Outward remittance is essential for Indian businesses involved in international trade. Whether paying for imports, investing abroad, or managing services, transferring money efficiently matters. Choosing the best bank for outward remittance in India is very important.

‍

The right bank helps you save time, avoid fees, and keep things smooth. But not every bank suits your needs.

‍

In this guide, we explore the top banks in India for outward remittance, highlighting their features to help you make the best choice for your business.

‍

What is an outward remittance?

‍

When a business sends money abroad, be it for any reason like paying for imports, purchasing foreign assets, investing in stocks, etc., it is termed as an outward remittance. These payment transfers fall under the purview of the Reserve Bank of India (RBI) and is regulated by the FEMA Act.

‍

However, businesses should be more concerned about the domestic banks they use to handle outward remittances. This is because different banks have different charges, payment transfer times, and other features. Choosing the best bank for outward remittances will have a positive impact on your bottom line.

‍

Top Banks for Outward Remittance in India

‍

IDFC First Bank

With a focus on digital banking, IDFC First Bank offers swift and efficient remittance solutions for modern businesses.

‍

Pros:

‍

• Simple and fast online remittance services
• Competitive exchange rates for businesses
• No hidden charges for wire transfers

‍

YES Bank

YES Bank stands out for its flexible remittance solutions, making it a solid option for businesses needing quick and reliable transfers.

‍

Pros:

• Multiple outward remittance products, including SWIFT transfers
• Dedicated remittance support for SMEs
• Quick online processing via YES BANK NetBanking

‍

SBM Bank India

Part of the State Bank of Mauritius group, SBM Bank focuses on fast and secure cross-border payments, especially for businesses engaged in international trade.

‍

Pros:

‍

• Fast processing times for international payments
• Strong global network of correspondent banks
• Lower fees for high-value transfers

‍

HDFC Bank

HDFC Bank is one of the largest private-sector banks in India, known for its excellent customer service and online platforms.

‍

Pros:

‍

• Competitive exchange rates
• Low transfer fees, especially for corporate accounts
• Dedicated forex services for businesses

‍

ICICI Bank

ICICI Bank delivers a wide array of international transfer services, from SWIFT transfers to demand drafts, making it a popular choice for businesses of all sizes.

‍

Pros:

• Wide network of correspondent banks for faster transfers
• Specialized remittance services for corporates and SMEs
• Easy online process through ICICI Bank's portal

‍

State Bank of India (SBI)

As India’s largest bank, SBI is well-known for handling large-scale international transfers, backed by its global branch network.

‍

Pros:

• Extensive network of branches, including international locations
• Relatively low service fees for outward remittance
• Foreign currency accounts available for businesses

‍

Axis Bank

Axis Bank is recognized for its reliable international remittance services, offering custom solutions for both small businesses and large corporations.

‍

Pros:

• Easy and fast international transfers through Axis Forex Online
• Customizable remittance solutions for businesses
• Competitive fees and forex rates

Kotak Mahindra Bank

Kotak Mahindra Bank takes a customer-centric approach, providing a range of outward remittance services with a focus on convenience and speed.

‍

Pros:

• Strong online platform for quick remittances
• Dedicated relationship managers for business accounts
• Flexible remittance options for high-value transfers

‍

Factors to Consider When Choosing a Bank for Outward Remittance

• Exchange Rates: Small changes in rates can impact the amount received. Compare rates to find the best deal and maximize value.

‍

• Transfer Fees: Banks charge fees for transfers. Higher fees can increase costs, so look for banks with lower fees, especially for larger sums.

‍

• Processing Time: Some banks process transfers quickly, within hours. Others take days. Choose a bank that meets your timing needs for urgent payments.

‍

• Customer Support: Good support helps resolve issues quickly. Reliable customer service can prevent and fix problems effectively.

‍

• Foreign Correspondent Network: A bank’s global network affects transfer speed and security. A strong network ensures faster, safer transactions.

‍

• Help with Regulations/Documentation: One of the things that can increase your payment processing time is not having all your documents in place. Choose a bank that will help you with managing foreign regulations and documentation.

‍

What are the alternatives to banks for outward remittance?

‍

There are many alternatives to banks for outward remittances from India. For personal or smaller amounts, online transfer platforms like Wise or Paypal can work. Money transfer operators like Moneygram or Western Union are also good options.

‍

For business outward remittance, Karbon is the best option. Providing the lowest transaction fees in the market, along with the best exchange rates, Karbon can reduce your outward remittance charges to less than 1% of the total transaction amount. It also helps with documentation and managing both foreign and Indian regulations.

‍

Get started with Karbon and make your first outward remittance within 2 hours!

‍