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I am an NRI living in the UK and currently have an NRO account with Indian Bank. I am trying to understand what foreign exchange services Indian Bank offers to NRI customers.
I mainly need to transfer money between the UK and India and occasionally send money from India to an overseas account. I have seen Indian Bank's website mention NRI Banking & Foreign Exchange, but I am not completely clear about what services are available specifically to individuals.
For example, does Indian Bank handle:
I am not running a business, so I am mainly interested in personal NRI foreign exchange and remittance services, rather than import/export finance.
I would also like to know whether these services can be requested online or whether I have to visit the branch handling my NRI account.
If anyone is currently using Indian Bank for foreign currency transfers from the UK, UAE, USA or another country, I'd appreciate hearing what the actual process was like and what documents the bank asked for.
I recently looked into the outward remittance side because I needed to send money abroad.
Indian Bank's published forex schedule lists outward remittances and gives separate charges depending on the method and amount. For example, the schedule lists flat charges plus SWIFT charges for certain outward remittances, while demand drafts have a percentage-based commission subject to minimum and maximum charges.
There are also separate provisions for remittances from certain NRE and FCNR(B) accounts. The current schedule states that outward remittances from FCNR(B) accounts and NRE accounts towards repatriation of deposits are listed with nil bank charges, although applicable regulatory and transaction conditions still need to be considered.
I wouldn't assume that "zero charges" means the entire transaction is free in every situation, though. Exchange rates, intermediary-bank charges, and the purpose/documentation of the remittance can affect the final amount received.
For a normal personal transfer, I'd get the bank to give you the exact amount debited, the exchange rate, and the expected amount received overseas before confirming the transaction.
Indian Bank does have a dedicated NRI / Foreign Exchange section, so foreign-exchange services are not limited to corporate customers.
For personal NRI banking, the published foreign-exchange schedule includes foreign-currency inward remittances and outward remittances. It also lists services involving foreign-currency instruments, including personal cheques, demand drafts and international money orders payable abroad.
The current published charges also mention foreign-currency inward remittances credited to NRI accounts, with the bank noting that charges for certain remittances credited to an NRI account holder may be waived.
So if your main requirement is receiving your overseas earnings into India or sending an eligible remittance overseas, those are definitely services worth asking the NRI/forex branch about.
I'd ask the branch for the current applicable exchange rate, transaction charges, SWIFT charges and documentation requirements before initiating a large transfer.
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One thing worth mentioning is that Indian Bank's foreign-exchange services aren't limited to simple currency transfers.
Its published forex material also refers to clean payments, foreign-currency instrument collection, FIRC certificates, and forward contracts.
A forward contract is more relevant if you have a predictable future foreign-currency payment or receipt and want to manage exchange-rate exposure. It may not be necessary for someone who simply sends money home occasionally.
For NRIs, I'd separate the services into two groups:
Personal remittance: receiving foreign currency in India, sending eligible money abroad, and handling foreign-currency instruments.
More specialised forex: forward contracts and other foreign-exchange facilities, which may depend on the purpose and eligibility.
The exact documentation will depend on the transaction. For example, a simple inward remittance and a larger outward remittance for a specific purpose won't necessarily have the same requirements.