IDBI Bank Outward Remittance Charges: A Complete Guide

The need for outward remittances has also increased manifold in today’s globalized world for which people, for education, business trips, and personal expenses, transfer money to other countries. In order to avoid any sudden expenses, one needs to understand the charges associated with outward remittances. IDBI Bank is without a doubt one of the topmost banks in India, catering to the customers with various services relating to outward remittances. This article shows details on IDBI Bank outward remittance charges to help you make an informed decision whenever there is a need for transferring funds internationally.

What is Outward Remittance?

Outward remittance is the outward transfer of funds from a bank account present in India to that of an overseas beneficiary.

The process mainly is used for the following:

The education: Paying either tuition fees or living expenses for those students studying abroad.
Business Transactions: These are the settlements of payment for imports or foreign services received.
Personal Transfers: Money transferred to relatives or friends living abroad.

IDBI Bank carries out these transactions through safe and secure channels or alternatives in the form of SWIFT transfers, foreign currency demand drafts, and its online platform called Fx-Remit.

Types of Outward Remittances – Services Offered by IDBI Bank

Transfers Using SWIFT

A global payment network that allows secured, standard transactions between banks anywhere in the world.

Demand Drafts in Foreign Currency

Foreign currency physical drafts that can be mailed to the recipient.

Fx-Remit Service

IDBI Bank Paperless and Hassle-free Foreign Remittance online platform.

Each method has its different characteristics and fee structures to help tackle a customer’s needs in a specific manner.

IDBI Bank Outward Remittance Charges

For Individual/Retail Customers

Outward Remittances Under Liberalised Remittance Scheme of RBI:
- Commission: ₹500 Comm. for each transaction.
- SWIFT Charges are ₹500 per transaction.
- Correspondent Bank Charges: Depending on intermediary banks, there may be further charges.

For NRI Customers

Repatriation from FCNR/NRE Accounts:
- Commission: Free for FCNR accounts.
- The charges for SWIFT: ₹500 per transaction.
- Additional Fees: All intermediary bank charges to be deducted from the sender’s account.

For Business Customers

Non-import transactions:
- The Commission is 0.25% of the Remittance Amount, with a minimum of ₹1,500 with no maximum cap.
- SWIFT Charges: ₹750 per transaction.
Advance Remittance for Imports:
- Commission: 0.25% of the remittance amount, subject to a minimum of ₹1,500.
- SWIFT Charges: ₹750 per transaction.

Additional Considerations

Goods and Services Tax (GST): All the charges are without GST, which is liable to be added at prevailing rates.
Correspondent Bank Charges: These charges are determined by the intermediary banks dealing in the transaction.

How to Send an Outward Remittance through IDBI Bank

Method of Online Application (Fx-Remit Service)

Registration: Log on to IDBI Bank’s internet banking and register for the Fx-Remit service.
Beneficiary Information To capture: Name of the account holder, Number of account, SWIFT code.
Start the transfer procedure: Input the quantity to be remitted and purpose, then submit the application online.
Status Tracking: This will enable you to track the status of your transfer online through the portal.

Offline Method

Branch Visit: To the nearest IDBI Bank branch.
Fill out the Forms: Fill out Form A2 and other forms related to the applicant.
Documents: Provide identification proof, address proof, and proof of remittance purpose.
Payment and Submission: After that, pay the required charges, the transaction will be forwarded by the bank itself.

Factors Affecting Total Outward Remittance Costs

Exchange Rate Mark-Up

IDBI Bank charges a mark-up over the base exchange rate. This will have an impact on the complete amount that is credited into the beneficiary’s account.

Correspondent Bank Charges

These charges depend on the banks involved in the chain of transaction and may vary significantly.

Nature of Remittance

The charges could vary in respect to personal remittances, business, or educational purposes.

Transaction Amount

Depending on the commission charged as a percentage of the sum, higher charges may be attracted for larger remittance amounts.

Tips to Ensure Smooth Remittance Process

Details of Beneficiary

The name, account number, and SWIFT code of the beneficiary should be verified with due care to avoid any delay or rejection.

Monitor Exchange Rates

Proceed with transfers when exchange rates are high.

Understand All the Costs

Understand all the costs involved and, consequently, correspondent banks’ fees to precisely determine the overall cost of a transaction.

Keep Documentation Ready

Always keep a copy of your receipt and details of the transactions that might be useful later for referencing or dispute purposes.

Benefits of Outward Remittance Services by IDBI Bank

Convenience: Fx-Remit does facilitate online transactions to be as quick and easy as possible.
Transparency: Detailed structures mean that the customer is aware of what the fee entails at all times.
Global Reach: IDBI Bank transacts money, with the help of SWIFT and other networks, to almost any country.
Customer Support: Dedicated support in case of any inquiries about the remittance charges or problems with the transaction.

Conclusion

IDBI Bank with competitive charges provides for safe and quick outward remittance while keeping the customer suitably informed about the fee structure, the rate of exchange, and overall cost so that a proper plan is made out for transactions. Be it education, business, or personal transaction; IDBI Bank with smooth transactions, online and offline, will facilitate the same. Avail the facility provided by IDBI Bank for outward remittance and handle your financial transaction across the globe without any hassle.

How Much Are IDBI Bank Outward Remittance Charges?