Global payments
Posted on Sep 16, 2025
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Key Takeaways:
You can receive international payments using SBI via Express Remit, demand drafts, or SWIFT wire transfers. Each method has trade-offs in terms of speed, cost, and convenience.
SBI doesn’t use live mid-market rate. It applies its TT Buying Rate for international monel transfer, which is lower, meaning you lose 0.5%–2% of your payment to conversion spreads.
Beyond money exchange rate, SBI deducts inward remittance fees, GST, and possible intermediary bank charges. Always expect the final credited amount to be less than what the client sent.
While SBI is reliable, private banks and fintech platforms often offer faster transfers and better rates, reducing the deductions on your earnings.
Consider Infinity for transparency. Infinity gives live FX rates, flat 0.5% fees, and one-day settlements, helping freelancers and exporters keep more of what they earn while staying compliant with RBI rules.
State Bank of India (SBI) is among the most trusted banks in India to receive payments from overseas. Its vast network and streamlined processes make it easy for Indian freelancers and businesses to receive international payments to land in Indian accounts.
But convenience comes with its own set of challenges. SBI charges high service fees, exchange and exchange rate markups that reduce your overall earnings after currency conversion. This guide explains how SBI’s money exchange rate system works, the charges you need to be aware of, and what steps freelancers and exporters can take to protect their payments.
Different Ways to Receive International Payments Through SBI
SBI offers three ways for freelancers and exporters receiving payments from international clients to get money in India. You can choose the method based on convenience and processing time.
1. SBI Express Remit
This is SBI’s own money transfer service, designed for faster inward remittances. It’s available in select countries (like the US, UK, and parts of the Middle East) and lets your client send money directly to your SBI account. The biggest advantage is speed — international funds often arrive the same or next day. But keep in mind that Express Remit is more useful for smaller payments, and you’ll still face SBI’s exchange rate when the money gets converted into INR.
2. Demand drafts (DDs)
A more old-school method, but still used in some cases. Here, your client arranges a demand draft abroad (either in INR or foreign currency) through SBI’s partner banks and sends it to you in India.
You deposit it in your SBI branch, and after collection and clearance, the money lands in your account. While this method avoids some online transfer issues, it’s slower and riskier (drafts can be delayed or lost in transit).
3. Telegraphic/Wire Transfers (SWIFT)
This is the most common route for freelancers and exporters today to accept foreign payments. Your client initiates a SWIFT transfer from their bank, and the money moves through intermediary/correspondent banks before reaching your SBI account. It’s reliable, widely accepted, and works for larger sums.
However, each intermediary bank may deduct charges along the way, and SBI applies its own fees and exchange rate markups before you see the final amount.
How SBI Money Exchange Rate Works
SBI doesn’t use the mid-market rate or live exchange rate you might see when you quickly check “USD to INR.” Instead, banks apply what’s called the TT buying rate (telegraphic transfer buying rate). This is the rate at which the bank agrees to buy foreign currency from you, and it’s usually slightly lower than the live market rate.
That small difference is called forex markup, and that’s how banks make additional revenue on forex.
For example, if the market rate for USD/INR is ₹83.10, SBI’s TT buying rate might be ₹82.60. There’s a gap of ₹0.50 per $. On a $1,000 payment, that’s a difference of ₹500 straight away. Multiply that by multiple invoices a month, and you can see how quickly the gap adds up.
SBI exchange rate is updated multiple times a day, and the applicable rate is usually the one at the time the funds are credited. Unfortunately, you don’t get to lock the rate in advance unless you’re using specialized forex services.
SBI Charges for Receiving International Payments
On top of exchange rate markups, SBI also deducts service charges for handling inbound foreign remittances. These charges vary depending on the method of transfer:
1. Wire Transfer (SWIFT / Telegraphic Transfer)
SBI Inward remittance fee: Usually a flat amount ₹600 per transaction.
Intermediary bank charges: If the payment passes through correspondent banks.before reaching SBI, they may deduct anywhere between $10–$30. This happens before SBI even receives the money, so your final amount is lower.
GST: Applicable on the inward remittance fee.
2. SBI Express Remit
Charges are generally lower and vary by corridor (US, UK, Middle East). The sender pays a transfer fee, and SBI still applies its conversion rate when crediting your account.
While faster, this service isn’t available in all countries, so availability depends on where your client is based.
3. Demand Drafts
Collection charges: A percentage of the draft amount, usually with a minimum fee. Your client will also have to pay ₹200 for purchasing a demand draft of up to $10000.
Courier/postal costs: If drafts are mailed, delays and risks of loss add indirect costs.
SBI Currency Conversion and Payment Charges
When you receive international payments through SBI, there are three layers of costs you need to account for: service charges, currency conversion spreads, and third-party deductions.
Currency conversion markup
The spread (difference between SBI’s rate and the market rate) is effectively a hidden fee.
For freelancers, this usually works out to a 0.5%–2% loss per transaction, depending on the currency and market volatility.
Example: If USD/INR mid-market is ₹83.10 but SBI applies ₹82.60, on $2,000 you lose ₹1,000 just in conversion.
Intermediary bank deductions
For SWIFT payments, funds often pass through one or more correspondent banks before hitting SBI.
Each intermediary may deduct $10–$30 (₹800–₹2,500) without prior notice.
These are unpredictable and make reconciling exact amounts tricky.
GST on fees
GST (18%) applies on SBI’s inward remittance service charge.
Example: If SBI charges ₹500 for handling, you actually pay ₹590 with GST.
Other Possible Deductions
Bank transfer charges abroad: Your client’s bank may also levy a sending fee ($15–$40 depending on the bank).
Foreign currency DD postage/courier costs: If drafts are mailed, add mailing + clearance time.
Value Date Differences: In some cases, when forex is credited a day later at a different rate, small losses can add up.
What this means in practice: On a $1,000 payment, you may lose:
₹500–₹750 in SBI fees
₹500–₹1,500 in exchange rate markup
$15–$30 (~₹1,200–₹2,500) in intermediary deductions
That’s a total cost of ₹2,200–₹4,500 per $1,000. This amounts to roughly 2–3% of your payment gone before it even hits your account.
SBI vs Other Indian Banks: How Do the Rates and Fees Compare?
SBI’s wide network and government backing make it reliable, but in terms of rates and charges, it’s not always the cheapest option for foreign inward remittances. Let’s compare SBI’s currency conversion charges to other banks for receiving international payments.
SBI vs ICICI/HDFC exchange rates
Feature / Bank | SBI | ICICI | HDFC |
Exchange Rate Markup (vs Mid-Market) | 0.5% – 1% | 3.5% | 2-3% |
Inward Remittance Fee | ₹500–₹750 per SWIFT transfer | ₹500–₹700 per SWIFT transfer | ₹500–₹750 per SWIFT transfer |
Processing Time | 2–5 business days | 1-2 business days | 2–4 business days |
Notes / Remarks | Widely available; intermediary bank charges may apply | Faster for premium accounts; lower intermediary fees in some corridors | Good online tracking; slightly better rates than SBI |
Alternatives to SBI for Currency Conversion
If you regularly receive payments from international clients, you’ve probably noticed how traditional banks eat into your hard-earned money. Between SBI’s exchange rate markups, service fees, and intermediary deductions, the amount that lands in your account is often much less than what your client sent.
That’s where Infinity steps in. Designed for freelancers, exporters, and businesses that work with global clients, Infinity is a payment platform that puts transparency and speed at the center of cross-border transfers.
Instead of hidden costs and complicated processes, it gives you a simple, predictable way to get paid.
Key benefits of using Infinity
Fair exchange rates: Infinity uses live mid-market rates without tacking on hidden markups. You get much closer to the real value of your payments.
Flat transaction fee: A straightforward 0.5% fee covers the transfer, so you’re not juggling multiple deductions.
Faster settlements: Payments usually reach your account within one business day, compared to the 2–5 days it often takes through banks.
Export compliance made simple: Infinity automatically issues a Foreign Inward Remittance Advice (FIRA), making it easier to meet RBI and tax reporting requirements.
Global flexibility: You can accept payments in multiple currencies (USD, GBP, EUR, etc.) through local account details, so clients pay you as if you had a bank account in their country.
Final Thoughts
Receiving international payments through SBI is a safe choice due to the bank’s global presence and well-defined processes. But once you factor in exchange rate markups, service charges, and intermediary deductions, SBI’s money exchange rate starts to look expensive.
These hidden costs can eat into margins and reduce your overall earnings. That’s why exploring smarter alternatives like Infinity makes sense. Infinity converts your money at live FX rates, and offers transparent fees and faster settlements.
Sign up with Infinity today to receive international payments at low costs!
FAQs
1. What are the ways to receive international payments through SBI?
You can use Express Remit, wire transfers (SWIFT), or international demand drafts, depending on your client’s location and preference.
2. What documents are needed to receive international payments?
Usually, you’ll need your SBI account details, SWIFT/BIC code, and sometimes compliance documents like invoices or contracts, especially for business-related transfers.
3. How long does it take to receive an international payment with SBI bank?
Typically 2–5 business days, depending on the transfer method and the countries involved.
