Full value outward remittance: No bank charges on dollar exchange for trading abroad
Before buying US stock, the investor has to buy dollars from his rupee. This purchase is done according to the limit fixed in the Liberalized Remittance Scheme (LRS) made by the Reserve Bank. There will be a discount on the bank’s George in buying dollars from rupees for investment in foreign stocks.
HDFC bank (HDFC Bank) has introduced a new facility for its trade and retail customers. The name of this new service is ‘Full Value Outward Remittance’ (Full Value Outward Remittance) in which no charge will be deducted by the bank on the exchange of US Dollar, Euro and Pound Sterling. However, this facility is for when a customer sends money abroad. This new service of rebate on bank charges is for outward remittance. If money is sent to a person abroad in dollars, euros or pounds, then HDFC bank Will not deduct any charge on it. This is called foreign bank charges. This service will benefit those people who invest in American stocks or any foreign stock.
Actually, before buying American stock, the investor has to buy dollars from his rupee. This purchase is done according to the limit fixed in the Liberalized Remittance Scheme (LRS) made by the Reserve Bank. As per the existing LRS rules, a citizen of India, including a minor, can remit USD 2.5 lakh in a financial year. If you look at the current rate of dollars, then according to Rs 78, this amount is Rs 1.95 crore. That is, an amount equal to Rs 1.95 crore can be sent abroad.
Trade customer benefit
HDFC Bank has also started the facility of full value remittance for trade related transactions. The bank will not deduct any charge for sending pounds and euros abroad along with dollars. Bank’s savings account and current account holders will be able to avail this facility and get waiver of bank charges on trade and retail remittances. HDFC Bank says that retail as well as trade customers were in great need of this facility. Keeping this in mind, the bank has increased the facilities of customers in remittance. The bank says that this initiative will prove to be a ‘game changer’ for the trade.
what are the rules now
Talking about the bank’s remittance charge, it includes both outward (sending abroad) and inward. For sending out USD 500 or more, a commission of Rs 500 is levied. 1000 rupees commission is charged for sending more than 500 dollars. However, there is no charge for inward remittance. There is no charge for FCY cash selling.
Apart from this, GST is deducted on all foreign exchange transactions which is in addition to the charges mentioned above. On currency exchanges up to Rs 1 lakh, 0.18 per cent GST and a minimum of Rs 45 and a maximum of Rs 180 are charged GST. Rs 180 plus 0.09 per cent GST on currency exchange between Rs 1 lakh and Rs 10 lakh, subject to a minimum of Rs 180 and a maximum of Rs 990.