hello and uh welcome to another new
video prasanjit paul here
if you do international fun transfer
from india to
any country like usa canada uae or
australia for
any purpose like investment in stocks
education
travel sending money to relatives etc
so this is a must-watch video for you
because
i will show you the cheapest
international fund transfer
option through which you can literally
save thousands
nowadays there are a lot of options so
watch this video
till the end so that you can save
thousands uh
from your next international fund
transfer onwards
so first let's have a look at various
associated cost while you do
international fund transfer the first
thing is
live market rate the rate that you see
in google or any financial website
let's say uh currently one usd is uh 75
indian rupees the second is currency
selling rate remember
the rate that you see like say for
example today one usd is a
75 or indian rupees but while you do the
money transfer you can't get the exact
75 rupees
most of the banks or financial
institution charge higher
so this is the currency selling rate the
rate at which
you will transfer the money this is
always
0.1 percent to 2 percent higher for
example
if car as of now one usd is 75
indian rupees then this currency selling
rate can be anywhere between 75.1
to 76 or up to 76.5
so you can see this is a huge there's a
big range and many various banks various
uh financial
institutions charge various amounts so
just
say saving this much cost only so if you
can opt for the lowest
provider who offer the best currency
selling rate you can save a
lot of money then the next charge is the
transaction charge
this is the charge that banks or
financial institution
charge you for the money transfer next
there are two cost one is uh gst and
then another is
uh tcs uh these two are basically fixed
cost so
gst that that's uh is rbi guided cost
so from whoever so medium you transfer
so gst will remain same
the amount of gst there is a three
different slab
so the first slab if the transfer amount
is up to
indian currency one lakh then that is
simply 0.18 percent of the
amount that is converted so for example
if you transfer one thousand us dollar
and let's say you are getting uh 75 or
eight
so 1000 us dollar means 75 000 indian
rupees
and 0.18 percent of 75 000 rupees comes
at
135 so that's the gst you need to
pay that is irrespective of the service
provider
similarly for the next slab for 1 lakh
to 10 lakh
indian rupees the charge is 180 rupees
plus 0.09 percent of the
amount convert then there for 10 lakh
more than 10 lakh rupees there is 990
plus 0.01818
percentage so this is a fixed so i won't
talk much about it or
whatever the medium will transact that
is a fixed cost
next is tcs this is tax collected at
source that's a
new thing and that is introduced from
1st october
2020 onwards now this is not actually a
cost this is
this amount will be deducted but you
will get the refund or the adjustment
while you do
annual income tax written filing so at
the end of the year or while you pay
advance tax so that time you can
adjust uh this amount so from
first october 2020 onwards there is a
five percent tcs
for any amount more than seven lakh
if you transfer more than seven lakh on
any financial
year so basically why government
introduced this uh tcs is
uh so earlier uh in last four five ten
years government noticed a large
uh amount i say for example uh five or
ten crores
indians do foreign travel but not all of
them
file income tax return so just to check
the tax version so they introduced
this tax now this is applicable only if
you do transfer of more than 7 lakhs on
a year
and the increased amount say for example
if you transfer 10 lakhs
indian rupees on any particular year so
the 5 percent tcs will be applicable on
10 minus 7 only on the 3 lakhs now
remember
there is no such limit if you go opt for
foreign travel
uh uh like even if you transfer one lakh
rupees for any foreign travel then also
you need to pay that tcs
there is some relaxation like there is
only 0.5 percent for
transferring amount that you obtain from
via any education
loan now remember whenever you do
international fund transfer you need to
mention
a purpose code so what is the purpose
without purpose you cannot transfer
ah amount to any bank account or to any
person so based on the purpose
these things will come so now
you can understand uh there are uh two
components one is variable component the
variable component that i
mentioned that is the currency selling
rate and the transaction cost and
another is the fixed component that is
gst and
tcs so i will uh more talk about this
the
variable ah component which ah service
provider can offer the cheapest currency
selling rate at the
cheapest transaction charge so as i have
mentioned if you do international fund
transfer you clearly
need to mention the purpose like if i do
fund transfer in india from indian bank
account to another indian bank account
there is no need to mention the specific
purpose code
but for international fund transfer you
must have to mention
the purpose so depending on the purpose
i will show you the cheapest option
the first set of purpose is gift travel
medical treatment or sending money to
any of your relatives or
transferring education fees or visa fees
or kind of
business travel fees so for all this
purpose the cheapest
option for international money transfer
bank to bank money transfer is
transferwise and you can also check this
rdcb limit so these are new edge
companies
and these are much much cheaper than the
traditional
players like western union moneygram and
then all the banks remember here
banks are the most expensive because
they not only charge the higher currency
selling fee
they also charge a lot of transaction
cost and correspond corresponding bank
charge and all
so these new edge companies like
transfer wise uh dc
remit so they offer dcb remit is
actually
uh backed by a dcb bank so that's
another
so dcb bank had created another platform
called disability for this
ah international fund transfer or
admittance purpose
so just because transfer wise provide
cheapest currency selling rate so you
you can save a lot of money through
transferwise
just for example so if currently uh on
the google or in financial website if
you find
one us dollar equal to 75 indian rupees
so transfer wise might offer 75.1 or
75.2
for the transfer whereas if you go to
bank they might code 76 rupees or 76.1
etc etc you should also consider
this uh companies like book my forex uh
currency fair and all
so remember i am not earning any money
from transferwise or from dcb remit or
anyone
so this is just based on my personal
experience
i i have also provided the link of all
this transfer wise dcb remit in the
description box
so you can also check out from there
banks are obviously
most expensive now if i talking about
the purpose
of for investment in equity shares very
unfortunately
this purpose for money transfer for
investment in equity shares
is only allowed through commercial banks
as per the rbi current rbi rules and you
know
banks are expensive but still on the
next few slides i will show you
out of all these banks there are a set
of psu banks private banks then foreign
banks
so which banks offer the cheapest option
so now again uh for banks there are
these all four set of charges as like
transferwise or disability one is the
currency selling charge
the second is transaction charge third
is gst and fourth is
tcs now these companies like transfer
wise receiver emit they may not charge
any transaction charge that ah there is
uh still this uh gst and
tcs as these are the fixed so out of
the banks so let's focus which bank
sell the currency at the cheapest rate
so this is the bank rate which often
called tt sale rate
or at which rate bank sell currency to
you and you transfer
the ah fund to ah your foreign relative
or for foreign travel or for equity
investment
purpose so uh i am dividing this uh
four uh category uh the first is this uh
surplus uh surprisingly this psu banks
like punjab national bank and bank of
baroda
they offer the cheapest bank rate the
cheapest
tt sale rate remember after a lot of
research i have
i have checked each and every individual
banks almost each and every individual
banks
and i have listed down in these four
categories then the
mid range the mid category range uh will
sbi state bank of india
and the expensive are this one like us
bank kotak bank axis
ici bank idfc first bank and all these
private banks
and among this private bank what i find
the hdfc bank offer a little
lower rate than others but this is uh
higher than the psu banks
for example if currently one usd equal
to
like 75 indian rupees you can see in
google or in financial
website so maybe this punjab national
bank and bank of boroda they might
charge
uh kind of a 75.8 or near about 76
uh whereas these private banks like yes
bank quota they might charge
seventy six point five to seventy uh six
uh so
yes bank quota so these are always like
kind of 70 to eighty pesos
more than bank of barada and punjab
national banks and uh
the highest uh amount the charge they
charge from these foreign banks like
city
uh standard charter hsbc etc now the
point that you need to remember is
for transferring fund or for remittance
for equity
investment you need to have a savings
account
in the bank that from where you you need
to transfer
money uh and another uh uh interesting
point to notice
many banks also offer preferential rate
for high net worth customers like say
for example
hdfc bank they have an imperial banking
program
so for imperial banking program they
offer 10 pesos better rate
to their these customers them they have
also preferred banking and all depending
on
how much money or how much investment
you hold with a particular
bank so depending on the relationship
value so this uh
they have different programs so under
this preferential uh program
you will obviously get much better date
but still uh all these banks are much
much more expensive than this
platform like dcb remy transfer wise or
book my forex and
all but even within this bank so this is
the first component
the tt sale rate now that's not all so
just because this uh tt sale rate is
cheapest for bank of bharada
you shouldn't uh move with the banker
further there is another component of
cost that is
transaction cost so talking about this
uh
transaction cost there are two
components one that is
bank transaction charge and then there
is also the corresponding bank charge
so corresponding bank charge is nothing
but the transfer
the charge that might uh take the
foreign bank
so in this uh charge unfortunately
bank of barada and punjab national bank
they often code the highest
although we have noticed that bank of
baroda charge lowest while it comes to
the
currency selling rate but they charge
highest in the
transaction charge and then svi comes in
the mid range
and the lowest is the private banks like
hdfc us bank icici
and depending on the relationship a few
banks may not charge
at all like for example i have yes first
customer maintaining his first
relationship with yes bank
and sometimes based on some offer they
don't charge at all
for the transaction charge so if i
summarize all these things so
for transfer remember all these are
transfer for
equity investment so earlier i have
already discussed about the transfer for
medical purpose travel sending gift
relatives etc so this is so if i
summarize
so what would be the cheapest option to
transfer or for remittance for
equity investment in shares so
here is the kind of uh summary the first
is if you maintain preferential
relationship with any bank
be it any uh private bank or any bank so
first approach to
them you can also bargain because as you
are an hni customer so you can also
burger many banks often reduce the
charge and then if you have a smaller
amount to transfer like say for uh
indian currency three lakhs or like less
than usd uh us dollar four thousand
then i think hdfc bank offer the most
cost effective option
and then the second preference should be
this private banks like yes bank access
bank icici
and etc and then if you have a higher
amount to transfer for a single go
like say for example more than five lakh
indian
rupees then these banks like uh pnb
bank of barada they will offer a cost
effective option
and for anything in the mid-range sbi
you can go for the state bank of india
remember so after a lot of research and
after approaching to almost
every banks i have noticed this charge
and then i had made the
conclusion so obviously before
transferring you must have to contact
with the bank
to know the exact charge and also the
process like for equity investment there
is an
form uh that you can collect from the
broker and then uh you just need to fill
up the form
and for this money transfer process and
the remaining part bank will
guide you the another point that i had i
hope i have already mentioned earlier
that you must have a savings account
like say for example
to transfer fund via sbi you must have
to a savings account holder of
sbi
and as you can see like just by changing
the banks
like if you are doing this transfer
using icsi bank so just by changing
the bank you can save a lot of this
transaction
cost so if i summarize this entire
discussion
like if the purpose of transfer is
education or for
gifting or sending money to relatives or
medical treatment or like visa fees
travel
so you should opt for this new edge
companies like transferwise dcbdamit
you should avoid banks because banks
charge a lot higher than these
companies the second category the
investment in equity shares you have no
option other than banks because of the
rbi
rules so uh in investment in equity
shares if you have the higher amount to
transfer
at a single go that a single transaction
then you can prefer for
punjab national bank bank of baroda and
if you have a lower amount to transfer
then you can go for hdfc bank or sbi
bank
and then after that this preference like
es bank access bank icsa bank
this preference will come so i hope this
uh detailed guide will help you a lot
and will save a lot of money
for any of your next international fund
transfer
if you have any queries so make sure to
post in the comment section
i will do my best to address the query
moreover if you have any relatives or
any friends
who transfer uh who do international
fund transfer frequently
feel free to share this video with your
friends because that will help them
a lot to save money for the next
international fund transfer
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so that's all from my and stay tuned uh
for another interesting video
and thanks thanks a lot for watching the
video