HDFC Bank, a leading private sector bank in India, provides a robust suite of services for international money transfers, catering to both non-resident Indians (NRIs) remitting funds home and residents sending money abroad. Navigating the complexity of fees, exchange rates, and procedures is essential to ensure your money moves efficiently.

This guide provides a detailed overview of HDFC Bank’s international transfer services, covering the processes and associated costs, including transfer fees and the often-hidden markups on exchange rates.

Sending Money Abroad from India with HDFC Bank

Indian residents can send money overseas under the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS), currently capped at USD 250,000 equivalent per financial year. HDFC Bank offers two main channels for outward remittance:

1. Online via NetBanking (RemitNow)

This is the most convenient method for most customers.

• Process:
  1. Log in to your HDFC NetBanking account or use the HDFC mobile application.
  2. Navigate to the ‘Money Transfer’ section and ‘Add Payee’ for an overseas beneficiary.
  3. Enter all required payee details, including the recipient’s name, bank account number, and the recipient bank’s SWIFT/BIC code.
  4. A cooling period of at least 30 minutes is required before you can select the newly added beneficiary to initiate the transfer.
• Limits: The online facility is typically subject to a maximum amount per transaction, often up to USD 50,000 equivalent per day, within the overall LRS annual limit.

2. Branch Visit

Transfers that exceed the online limit, require specific documentation, or are for non-resident accounts must be initiated by visiting an HDFC branch with necessary documents (ID, address proof, recipient details, and a declaration of the purpose of transfer).

Charges for HDFC International Transfers (Outward Remittance)

The total cost of sending money abroad involves three distinct components:

1. Transaction Fee (Commission)

HDFC Bank levies a flat commission based on the transferred amount:

Amount Equivalent (USD)	HDFC Commission (Flat Fee)
Up to $500	₹500 + Goods and Services Tax (GST)
Above $500	₹1,000 + Goods and Services Tax (GST)

2. Exchange Rate Markup

This is the most significant hidden cost. HDFC Bank, like all commercial banks, uses its own selling rate, known as the Telegraphic Transfer (TT) Selling Rate, which is higher than the mid-market exchange rate (the rate seen on financial news services). This markup or spread can range from 2% to 3.5% above the real market rate, reducing the amount of foreign currency the beneficiary receives.

3. Correspondent Bank Charges

The international SWIFT network often involves intermediary banks to route the funds. These correspondent banks may deduct their own fees from the principal amount before it reaches the beneficiary’s bank, unless the sender pays for the “Full Value” service option (which also incurs an extra fee).

4. Tax Collected at Source (TCS)

All outward remittances under LRS are subject to Tax Collected at Source (TCS) as per government regulations, which is collected by HDFC Bank at the time of debiting the account.

Receiving Money from Abroad in India with HDFC Bank

HDFC account holders can receive international transfers directly into their accounts via the SWIFT network.

1. Required Details for the Sender

To ensure a smooth and timely credit, the sender abroad needs to provide their bank with the following details:

• Beneficiary’s Full Name (matching the HDFC account).
• Beneficiary’s HDFC Bank Account Number.
• HDFC Bank’s SWIFT/BIC Code. The bank’s main code is typically HDFCINBBXXX, though certain branches may have specific codes. It is safest to confirm the appropriate code with your branch manager.
• The purpose of the remittance.

2. HDFC Bank Inward Remittance Charges

HDFC Bank levies No Charge for processing the inward remittance and crediting the funds to the beneficiary account.

Note on Hidden Costs: While there is no direct service fee from HDFC Bank, the conversion of the foreign currency to Indian Rupees (INR) is done at the bank’s TT Buying Rate. This rate is slightly lower than the mid-market rate, which results in a reduction in the final INR amount credited to the recipient. Additionally, correspondent banks involved in the transfer may deduct their fees from the sent amount before it reaches HDFC.

Processing Time: Funds are typically credited within 1 to 5 business days.

Full Value Remittance Facility

HDFC Bank offers a “Full Value Remittance” facility, ensuring that the beneficiary receives the entire amount sent without any deductions for foreign bank charges. This facility is available for USD, EUR, and GBP currencies. For USD, it can be availed through NetBanking (RemitNow), while for EUR and GBP, it is available only at branches. Please note that other transaction charges, commission, and GST will still be applicable.

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