SBI International Money Transfer: Guide to SBI Remit, Foreign Exchange Rates, and Remittance Fees

Whether you're an NRI sending money back home, a resident Indian with overseas commitments, or someone abroad looking to remit funds to India, understanding the intricacies of international money transfers is crucial. State Bank of India (SBI), one of India's largest banks, offers various methods for international transfers, but navigating the fees, exchange rates, and processing times can be complex. This guide breaks down everything you need to know about SBI international transfers, including sending and receiving money. We'll review the associated costs such as transfer fees and the hidden markups on the exchange rates.

We'll also introduce you to Wise as an alternative that can help save you by offering international transfers at transparent fees and currency conversion at mid-market rates.

Table of contents
Sending Money to India with SBI Receive money from abroad with SBI Sending money abroad from India with SBI SBI international transfer charges and fees Meet Wise: A Transparent and Cost-Effective Alternative Wise Account (Available in Supported Countries Abroad)

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Sending Money to India with SBI: Options for NRIs and Others

There are several options for remitting money to India through SBI, each with its own set of procedures, fees, and processing times.

International Transfer to SBI Account in India

International wire transfers are a traditional method for sending money globally. Most banks, including SBI, are part of the SWIFT network, facilitating these bank-to-bank transfers. You can typically initiate a wire transfer online through your bank's portal or by visiting a branch. The funds are directly deposited into the recipient's SBI account in India.

What you need to know for Wire Transfers to SBI

SBI provides instructions for some options for NRIs or others to consider when sending money to India.¹

• Processing Time: Wire transfers usually take up multiple business days.
• Information Required: You'll need the recipient's full name, SBI account number, and the SBI branch SWIFT code.
• SBI's Correspondent Bank: While not always necessary, you can provide SBI’s correspondent bank list to your provider if required.
• Fees: Wire transfers typically involve a service fee from your bank and, more importantly, a hidden exchange rate fee. Banks often mark up the exchange rate, adding a hidden cost to every unit of currency converted.

Wise Tip: Before initiating a wire transfer, compare the offered exchange rate you're offered with the mid-market rate you usually see on Google. This will reveal any hidden markups. Consider using a service like Wise that offers the mid-market rate and transparent fees for potentially significant savings.

Send Money to India with Wise 🚀

Remit through SBI international branches abroad

If you are an NRI with a SBI account, you can go to a SBI international bank branches worldwide to transfer funds to India. These branches can assist with online banking, transfers, and other NRI services.

What you need to know about remittance through SBI International Brances

• Fees: Each country's branch has its own fee structure. For example, SBI branches in the U.S. might charge a fee for transfers below a certain amount, while transfers above that threshold may be free.
• Exchange Rate: Always compare the offered exchange rate with the mid-market rate to uncover potential hidden fees.
• Minimum Transfer Amount: Some branches, like those in the U.S., may have minimum transfer amounts.²

Sending to SBI through Exchange Houses in the Middle East

NRIs residing in the Middle East can utilize local exchange houses partnered with SBI to send money to India. These exchange houses are available in countries like the UAE, Qatar, Kuwait, Bahrain, Oman, and Saudi Arabia.³ You can find a list of SBI-partnered exchange houses online.

What you need to know about the Exchange Houses in Middle East

• Fees: You'll typically pay a transfer fee and an exchange rate fee to the exchange house.
• Exchange Rate: Be mindful of the exchange rate offered, as it may include a markup on the mid-market rate.

The exchange house will complete the transfer and you can generally expect to pay a transfer and an exchange rate fee.

Sending money to SBI through Remitly

SBI has a partnership with the online money transfer service Remitly, providing another avenue for sending money to India. With Remitly, you can send funds in multiple currencies, including USD, GBP, EUR, and SGD.

What you need to know about sending to India with Remitly

• Remitly Handles the Transfer: It's important to note that Remitly, not SBI, processes the transfer.⁴
• Fees: Remitly may offer fee-free transfers for certain amounts, but watch out for markups on the mid-market exchange rates.
• Website and App: You can send money through the Remitly website or mobile app.

Guide to Remitly Money Transfers for India 👉

While Remitly might seem convenient, we invite you to compare its rates and fees with Wise. Wise consistently offers the mid-market rate, ensuring transparency and potentially lower costs.

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Receive money from abroad with SBI

SBI offers several methods for receiving international funds in India:

SBI Express Remit

SBI Express Remit is designed for small-value transfers to India. It's available in many countries and doesn't require either the sender or receiver to have an SBI account. The sender registers on the SBI Express Remit website, initiates the transfer, and SBI handles the conversion to INR before depositing it into the recipient's Indian bank account. SBI charges a fee for Express Remit, and the exchange rate used may include a markup on the mid-market rate.

SBI Demand Draft (DD)

A Demand Draft can be created in either a foreign currency or Indian Rupees and deposited into your Indian bank account. While cost-effective, it's a slower method, as the physical DD needs to be mailed to India. If the DD is in a foreign currency, SBI will apply its exchange rate, which may include a markup on the mid-market rate. This method could take time as there is a need to send the physical copy of the DD to India. There is also a risk of the DD getting lost in the post³.

SBI Wire Transfer

You can receive funds directly into your SBI account via a wire transfer initiated from an overseas bank account through the SWIFT network. You have to mention the following details to your bank for international transfer to Indian bank account²:

1. SWIFT code
   • For money transfers up to USD 10,000 or equivalent: SBININBBFXD
   • For money transfers more than USD 10,000 or equivalent: SWIFT code of home branch of the beneficiary. In case the home branch does not have a SWIFT code, mention SWIFT code of any link branch or an SBI branch nearby in the same city/ state.
2. Beneficiary’s bank account number
   This bank account number is an 11 digit number with initial digit as non-zero. If asked, mention International Bank Account Number (IBAN) without any prefix or suffix SWIFT/ IFSC code in the IBAN field.
3. SBI branch code/ IFSC code
   For banks other than SBI, mention beneficiary’s existing CBS account number, bank name with branch and IFSC Code
4. Beneficiary’s full name and complete address
5. Remitter’s full name, address and account number
6. Purpose of remittance
7. Details of correspondent or intermediary bank
   In case remitting bank is not a direct correspondent of SBI

Western Union (WU)

SBI allows inward remittance deposited in overseas offices/ locations of WU. This method of receiving funds through SBI have some limitations as per the RBI guidelines⁴.

Guide to using Western Union with SBI

Western Union transfers are a popular way of receiving funds from overseas, but it may not be the cheapest. To get the most out of your money transfers abroad, make sure to compare providers vs Wise's exchange rates and transfer fees.

SBI Personal Cheque

Depositing a personal cheque drawn on a foreign bank account is a traditional but inefficient method. It involves lengthy processing times and currency conversion at SBI's rates², which may not be favorable.

Charges and fees for receiving money internationally with SBI

SBI international money transfer charges for various methods of remittance have been given below⁵ ⁶. Banks like SBI also charge extra over the real exchange rate, which may add significantly to the overall cost of your transfer. Note that the charges mentioned below can change over time and location.

Method of Remittance	Charges
Express Remit	₹250/-
Demand Draft	0.30% of the amount, with a minimum of ₹300/-
Wire Transfer	Current TT buying rate + exchange margin @0.125% + interest @ 15% (depending on bank branch)
Western Union	No charges for the receiver
Personal Cheque	Current T.T. buying rate + exchange margin @0.125% + interest @15% + ₹100
Goods and services tax (GST) as applicable will be levied over and above the charges specified.

GST for conversion of foreign currency to Indian currency or vice-versa was revised by the Government of India, Ministry of Finance with effect from 1st July 2017. The revised tax rates are as follows⁷:

• Up to ₹1,00,000: 1% of the gross amount of currency exchanged for an amount of ₹1,00,000, subject to minimum of ₹250/-
• From ₹1,00,001 to ₹10,00,000: ₹1000 plus 0.5% of the gross amount of currency exchanged for an amount of rupees exceeding ₹1,00,000 and up to 10,00,000
• Above ₹10,00,000: ₹5,000 Plus 0.10% of the Gross amount of currency exchanged for an amount of rupees exceeding ₹10,00,000 subject to Maximum amount of ₹60,000/-

How much time does it take?

Time taken for SBI remit depends on the method of transfer used. The table below gives the estimated time taken for each kind of transfer.³ ⁸ ⁹

Method of transfer	Time Taken
Express Remit	1 - 3 business days
Demand Draft	7 - 28 days
Wire Transfer	1 - 2 business days
Western Union	1 - 2 days
Personal Cheque	10 - 60 days

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Sending money abroad from India with SBI

Resident Indians can send money abroad through SBI under the Liberalized Remittance Scheme (LRS) of the RBI, which allows remittances up to USD 250,000 per financial year for specific purposes.⁹

Methods to Remit from India with SBI:

• FXOUT: Available at all SBI branches, this allows transfers up to USD 25,000 per transaction in various currencies.
• REMXOUT: Available to SBI internet banking users, this allows transfers up to USD 5,000 per transaction in USD, GBP, and EUR.

How to add international beneficiary in SBI

To add an international beneficiary, follow the below process¹²

• Log into your SBI account
• Click on ‘manage beneficiary’ and then click on ‘international beneficiary’
• Provide beneficiary details like name, bank account number, and SWIFT code and click register
• You will receive an OTP. Enter the OTP to register the beneficiary
• Next, approve the beneficiary. Click on the ‘approve now’ link. There are 2 ways to do this – OTP approval and branch approval
  • OTP approval takes between 4 hours to 1 day. If you select this method, you will receive an OTP on the mobile number linked to your SBI account. Enter the OTP and the beneficiary will be approved.
  • If you choose branch approval, you have to visit the nearest SBI branch and provide the details. The beneficiary will be approved immediately.

Send money to beneficiary

You can transfer the money internationally once the beneficiary is activated. To do this:

• Log in to your SBI account
• Select ‘International funds transfer’ under the payments/ transfers tab
• Remittance application form for fund transfer request will come up. Fill the form and submit it.

SBI international transfer charges and fees

Method of Remittance	Charges⁶
Outward remittances from NRE or FCNR (B) account through SWIFT/ Wire transfer	Nil
Foreign currency outward remittances from NRO account through SWIFT/ Wire transfer	₹100/- + actual out of pocket expenses for postage, courier and telegram charges
Rupee outward remittance	0.125% of the remittance amount, with minimum of ₹ 125/-
Goods and services tax (GST) as applicable will be levied over and above the charge specified.

How much time does it take?

SBI international fund transfers using FXOUT and REMXOUT are generally deposited in the beneficiary’s bank account within 2 to 7 working days.

Check status of money transfer

You can follow the below steps to check the status of the money transfer:

• Log into your SBI account
• Click on ‘Enquires’ tab and then ‘Status Enquiry’
• Enter the date on which the transfer was made.
• The list of transfers made on that date is displayed along with the reference id, transfer type and the status of the transaction
• If you need more details about the transaction, click on the transaction reference of the relevant transaction.

The true cost of international transfers with SBI

Speed, efficiency, and cost are the most important considerations while sending or receiving money abroad. Though the charges mentioned by SBI may seem low, but when you take into account the higher foreign exchange (forex) rate used by SBI, the costs can rack up very quickly.

When you Google a particular forex rate, the rate you usually see is called the mid-market rate. But this is not the conversion rate that is given to you by SBI when you initiate the transfer. This markup on the exchange rate can add significantly to the overall costs of your money transfer.

Meet Wise: A Transparent and Cost-Effective Alternative for International Transfers

Want to send fast transfers to India? Meet Wise. It is a low-cost and convenient way to send money to a local bank account or UPI accounts in India. And money on popular transfer routes to India can arrive in a local bank account within a few minutes.

International Money Transfers with Wise

Wise uses smart technology to offer:

• Mid-Market Exchange Rate: Wise always uses the mid-market exchange rate, with no hidden markups. You get the same rate you usually see on Google.
• Low, Transparent Fees: Wise charges a simple, upfront fee that's clearly displayed before you make a transfer. No hidden costs.
• Easy to Use: Wise's website and app are user-friendly, making international transfers simple and convenient. You can send and track your transfer online - no need to visit the bank.
• Send Money from India: Wise supports money transfer from India for international studies, travel, and medical expenses — at mid-market rate, and a clear transparent fee.

Wise Account: Your Multi-Currency Solution (Available in Supported Countries)

For those living abroad in supported countries, the Wise Account offers a powerful solution for managing multiple currencies, including INR.

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Benefits of Wise Multi-Currency Account:

• Hold and Convert Multiple Currencies: Hold balances in currencies and convert between them at the mid-market rate with low, transparent conversion fee.
• Local Account Details: Get local account details in multiple currencies, including USD, EUR, GBP, AUD, and more.
• Send Money to India at Mid-Market Rate: Easily send money to India at the mid-market exchange rate with low fees.
• Wise Card: Available in supported countries, the Wise card is perfect for international travelers. Spend in any currency at the mid-market rate, making it feel like you're using a local card wherever you go. Especially helpful when traveling to India — since all conversions are at mid-market rate.

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Please see the Terms and Conditions for your region and visit our pricing page for the most up-to-date pricing and fee information on Wise products.

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Conclusion

SBI offers a range of options for international transfers, but the hidden costs associated with exchange rate markups can significantly impact the amount received by your beneficiary. Wise provides a transparent and cost-effective alternative, offering the mid-market rate, low fees, and fast transfers. Whether you're sending money abroad, receiving funds from abroad, or an NRI based abroad, Wise can help you save money and simplify your international financial transactions.

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Sources used for this article

1. SBI Express Remit
2. SBI NRI Remittance
3. Procedure for collection of international funds
4. SBI Western Union money transfer
5. SBI ForEx service charges
6. SBI NRI services
7. SBI online remit
8. SBI NRI remittances
9. Western Union
10. RBI FAQ
11. SBI international remittance
12. SBI forex outward

All sources checked on 2nd January, 2020