Businesses profit by moving goods and services globally, whether through importing at lower costs or exporting to high-demand markets. A crucial component of this global trade is the ability to send and receive money across borders smoothly.
However, international payments involve risks like fluctuating exchange rates, stricter regulatory guidelines, and higher risks of fraud compared to domestic transactions. That’s why small and medium-sized businesses (SMEs), exporters, importers, and consultants rely on trusted institutions.
State Bank of India (SBI), with its strong reputation and years of experience, is a dominant player in this space. Its reliability is backed by its scale: SBI reported a forex turnover of ₹65.55 lakh crore in its 2024 annual report, highlighting its commanding role in handling international transactions for Indian businesses.
This guide walks you through how businesses can send or receive money abroad using SBI, along with the charges they may incur.
Understanding Foreign Transfers
A foreign transfer (also called a remittance) is the process of moving money between India and another country. These are categorized into two types:
- Outward Remittance: Sending money from India to another country.
- Inward Remittance: Receiving money in India from abroad.
Both are governed by the Reserve Bank of India (RBI) regulations, and SBI facilitates them through its extensive international network.
Four Essential Business Transfer Methods via SBI
Different methods are available to cater to varying transaction amounts, destinations, and processing speed needs for businesses.
- SWIFT Wire Transfer: The global standard for secure interbank communication.
- SBI Foreign Currency Account (FCA): Allows businesses to hold major foreign currencies (USD, EUR, etc.) directly.
- SBI Express Remit: Designed for quick, low-documentation inbound payments of smaller amounts.
- Rupee Outward Remittance: Ideal for sending money in Indian Rupees (INR) to countries that accept it (like Nepal or Bhutan).
Sending Money Abroad through SBI (Outward Remittance)
Indian residents can send money overseas under the Liberalised Remittance Scheme (LRS), which currently allows transfers of up to USD 250,000 or its equivalent per financial year (April to March) for approved purposes such as education, travel, investment, or gifts.
Transfer Channels
SBI offers two convenient ways to initiate an outward transfer:
- Online via Fx-OUT, Internet Banking, or YONO: Suitable for smaller transactions (usually up to USD 40,000 equivalent a day). You’ll need to register and approve the beneficiary before sending.
- At an SBI Branch: Required for larger amounts or special transactions. The bank will ask for Form A2 and a formal declaration of the transfer’s purpose to ensure LRS compliance.
Information You’ll Need
To make a successful transfer, you must provide:
- Beneficiary’s full name and address.
- Account number or IBAN (International Bank Account Number, used mainly in Europe and the Middle East).
- Recipient bank’s SWIFT/BIC code.
- A valid purpose of remittance, such as “education fee” or “gift to relative.”
Timeframe: Transfers usually take 2 to 5 business days to reach the recipient’s bank.
Receiving Money from Abroad into an SBI Account (Inward Remittance)
If someone is sending you money from overseas, they can do so directly into your SBI account using the SWIFT network.
Details to Share with the Sender
You’ll need to share the following details with the sender:
- Your full name (as it appears in your bank records).
- Your 11-digit SBI account number.
- Branch name and IFSC code.
- SBI’s SWIFT code (explained in detail below).
SBI Express Remit
SBI also offers Express Remit, an online platform available through its international branches (like SBI UK or SBI California). It enables faster transfers, usually completed within 1 to 2 business days, often with better exchange rates for smaller amounts.
Understanding SBI’s SWIFT Codes
Every international wire transfer needs a SWIFT code (Society for Worldwide Interbank Financial Telecommunication) a unique identifier for a bank or branch.
| Purpose | SWIFT Code | Description |
| General Inward Remittance | SBININBBFXD | Default code for SBI’s central foreign exchange processing hub in Mumbai. This code is sufficient for most personal transfers. |
| International Banking Division (Mumbai) | SBININBB104 | Commonly used for trade-related or specific commercial transfers. |
SWIFT Code Guide: For most personal transactions, using the default central code SBININBBFXD is the correct procedure. It automatically routes the funds to your correct SBI account. Only use a branch-specific code if the sender’s bank explicitly requests it, which may require confirmation from your local SBI branch.
Understanding the True Cost of International Transfers
International transfers often include multiple cost components beyond the visible service fee. Here’s what to expect:
| Component | What It Means | Why It Matters |
| Service Fee | SBI’s charge for processing the transfer. | Varies by amount, mode (online or branch), and account type. |
| Exchange Rate Markup | The difference between the exchange rate SBI offers you and the real interbank (mid-market) rate. | This is a major cost component that significantly affects how much you or the recipient ultimately receive. |
| Intermediary Bank Charges | Fees deducted by one or more correspondent banks on the SWIFT network. | May reduce the final credited amount, especially if the sender does not choose to pay all fees upfront. |
| GST | Applicable tax levied on the bank’s service fees and the foreign exchange margin (markup). | Mandatory as per Indian regulations. |
Who Pays the Fees?
When sending money abroad, SBI allows you to choose who bears the transaction costs:
- BEN (Beneficiary Pays): Charges are deducted from the sent amount.
- SHA (Shared): You pay SBI’s fees; the recipient bears intermediary charges.
- OUR (Sender Pays All): You cover all fees upfront to ensure the full amount reaches the recipient (though minor, unavoidable deductions may still sometimes occur).
TCS on Foreign Remittances (LRS)
From April 1, 2025, banks collect Tax Collected at Source (TCS) on overseas remittances under the Liberalised Remittance Scheme (LRS).
TCS Rates:
- Education (self-funded): 5% on amounts above ₹10 lakh per year
- Education (loan-funded): 0%
- Medical treatment: 5% on amounts above ₹10 lakh per year
- Overseas travel: 5% on up to ₹10 lakh, 20% above ₹10 lakh
- Other purposes (gifts, investments, property, maintenance): 20% on amounts above ₹10 lakh
Key Points:
- Collection: TCS is collected by the bank at the time of sending money.
- PAN Required: Without PAN, TCS is charged at double the rate.
- Threshold: ₹10 lakh per financial year, not per transaction.
- Refund: Excess TCS can be claimed while filing your Income Tax Return.
Final Thoughts
International transfers with SBI are secure and globally recognized through the SWIFT network. Whether you’re sending money for education, family support, or business, double-checking the recipient’s details, using the correct SWIFT code (SBININBBFXD for most cases), and understanding the full fee structure will help you avoid surprises and delays. With the right information, SBI makes cross-border payments straightforward and reliable.
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