If you’re in India, you have probably seen the 100-year-old Canara Bank in your locality. Started back in 1906, it was nationalized in the late 1960s and has been expanding rapidly ever since.¹ Let’s take a deeper dive into what Canara Bank can offer for moving money internationally, how much does it cost and time it takes. Canara Bank almost exclusively works with their own account holders, so we can help look at other options if you hold your money elsewhere.
While state-run banks can provide a level of comfort, they often haven’t kept up with new technology that makes transfers secure, faster and cheaper. Wise is FCA regulated and eliminates all the hassle of transferring money at a bank branch.
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Canara Bank has quite a few options to receive remittances in India. There are some specific relationships with Middle East banks especially to make it easier to receive money. Let’s take a look at the options.
RemitMoney is an online option for Canara and non-Canara Bank account holders Canara Bank has made arrangements with banks in Oman, UAE, Qatar, Bahrain, Kuwait, and Saudi Arabia to be able to use RemitMoney to move funds to beneficiaries in India.²
RemitMoney sets their own exchange rate, which is lower than the mid-market rate (the rate you see on Google). The difference between their rate and the mid-market rate encompasses the fees and charges for the transaction. You won’t have to pay any fees as a receiver, but the money you receive will be less than the gross amount the sender sent.
Bank transfers take 5 working days
There are no additional fees or charges to receive funds
The funds are available in your Canara Bank account instantly.
Canara has partnered with Western Union to allow for money to be sent to resident Indians in their Canara Bank account from its many locations globally. You can receive the money directly in your bank account or in cash.
You won’t receive any additional fees as a receiver of funds through Western Union. But Western Union does tack on fees depending on how your sender pays for the transfer and sets their own exchange rate to be less than the rate they use between banks. In this way, they make a profit on every transaction.
If the sender is paying for the transaction using a debit or credit card the payment can be in your account or in cash at Canara Bank in 1 day or less. But if they are paying the transaction by bank transfer, it can take up to 4 business days⁴.
You can receive money from NRIs abroad through Canara's SWIFT network⁵. Make sure to give your sender your details:
- Your name
- The name of your bank and it’s IFSC code
- Name of the branch/ city/ state/ pin
- 13 digit Canara Bank Account number
- The purpose of remittance
There are no additional charges to receive a SWIFT transfer and it would be at the Canara Bank rate, which similarly less than the mid-market exchange rate.
SWIFT transfer can take 2-5 business days to be in your account.
You can receive money in your Canara Bank account from an NRI who deposits a check in the correspondent exchange companies and banks in the UAE, Bahrain, Qatar, Kuwait, and Oman.⁶
There won’t be any additional charges as a receiver. However, similar to all the other options, the exchange rate is set by the bank and favors them, not you and the sender.
This depends on which bank the sender chooses, but can be close to the usual time of 5 working days.
The fees to receive funds through Canara Bank are⁷:
|Receiving funds in INR|| |
|Receiving funds in foreign currency||For individuals 0.1125% subject to a minimum of 100 and a maximum of 1000.|
The time it takes to receive money with Canara Bank really depends on which option your sender uses, where they are located and how they pay for the transaction.
With so many confusing options to receive money, how do you know you’ve picked the best one? Often the top factors are transfer time, fees, security and ease of use. Wise has been the best choice for over 4 million users globally. With its transparency, low fees and getting the exchange rate you see on Google, there are no surprises. On top of that, you can transfer money on the go and it is so simple to track the transfer so you know exactly when you are receiving the money in your account. Wise is a new smart way to move money around the world.
If you hold an account with Canara Bank, the best way to send money abroad would be using the wire-transfer SWIFT method at your local branch.
If you are sending money abroad for the first time, it would be best to head to your local Canara Bank branch. You will have to complete the A2 Form and necessary KYC documents before sending.
Make sure that you have all the following information before starting the process.
- Your contact information
- Currency of remittance
- Amount of remittance
- Value date
- Beneficiary’s bank information
- Beneficiary’s account number
- Beneficiary’s name
- Purpose of remittance
- Respective send money form
Once you have completed all the forms, the bank branch official can help you with executing the transfer.
To send money abroad with Canara it is a flat ₹500 commission charge⁸ and you will get the exchange rate that Canara sets. These charges can really make a difference in what your recipient receives at the other end.
Transfers through SWIFT can take between 2-5 days but depends on your unique transaction and the destination.
You will receive a transaction confirmation and code when you place your transfer. You can contact Canara Bank by phone or ask at your branch to determine the status of your transfer.
The true cost of Canara really starts to pile on whether you are receiving or sending money. In many cases, Canara has their own fees but also requires you to receive money through a third party that has its own fee structures. You are then hit with weak exchange rates which in the end means that less money gets in hand.
Here is how the difference in the exchange rate for Canara vs the mid-market exchange rate can really add up:
|Mid-Market Exchange Rate||69.74||69,74|
As of May 30, 2019
On top of this, Canara also has legacy systems that can make the transfer process confusing and slow.
New money transfer services like Wise provide you the real mid-market exchange rate. So the rate you see on Google or Reuters is what you get on your transfer.
Want a more clever way to send money? With transfers that can be done from your phone, tracked easily and delivered quickly, you’ll understand why Wise does over $4 billion in transfers every year. If security is a priority, Wise is FCA regulated and you can always know where your transfer is with transaction tracking. Plus Wise uses smart tech to bring down the costs on international transfers, which is around 90% more efficient than banks.
Best yet, 90% of all money transfers to India are delivered in 1 business day from the moment the payment is received. Fast, safe and good exchange rate- it is a win-win situation. Let’s leave banking to the legacy banks, but choose Wise for your global money transfers.
Sources used for this article:
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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