Bank charge fixed amount as fee for remittance of money. Average rates are from
Rs 500 to Rs 1000 per transaction. Margin rates means spread over and above
current rates. Margin rates also differ from bank to bank.
Let us take an example to explain of difference of cost to clients. Supposed you
transferred USD 1000/- from your Indian bank account.
Case 1: Bank 'A' who is charging Fixed charges of Rs 1000 and Margin rate of 1.5 –
| Sr. No |
Particulars |
Charges |
| 1 |
Fixed Charges |
Rs. 1000 |
| 2 |
GST on Fixed charges |
Rs. 180 |
| 3 |
Exchange Rates (USDINR) |
Rs. 75 |
| 4 |
Margin Rate |
Rs. 1.50 |
| 5 |
Total Conversion Rate (3+4) |
Rs. 76.50 |
| 6 |
Amount to transfer |
USD 1000 |
| 7 |
Conversion of ₹ to $ (5*6) |
Rs. 76,500 |
| |
Total Amount deducted by bank for transferring USD 1000 (1+2+7) |
Rs. 77,680 |
Case 2: INXGA partner Bank 'B' who is charging Fixed charges of Rs 200 and Margin
rate of 0.5
| Sr. No |
Particulars |
Charges |
| 1 |
Fixed Charges |
Rs. 200 |
| 2 |
GST on Fixed charges |
Rs. 36 |
| 3 |
Exchange Rates (USDINR) |
Rs. 75 |
| 4 |
Margin Rate |
Rs. 0.05 |
| 5 |
Total Conversion Rate (3+4) |
Rs. 75.50 |
| 6 |
Amount to transfer |
USD 1000 |
| 7 |
Conversion of ₹ to $ (5*6) |
Rs. 76,500 |
| |
Total Amount deducted by India INX Global Access partnered bank for transferring USD 1000 (1+2+7) |
Rs. 75,736 |
In case of Bank 'B', who is offering lower charges, clients are paying Rs 75736/- for
USD 1000 and in case of Bank 'A' clients are paying 77,680/- for USD 1000.
For the Client transferring money the total transferring cost breakdown would be
| |
(USD 1000) |
(Fixed + Margin) |
(Total Cost) |
| Bank 'A' |
75,000 |
2,680 |
77,680/- |
| Bank 'B' |
75,000 |
736 |
75736/- |
The Charges by INXGA partnered Bank is approximately 75% less than other bank