Bank of Baroda International Money Transfers: Everything You Should Know in 2023

The second-largest state-owned bank in India, Bank of Baroda (BoB), is so renowned for its extensive range of banking services and a robust presence in the international market that it is called "India's international bank."

When it comes to sending money abroad, one of the most common challenges faced by individuals and businesses is the burden of high fees. BoB recognizes this problem and has developed a solution to address it effectively. With BoB International Money Transfer, you can enjoy competitive rates and significantly reduced fees, making cross-border transactions more affordable and convenient.

While Bank of Baroda is committed to providing customers with cost-effective international money transfer services, it is essential to consider associated fees and evaluate alternative options. The fees charged by BoB for international money transfers are generally reasonable and competitive within the industry. However, it is always recommended to compare fees, exchange rates, and transfer options provided by different money transfer providers to find the most cost-effective solution for your specific needs.

Fortunately, there is a solution that can help you find the best deals and avoid the high fees associated with BoB international money transfers. Monito's comparison tool allows you to compare the fees and exchange rates offered by different money transfer providers, including BoB, to find the best deal for your needs. Save money and time now by finding the cheapest and fastest alternative with Monito's live comparison engine below:

BoB International Money Transfer Charges

For Resident Indians, international transfers are subject to the Liberalised Remittance Scheme (LRS) which imposes a maximum limit of $250,000 for transferring funds abroad. However, for NRIs with NRE or NRO accounts, there are no limits and a limit of $1 million respectively that need to be followed.

Bank of Baroda's international money transfer charges depends on various factors, including the transfer amount, destination country, and transfer method. Broadly, here are the costs involved:

• You will incur a nominal fee equal to 0.1% of the transfer amount, with a minimum charge of Rs 500 and a maximum of Rs 5,000 per transaction.

Additionally, BoB charges a flat fee of Rs 500 per transaction, which includes the applicable Goods and Services Tax (GST), for remitted amounts less than Rs 25,000. Amounts above Rs 25,000 carry a Rs 750 flat fee. It's worth noting that these fees may vary based on the specific transfer requirements and the country of destination.

Bank of Baroda facilitates international transfers exclusively in British pound sterling (GBP), US dollars ($), and Indian rupees (Rs). Alongside the limited currency options, the bank implements profit margins that are typically 2-4% higher than the true mid-market rate. While the bank regularly updates its website with real-time exchange rates, you can reach out to their local Bank of Baroda branch for precise quotes, as the displayed rates are subject to fluctuations based on market conditions.

How to Transfer Money From BoB to an International Bank

BoB provides users with competitive exchange rates. You can also track the status of their transfer through BoB’s online portal, ensuring a smooth transfer process. Here is how the process goes:

First, visit the branch physically or virtually and provide the necessary documents and information required for the outward remittance, including:

1. Valid identification documents (such as passport, Aadhaar card, or PAN card).
2. Bank account details of the beneficiary, including the name, address, and account number.
3. SWIFT/BIC code of the beneficiary's bank (obtain this information from the recipient).
4. Purpose of the remittance (e.g., education, medical expenses, etc.).
5. Amount and currency of the remittance.

You will be provided with an outward remittance form called the A2 form which needs to be filled with the above information and then submitted. Pay the applicable charges for the outward remittance, which will be deducted from your Bank of Baroda account. The fees may include a small percentage of the transfer amount, with a minimum and maximum limit, as well as any currency conversion charges.

BoB International Money Transfer Time

BoB international fund transfers generally take 2 to 3 working days to reflect in the beneficiary’s bank account.

Alternatives to BoB International Money Transfer

In India, the Union Budget 2023-24 announced an increase in Tax Collected at Source (TCS) rates from 5% to 20% on overseas tour packages and funds remitted under the Liberalized Remittance Scheme (LRS) for purposes other than education and medical. These revised tax rates are set to be implemented starting from July 1, 2023, adding to the costs of sending money abroad.

On top of that, “extensive and expensive” can be an apt phrase to describe the entire process of BoB international money transfer. Using BoB’s services to send money abroad from India might be secure, but apart from costing a little on the higher side, it can be a time-taking process. Starting with the A2 form, potential physical visit to a branch, and paying a minimum fee of Rs 500 along with SWIFT charges, the entire process can be convoluted and cumbersome. Furthermore, Bank of Baroda applies an undisclosed percentage on each foreign currency conversion, resulting in a loss of funds during the process.

This means you have all the more reasons to compare wisely and choose the best possible platform to transfer money from India to other countries. To that end, Monito’s comparison engine shows us four remittance service providers that can be a good alternative to BoB international money transfer.

These alternative providers like Remitout, Wise, Instarem, and Halo Financial are much more straightforward than BoB and offer more flexible transfer options and support multiple payment methods. These specialized companies make extra efforts to closely match the real market value of the currency pairing, ensuring that you receive the most favorable exchange rates possible. Let us take a look at each separately:

Remitout

Remitout is an alternative money transfer service most suitable for students. While specific fees and charges may vary, Remitout typically offers competitive exchange rates with low or zero transfer fees for student transfers. They understand the financial constraints students may face and aim to provide affordable and convenient solutions for international money transfers. However, you can only send up to $2,50,000 in a single financial year.

• Costs: Nostro (an account used by banks to hold foreign currencies) charges between $15 – $30 per transaction; GST of 18%; Merchant service charge of about 2% of the transaction amount
• Payment methods: Bank transfers, debit/credit cards, and mobile wallets such as Paytm or Google Pay.
• Time: The time taken for the money to reflect in the recipient’s account is 2 business days (the same day if the transaction is done before 1pm).

Wise

Wise, formerly known as TransferWise, is a popular choice for international money transfers. They offer transparent and competitive exchange rates, often closer to the mid-market rate, which is the real exchange rate without any markup.

• Costs: A fixed fee of Rs 127.98; Variable fee of 2.03% is imposed per transfer.
• Payment methods: Bank transfer and credit/debit card payments
• Time: 2 business days

Instarem

Instarem is another alternative that offers international money transfer services. They advertise low transfer fees and competitive exchange rates. While the exact fees can vary based on factors such as the transfer amount and destination country, Instarem aims to provide cost-effective solutions for cross-border transfers. They have a straightforward fee structure, allowing customers to easily calculate the total cost of their transactions.

• Costs: Transaction fees between 0.25% and 1%; Around 4% including hidden charges such as margins on foreign exchange rates, bank charges, and service charges; Fixed fee of Rs 1,200
• Payment methods: debit/credit card, bank transfers and wire transfers
• Time: 1-2 working days (2-5 business days for the first transfer)

Halo Financial

Halo Financial specializes in handling large transfers, such as property purchases or investments. The minimum transaction amount is £2,000, and there are no fees for transactions above £5,000. They provide personalized services tailored to individual needs and offer competitive exchange rates. While their fees may be higher compared to other alternatives, they often provide dedicated account managers who can guide customers through the transfer process and help them navigate potential currency risks. By providing expert advice and personalized support, Halo Financial aims to offer value for large international transfers. Exchange rate margins between 0.1% and 1%. You can learn more about the costs, payment methods and transfer times here.

Is BoB Worth It for International Transfers?

Bank of Baroda (BoB) offers international money transfer services for customers looking to send funds abroad. However, when evaluating whether BoB's international money transfer is worth it for your specific needs, it's important to consider various factors such as fees, exchange rates, convenience, and alternative options. This is where Monito can be of assistance.

Monito is a comparison platform that allows you to compare the fees, exchange rates, and services offered by different money transfer providers, including Bank of Baroda. By using Monito's live comparison engine, you can easily assess the cost-effectiveness of BoB's international money transfer services in relation to other providers.

One of the key advantages of using Monito is its ability to provide transparency and help you find the best deals. Monito's comparison tool allows you to compare the fees and exchange rates of various providers, including BoB, side by side. This enables you to make an informed decision based on the most cost-effective options available for your international transfers.

Additionally, Monito offers user reviews and ratings for different providers, giving you insights into the quality of their services. This can help you assess the reliability and customer satisfaction levels associated with BoB's international money transfer service.