Whether you are sending money to a loved one in India, or receiving money internationally through State Bank of India (SBI), you should know all about how it is done, what are the charges, and the time taken for the transfer.

When sending money to India, it may also be worthwhile to consider Wise- a faster alternative which is upto 8x cheaper than banks

Compare exchange rates with Wise

SBI is India’s largest bank which operates foreign offices network and has correspondent banking arrangement with about 600 banks worldwide. You can send and receive money internationally through SBI accounts using any of the methods described below.

Funds can be received into Indian bank accounts through SBI Express Remit, demand drafts, wire transfers, Western Union transfers, and personal cheques.

SBI Express Remit is available across most countries and is an easy method of sending small-value funds to India, either to your own account or the account of a relative, a friend, or any individual in India. It is not necessary for either the sender or the receiver to maintain an SBI bank account for international transfers through Express Remit. Express Remit does not allow transfers to non-individual accounts¹.

To send the money, the sender has to register on the SBI Express Remit website. After registration, the sender can, at any time, login and transfer funds to India. The entire process is managed by SBI, which will first transfer money to its UK account, and then transfer the funds in Indian Rupees to the Indian bank account.

Though this is an efficient method and may seem cost-effective, it is best to compare the foreign exchange rates and charges levied by the bank. We will touch upon these charges in detail a little further in this guide and how you can benefit from comparing rates before your transfers.

DDs can be created in either the foreign currency or Indian rupees. You can obtain the DD either in your own name or in the name of any other beneficiary. The DD then has to be deposited in the Indian branch where you or the beneficiary holds an account. Currency conversion charges may be applied if the DD is issued in a foreign currency². SBI applies the prevailing exchange rates and also levy collection charges. These charges are further subject to service taxes as applicable.

DDs are a cost-effective method of transferring funds internationally through SBI, however, it takes a much longer 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.

You can send funds to your beneficiary's account in India from your overseas bank account through SWIFT network. You have to mention the following details to your bank for international transfer to Indian bank account²:

SBI money transfers may seem cheaper at first, but these prices don’t include SWIFT fees – which could cost you an additional $15-$45 on each transfer, explained further in this guide.

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:

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.

This is the traditional and perhaps an inefficient method of international remittance. You can draw a personal cheque on your foreign bank account in either Indian rupees or foreign currency and deposit it in the Indian branch where you hold an account through messenger or post or courier. This cheque is then sent for collection to the foreign bank and once cleared, it is deposited into your Indian bank account. The time taken depends on the country and the bank on which the cheque is drawn. The currency conversion rate prevailing on the date of conversion will be applicable².

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. You can check SBI money transfer rate and see how much money you could save with Wise.

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:

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

Open your free Wise account now

Sending money from India to other countries is regulated by the Reserve Bank of India (RBI) under the Liberalized Remittance Facility for Resident Indians, which permits forex outward remittance up to USD 250,000 per financial year subject to certain restrictions⁹.

To send money abroad with SBI, you have to be a customer of the bank for a minimum of one year and your account should be KYC compliant with PAN number updated in the account. You should also have transaction rights activated on your internet banking account. There are two methods for sending money abroad with SBI– FXOUT and REMXOUT¹¹.

FXOUT facility is available across all SBI branches in the country. Both residents and NRIs can use this facility. You can transfer up to USD 25,000 per transaction subject to a maximum of USD 250,000 in a financial year. If you are an NRI, a limit of INR 2,000,000 is applicable per transaction. To transfer money using FXOUT, you have to visit your SBI home branch with details of the beneficiary. Transfers can be made in USD, GBP, EUR, AUD, SGD, CAD and 91 miscellaneous currencies.

REMXOUT is available only to the retail internet banking users of RBI through SBI online. The limit for REMXOUT is USD 5000 or equivalent per transaction subject to a maximum of USD 250,000 per financial year. REMXOUT is available only in limited currencies – USD, GBP, and EUR.

To add an international beneficiary, follow the below process¹²

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

Goods and services tax (GST) as applicable will be levied over and above the charge specified.

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

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

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 it 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 displayed is called the mid-market rate, which is the real currency exchange rate at that moment. But this is not the rate that is given to you by SBI when you initiate the transfer. This high exchange rate can add significantly to the overall costs of your money transfer. You can compare how much you could save on money transfers using SBI exchange rate vs Wise.

Traditional bank transfers like SBI are based on old, rusty money transfer systems which are slow and expensive. Services like Wise use secure, smart technology to connect bank accounts all over the world, and transfer money faster and at a much lower cost. They offer mid-market rates (as seen on Google or Reuters) and a low, fixed transparent fee that is clearly mentioned.

There is no such thing as a free transaction. What you do not see is the unfriendly exchange rates. At any point, you can compare the exchange rates by Wise against other providers. You can be assured that what you see on your screen is what you get – no additional or hidden charges.

Sources used for this article

*All sources checked on 2nd January, 2020

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.