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A wire transfer also known as SWIFT transfer, is an electronic method of sending money from one bank account to another across international borders.
The SWIFT network (Society for Worldwide Interbank Financial Telecommunication) is a secure global messaging system that banks use to send payment instructions. It doesn’t move money itself. It tells banks where and how to send it.
Who uses wire transfers in India?
• Businesses paying or receiving large international invoices
• Students paying overseas tuition
• Importers/exporters under formal contracts
Option 1: In-Person Bank Visit
Option 2: Online Banking Interface
Option 3: Phone Banking
Before any money leaves your account and travels overseas, Indian banks require a strict set of documents. This is to comply with RBI’s foreign exchange rules and prevent illegal transactions.
Here’s what you’ll need:
PAN Card
Almost every outbound wire transfer requires a valid Permanent Account Number (PAN). No PAN, no transfer.
Form A2
A declaration form where you state why you’re sending the money. Banks won’t proceed without this.
Invoice or Purpose Proof
If you're paying for services, tuition, importing goods, or investing abroad, the bank will ask for supporting paperwork. Usually an invoice, admission letter, or contract.
Form 15CA/15CB (for larger transfers)
If you're transferring ₹5 lakh or more, you will need Form 15CB, which is certified by a Chartered Accountant to confirm the transaction complies with income tax rules.
After that, Form 15CA (a self-declaration) is uploaded online and linked to the transfer.
Sending money abroad isn't limitless. The RBI has set clear ceilings and conditions through its Liberalised Remittance Scheme (LRS).
Here’s how the limits break down:
• USD 250,000 cap per financial year
That’s the maximum an individual resident can send outside India in a year for permitted purposes —education, travel, investments, gifts, etc.
• No transfer splitting allowed
Trying to send ₹10 lakh by splitting it into four ₹2.5 lakh chunks through different banks won’t work. Banks are required to flag such activity.
• Some banks add a margin buffer
Banks insist you maintain a small additional balance or hold the funds for 1–2 business days to account for exchange fluctuations.
Outward Remittance Fee (₹500–₹2,500):
This is charged by Indian banks for initiating an international transfer. The amount varies depending on the bank and the transfer size.
GST (18%) on the Bank’s Fee:
This is applied as per Indian tax law on the bank’s service charges for foreign exchange transactions.
Indian banks do not use the mid-market rate (like what Google shows).
They add a markup of 1.5%–4% over the real rate, which means the sender pays more in INR for the same amount in foreign currency.
This markup is not itemized. It’s built into the conversion rate itself.
Even if you’re sending money from India, it doesn’t mean the destination country’s banking system will receive it without question.
Outbound transfers can get stuck or rejected due to red tape at the recipient’s end.
Here’s why:
The recipient’s bank holds the funds
Especially in the US and Europe, if the recipient’s name, account, or purpose isn’t clear, banks may freeze or delay the transfer until further verification.
Intermediary banks add to delays
Your money generally passes through multiple banks before reaching the final account. At each stage, it risks delays, additional fees, or misrouting.
Sanctioned or high-risk countries get flagged
Sending funds to politically sensitive nations can trigger regulatory alerts, even if your transaction is legitimate.
Pro tip: Always double-check the recipient’s bank details, SWIFT/BIC code, and whether the destination bank has known restrictions.
Challenges In Sending Money Online:
Here’s how the process works, what details you need to share, and the common reasons for delays or deductions.
To get paid, you must provide your international client with the correct account information. This usually includes:
• Your name or business name exactly as it appears on your bank account
• Your account number
• The SWIFT or BIC code of your bank
• Your bank’s name and branch address
• The currency in which you prefer to receive the funds
Some Indian banks can accept foreign currencies directly. Others route the funds through intermediary banks, which adds extra fees or delays.
Once your client sends the money, the payment travels through the SWIFT network, which is the global system banks use to communicate and transfer funds securely. The message is received by your bank or its correspondent bank, which then begins processing the transaction.
At this stage, the bank verifies:
• That the name and account number match
• The stated purpose of the transaction
• Whether the payment triggers any compliance alerts or flags
If there are no issues, your bank will convert the foreign currency into Indian rupees using its internal exchange rate and credit the funds to your account.
In some cases, the bank temporarily holds the funds for review. This typically happens when the bank requires more clarity on the transaction or needs supporting documentation. You will be asked to provide some if not all the below documents:
• A copy of your PAN card
• Your GST registration or Import-Export Code (IEC)
• A relevant invoice or service contract
These checks are mandatory under Indian foreign exchange regulations and help banks stay compliant with RBI and FEMA rules.
In a wire transfer, the receiver often faces the most challenges.
You're left wondering when the money will arrive and often have to follow up with the bank multiple times. Here are a few prominent issues:
To avoid these issues, ensure your bank account is KYC-compliant, provide complete documentation, and double-check receiving details before sharing them with your client.
Traditional bank transfers is a common way to transfer money internationally, but they’re far from perfect.
Delays, high fees, currency conversion losses, and unpredictable compliance checks often leave Indian businesses frustrated.
If you are sending or receiving money frequently, it’s better to use a 3rd party platform.
They transfer in much less time. You can use platforms like PayPal, Payoneer etc, but do note they charge higher fees around 3–7%.
If you are looking for a faster, affordable option built for Indian businesses, Karbon charges a flat fee, offers better FX rates, and settles directly to your INR account.
Bank transfer has been the default way of transferring money for decades and it hasn’t lost its value.
Businesses should stick to bank transfer if they:
However, it’s not always the most practical option anymore.
If you’re dealing with global clients frequently, using a third-party platform like Karbon, Wise, or Payoneer makes things easier.
You get faster access to funds, better FX rates, and a professional way to receive payments.
Retail customers can send up to USD 40,000 (or equivalent) per transaction per day through the YONO SBI app in the following 8 currencies:
USD, EUR, GBP, CAD, AUD, NZD, SGD, and AED.
For the complete procedure check out our step-by-step guide.
Charges include:
• Outward remittance fee: ₹500–₹2,500 (varies by bank)
• GST on bank fee: 18%
• Exchange rate markup: 1.5%–4%
• Intermediary/receiving bank charges (usually $10–$30 deducted)
You’ll need:
• Beneficiary name and address
• Bank name and SWIFT/BIC code
• Account number or IBAN
• Purpose of remittance
• PAN card
• Form A2 and supporting documents (invoice, admission letter, etc.)
Log in to HDFC NetBanking → Click on “Funds Transfer” → “Request for Outward Remittance.”
Fill in beneficiary and transfer details, upload required documents and submit.
A relationship manager will contact you for verification.
