Inward Remittance from Foreign Employer

[lucianne]

Hi All,

I am posting here first time.

I work independently for a foreign employer, he sends me the salary through wire transfer Bi-Monthly in my Citibank Savings account (my previous firm opened it and I continue using this). I noticed that Citibank is charging very high conversion rate. He wired the money to me on 5th or 6th April, I received it in my bank account on 7th. However, they charged INR 3,900 as conversion rate and transaction charge. This would cost me around 1 lakh p.a. I am planning to open a current account (as the income is more than 20 L p.a.). Can you please suggest me Banks with lower conversion rate, transaction fee and with Good internet banking. My father is saying to open the account in Govt Bank like Canara but I know their Customer Service so I am in a dilemma. I cannot use Transferwise etc because my employer would only send me money directly to my bank account.

Please help.... Sorry if this is not the right place but I feel this community have great advisors that is why posted it.

Thanks!

 

[ahnubiss]

@lucianne Speaking from experience with a monthly credit of USD coming into my NRE account. I've shopped around and finally settled on Canara Bank. Following is from mine and my colleagues collective experience.

Canara Bank provides the best exchange rates closely followed by Kotak. SBI exchange rates are good but they deduct some additional usd as conversion charges which drops them far below.

If you want service with decent rates go for Kotak. If service is not that important an issue, go for Canara Bank. (I usually transfer my money so service is not really the deal breaker for me).

HDFC, HSBC, ICICI, Citi, Axis and PNB have all been tried, tested and then all been rejected. They'll entice you with good rates and service but drop the ball soon. Once, it happened with a colleague of mine, account in ICICI, where his salary was credited but not deposited in his account even after 7days.

Note that all the above are experiences of NRE accounts of incoming amounts well above an average of $5000 monthly.

 

[zantetsuken]

@ahnubiss Hi, I messaged regarding a small query on Liberalized Remittance Scheme. Could you please help.

 

[deesweetz]

@ahnubiss I have been using SBI for a few months and it's not bad. And they are only charging GST on conversion, which I think is compulsory charge for every bank.

One issue I am facing is that SBI is not sending me any receipts for the transfer. Each time I have to call someone in the closest commercial branch of SBI and then he will be like your statement is proof enough for tax purpose.

Does canara bank automatically issue the payment advice?

Edit: I have been thinking to use DBS instead of SBI for further inwared remittance as I already have account in that and their TT rates are only slightly lower than SBI. Or maybe I should open the canara account.

 

[popc]

@ahnubiss Hi

For wise I can only transfer in INR to India. Is sending INR to NRE account permissible. My RM told me that the remittance should be in foreign currency only.

Which bank did u use ?

 

[ahnubiss]

@popc AFAIK, you can transfer any currency into your NRE account. If you're sending INR, the sending account should also be a NRE. That's what I know.
Your CA should be able to guide you further.

 

[premier3092]

@lucianne Review IDFC for your needs - I'm recommending this in absolute sense, not after comparison with other banks.

https://www.idfcfirstbank.com/banking-products/inward-remittance.html

 

[shefmasurj]

@premier3092 i used IDFC for a small amount for inward remittance from CITI usa to IDFC India, the funds first come to IDFC in USD, and they converted here in India taking the FX rate on date of credit to my a/c. Note - thy did charge GST on conversion fees.

depend on your amount, please check with IDFC Bank first on rate etc.

 

[neal000]

@premier3092 What are the outward remittance charges at IDFC?

 

[carlpetrus]

@premier3092 Horrible conversion rate. They convert @ 71.96 when the actual rate is 74.5 something as of 5th Jan 2022

 

[resjudicata]

@lucianne SBI has the best conversion rates with no fuss.

HDFC and ICICI can get pretty competitive too but you'll have to talk to them.

I use SBI account for receiving my forex remittances because when adjusted for effort I get the best rates

 

[flower82]

@resjudicata +1 to PSU bank for lower fx transaction rates

 

[flower82]

Also better conversion rates too compared to mnc banks. You can compare rates on each of the banks website typically under forex rate card.

 

[lucianne]

@resjudicata Yes but what about their Customer service experience and net banking facility? Any idea?

 

[resjudicata]

@lucianne Net banking is good enough.

For me the customer service experience has been excellent too because I have a pretty high net relationship value.

 

[healmyheart]

@resjudicata How about FIRC? Do you easily get it from SBI?

 

[iwillwalkinfaith]

@resjudicata Do you get FIRC from them automatically (like how HDFC does) upon remittance

 

[resjudicata]

@iwillwalkinfaith I don't get it automatically. I have never asked for it either.
cc: /@healmyheart

 

[healmyheart]

@resjudicata I thought having FIRC was mandatory. Is it not?

 

[iwillwalkinfaith]

@resjudicata Are you aware that you need to obtain it for all inward remittances - which is why I am sticking with HDFC in the first place. Bad forex rates, delays on certain occasions for stupid reasons - but I get the FIRC automatically in my inbox like clockwork so can't complain. From what I hear, the process, otherwise is painful with other banks. Got really excited there when you said SBI but it sounds like you are not obtaining the FIRC from them...