I'm a freelancer paid in US dollars by an overseas platform. How do I get a better conversion rate than my bank's default when the money comes to India?
1 Answers
The default rate on an inward wire usually has a markup of 50 paise to ₹1 or more per dollar. A few ways to do better:
- Negotiate a preferential rate with your bank, framed as "interbank rate (IBR) plus or minus X paise" rather than a discount on the published card rate. Banks keen on remittance volume will offer this, sometimes even IBR minus a few paise. If several freelancers on the same platform ask together, the bank may run it as a scheme for all of them.
- Compare collection-account services that give you a US account number for local (ACH) transfers. Their fees are often a percentage plus GST, while wires have a flat platform fee plus the bank's conversion. Which is cheaper depends on the amount.
- Use CCIL FX-Retail if your bank supports it. You sell the dollars at a market rate on the platform, and the bank converts at that rate minus its agreed markup.
- Remember GST on currency conversion. It's charged on a slab-based value (see the GST-on-forex Q&A) and differs by route.
To compare routes for a specific amount, use Worthify's USD→INR transfer calculator, and set a rate alert to convert on better days.
