000 – $9

The current exchange rate can be found from the Exchange Rates page.

7. IndRemit

Indian Bank offers the IndRemit for sending money to India  from and the transfer fees are calculated as below.

$11-$200 – $3
$201-$500 – $6
$501-$5000 – $9

The current exchange rate can be found from the Exchange Rates page. Online tracking of the transfer is available.The maximum amount per transaction is $5000.

8. IndusFastRemit

IndusIndBank offers the IndusFastRemit scheme for sending money to India from USA. The transaction fee is NIL in IndusIndBank  and the money reaches the receiver in 3 to 4 days.The current exchange rate can be found from the Exchange Rates page.

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About the author

Mani Karthik

Having lived in the USA, India & Middle East for over a decade, and having worked for big MNC's to startups, I have a lot to share with you. My aim is to help people, by sharing everything I've learned in life through this blog. Come join my pursuit of happiness! Be a smarter, richer, happier person. WhatsApp me at +001-408-489-4785. Subscribe to my YouTube channel here. <3

9 Comments

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  • I wanted to buy something from USA through debit card in amazon which deliver product to USA and then a cheap carrier service which ship that product to India…… They sell in usd but I have inr….. I don’t know anything about forex rates….. Present I have a debit card from Andhra bank…. I wanted to shift to any other bank and get a debit card from them…. Which banks debit card has less foreign exchange rate that I can use in USA too for my transactions overseas??

  • In this article you discussed on money transfer to India from abroad.which bank is good for transferring money abroad from India.

  • Good Information – How about Updating – the above 2017 may be out of date and also it is not clear whether the Institutions mentioned give the actual market rate and prevailing what time of day, when it is not Fixed rate

  • Thanks for great compilation. I have certain doubts. Request you to clarify.
    1. How the service tax can vary from one bank to another as it is dictated by govt’s rules?
    2. In general which banks offer better conversion rates ( excluding commissions )?
    3. Does the time of the day decide the rate of conversion or does it remains same through out a particularly day?

  • great piece of work, I like your above article. It helps me on my question thats make this post a great post.. thanks again..

MK Bio

Having lived in the USA, India and UAE, I share everything that I’ve learned in life. My aim is to help people by sharing whatever I know, through this blog. Come join my pursuit in becoming a smarter, richer & happier person! Here’s my story so far!

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