In the BHIM app I can only find outward remittance on FX-Retail. Is there a way to use FX-Retail to convert incoming USD to INR at a better rate?
1 Answers
Right now Bharat connect FX retail only supports buying USD (outward remittance/purchase forex currency/ load forex card). But you can use FX retail login to sell USD.
I have used it for my company receiving inward remittance from abroad clients.
Client initiates wire transfer and send me swift details. Next day, I receive email from bank that there is an inward remittance for my account waiting to be converted.
In FX retail, you can sell in Spot (settled on T+2 day) or day (settled same day). It’s like stock market, you put an order for sale. Once traded you will provide trade Id to bank and they will convert the incoming USD to INR (on the rate you sold minus the bank markup). You will also have to provide purpose code(why this USD is received).
I have used IDFC above and last leg (sharing trade id with bank) is manual (i have to send email with trade id for conversion). Because i have a private banking relationship and its a current account; IDFC has provided me 10p markup and zero processing fees.
As this process may vary bank to bank, i would suggest to confirm with your bank (HDFC in your case) before initiating the transfer from IBKR.
In my view the rate put by HDFC on fx retail is too high (along with processing fees), I wouldn’t not really use FX retail in this case and direct settle with bank as they may have a better rate directly.
AU bank may also offer zero markup on inward with zero processing fee; so that would be the best option.
