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By Rajkamal Rao
Go back to Finance: Core Banking in India
To deposit larger amounts into India bank accounts - either to work around the global remit restriction of $10,000 a calendar month or to make a larger deposit into a Fixed Deposit account - international wire transfers remain a safe and efficient alternative. Indian banks offer foreign exchange rates almost close to bulk rates published in the Wall Street Journal; and don’t generally charge to receive international wire transfers - remembering that this is valuable foreign exchange coming in. One Indian bank charges a flat fee of only INR 125 regardless of the size of the transaction. The RBI imposes a small transaction tax but this too is a flat fee.
The western bank generally charges a fee to send an international wire transfer. In the US, Wells Fargo and Citibank customers typically pay a $30 fee but Bank of America customers pay a steeper $45. All these banks allow customers to send transfers online although additional security measures to prevent identity theft are generally in place.
Bank of America requires customers to sign up for its Safepass protection. This works like the Google 2-step verification feature where, in addition to your username and password, you'll enter a one-time passcode that Bank of America sends to your mobile phone at the time of the transaction. The passcode is valid only for a few minutes - sufficient time for you to complete your transfer - after which the passcode expires requiring you to request a new one time passcode online. Repeated requests for these passcodes are an indication that the passcodes are being guessed at. This will deactivate the Safepass system as a precaution forcing you to call customer service for a reset.
The 2-step verification method is considered much safer because hackers would not only have to steal your password and your username, they would also have to have access to your mobile phone.
The only issue is that your mobile phone must be able to receive US-originated text messages at the time of the transaction. If you have already relocated to India, you will be unable to receive the all-important one time passcode because US banks do not send SMS messages to India mobiles. Holding on to an active account with a US-based carrier - and signing up with the carrier’s expensive international data plans - just to receive an occasional SMS message doesn’t make much sense.
Thankfully, there is an inexpensive workaround but it involves the trust and willingness of a close friend or relative who still lives in the US. First, sign up for Google Voice. This is a free service that allows you to send and receive US SMS messages via email. Or download WhatsApp, a popular messaging service for your PC and smartphone, and have your trusted US friend do this too. Next, log in to your US bank account and update your profile with your US contact’s mobile number. When the bank sends this mobile number a verification code, have your US contact immediately text you that code. You should receive it via Google Voice or WhatsApp. Key this confirmation code into your bank account - and now, your mobile profile is complete. Follow this SMS swap trick whenever you need to follow the 2-step verification process.
Next, to complete the wire transfer you will need the Indian bank’s branch details, name of the destination account, the account number, the Indian bank’s SWIFT code (a unique code that is used to recognize financial and nonfinancial institutions globally) and the name of an intermediary bank. If you are wiring from Bank of America to a Mumbai branch of State Bank of India, the intermediary bank would be State Bank of India in New York.
Beware of western banks that will try to make you convert your wire transfer into Indian Rupees before sending so that they can add a foreign exchange commission fee to the already expensive wire transfer fee. To get the best exchange rate and also to qualify for NRI benefits at the Indian bank, your wire transfer must be sent in the foreign currency. The Indian bank must see the incoming wire in US dollars or GPB or Euros - before the funds are accorded the proper elevated status.
Wire transfers are safe and quick. In some cases, they can arrive into India the same day - or latest, the next business day.
Go back to Finance: Core Banking in India
To deposit larger amounts into India bank accounts - either to work around the global remit restriction of $10,000 a calendar month or to make a larger deposit into a Fixed Deposit account - international wire transfers remain a safe and efficient alternative. Indian banks offer foreign exchange rates almost close to bulk rates published in the Wall Street Journal; and don’t generally charge to receive international wire transfers - remembering that this is valuable foreign exchange coming in. One Indian bank charges a flat fee of only INR 125 regardless of the size of the transaction. The RBI imposes a small transaction tax but this too is a flat fee.
The western bank generally charges a fee to send an international wire transfer. In the US, Wells Fargo and Citibank customers typically pay a $30 fee but Bank of America customers pay a steeper $45. All these banks allow customers to send transfers online although additional security measures to prevent identity theft are generally in place.
Bank of America requires customers to sign up for its Safepass protection. This works like the Google 2-step verification feature where, in addition to your username and password, you'll enter a one-time passcode that Bank of America sends to your mobile phone at the time of the transaction. The passcode is valid only for a few minutes - sufficient time for you to complete your transfer - after which the passcode expires requiring you to request a new one time passcode online. Repeated requests for these passcodes are an indication that the passcodes are being guessed at. This will deactivate the Safepass system as a precaution forcing you to call customer service for a reset.
The 2-step verification method is considered much safer because hackers would not only have to steal your password and your username, they would also have to have access to your mobile phone.
The only issue is that your mobile phone must be able to receive US-originated text messages at the time of the transaction. If you have already relocated to India, you will be unable to receive the all-important one time passcode because US banks do not send SMS messages to India mobiles. Holding on to an active account with a US-based carrier - and signing up with the carrier’s expensive international data plans - just to receive an occasional SMS message doesn’t make much sense.
Thankfully, there is an inexpensive workaround but it involves the trust and willingness of a close friend or relative who still lives in the US. First, sign up for Google Voice. This is a free service that allows you to send and receive US SMS messages via email. Or download WhatsApp, a popular messaging service for your PC and smartphone, and have your trusted US friend do this too. Next, log in to your US bank account and update your profile with your US contact’s mobile number. When the bank sends this mobile number a verification code, have your US contact immediately text you that code. You should receive it via Google Voice or WhatsApp. Key this confirmation code into your bank account - and now, your mobile profile is complete. Follow this SMS swap trick whenever you need to follow the 2-step verification process.
Next, to complete the wire transfer you will need the Indian bank’s branch details, name of the destination account, the account number, the Indian bank’s SWIFT code (a unique code that is used to recognize financial and nonfinancial institutions globally) and the name of an intermediary bank. If you are wiring from Bank of America to a Mumbai branch of State Bank of India, the intermediary bank would be State Bank of India in New York.
Beware of western banks that will try to make you convert your wire transfer into Indian Rupees before sending so that they can add a foreign exchange commission fee to the already expensive wire transfer fee. To get the best exchange rate and also to qualify for NRI benefits at the Indian bank, your wire transfer must be sent in the foreign currency. The Indian bank must see the incoming wire in US dollars or GPB or Euros - before the funds are accorded the proper elevated status.
Wire transfers are safe and quick. In some cases, they can arrive into India the same day - or latest, the next business day.
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