Transferring money internationally can seem like a daunting task, especially when it involves banks in different countries with varying regulations and procedures. But don't worry, this comprehensive guide will walk you through every step of sending money from your State Bank of India (SBI) account to a Bank of America account in the USA. We'll cover everything from gathering necessary information to understanding fees and tracking your transfer.
Ready to get started? Let's make this international transfer process as smooth as possible for you!
How to Send Money from SBI to Bank of America: A Step-by-Step Guide
Sending money from SBI to Bank of America primarily involves an international wire transfer, leveraging the SWIFT network. Here’s how you can do it:
 |
| How To Send Money From Sbi To Bank Of America |
Step 1: Gather All Necessary Information for the Beneficiary (Recipient)
This is arguably the most crucial step, as even a small error can lead to significant delays or even the return of your funds. Make sure you have the following accurate details for the Bank of America account holder:
1.1. Beneficiary's Full Name and Address
- Ensure the name matches exactly as it appears on their Bank of America account. This includes any middle names or initials.
- Full street address, city, state, and ZIP code are essential.
1.2. Beneficiary's Bank of America Account Number
- This is the specific account number where the funds will be deposited.
- Double-check this number to avoid misdirection of funds.
1.3. Bank of America's SWIFT Code (BIC)
A SWIFT (Society for Worldwide Interbank Financial Telecommunication) code, also known as a BIC (Bank Identifier Code), is a unique identifier for banks and financial institutions worldwide. It's essential for international wire transfers.
- For wires sent in U.S. Dollars (USD) or unknown currency:
- SWIFT Code:
BOFAUS3N - Bank of America Address: Bank of America, N.A., 222 Broadway, New York, NY 10038
- SWIFT Code:
- For wires sent in Foreign Currency:
- SWIFT Code:
BOFAUS6S - Bank of America Address: Bank of America, N.A., 555 California St., San Francisco, CA 94104
- SWIFT Code:
Always confirm the correct SWIFT code with the recipient or directly with Bank of America to ensure it's up-to-date and appropriate for the currency of transfer.
QuickTip: Scan quickly, then go deeper where needed.
1.4. Purpose of Remittance
You will need to clearly state the purpose of your transfer. This is a regulatory requirement and can include reasons like:
- Family support/maintenance
- Gift
- Education expenses
- Medical treatment
- Investment
- Travel expenses
Step 2: Choose Your SBI International Money Transfer Method
SBI offers a few ways to send money internationally. The most common methods are:
2.1. Online via SBI Net Banking (REMXOUT facility)
This is often the most convenient method.
- Availability: For retail internet banking users.
- Limit: Up to USD 5,000 equivalent per transaction, with a limit of 4 transactions per month.
- Currencies: Primarily USD, GBP, and EUR.
- Process:
- Add Beneficiary:
- Log in to your SBI Online account (retail.onlinesbi.sbi).
- Navigate to "Payments/Transfers" or "e-Services" and then "International Funds Transfer" or "Outward Remittance Beneficiary."
- Select "Add & Manage Beneficiary" or "Foreign Outward Remittance Beneficiary."
- Provide all the beneficiary details gathered in Step 1 (Name, Account Number, SWIFT Code, Address).
- You will likely receive an OTP (One-Time Password) on your registered mobile number to confirm beneficiary registration.
- Beneficiary approval can take 4 hours to 1 day via OTP, or be immediate if you visit a branch.
- Initiate Transfer:
- Once the beneficiary is approved, go back to "Payments/Transfers" -> "International Funds Transfer."
- Select the approved beneficiary.
- Enter the amount you wish to send in the desired currency (e.g., USD).
- Confirm the exchange rate displayed. SBI applies its own exchange rate, which will include a markup over the interbank rate.
- Select the source of funds (your SBI account) and the destination country (USA).
- State the purpose of remittance clearly.
- Review all details carefully and submit the request.
- You may need to authorize the transaction with another OTP or your profile password.
- Add Beneficiary:
2.2. Via SBI Branch (FXOUT facility or manual wire transfer)
For larger amounts or if you prefer a physical interaction, visiting an SBI branch is an option.
- Availability: At all SBI branches.
- Limit: Up to USD 25,000 per transaction (for FXOUT). For larger amounts, contact your branch.
- Process:
- Visit your SBI home branch. It's advisable to visit your home branch as they have your KYC details.
- Fill out the International Outward Remittance Application Form. This form will require all the beneficiary details, your details, the amount, currency, and purpose of remittance.
- Provide necessary documents. You might need:
- Your PAN Card (mandatory).
- Passport (for verification).
- Any other documents requested by the bank related to the purpose of transfer (e.g., admission letter for education fees, medical bills for treatment).
- Submit the form and funds. The bank staff will assist you with the process. The amount will be debited from your account.
2.3. Via YONO SBI App
The YONO SBI app also allows international remittances for retail customers.
QuickTip: Slow down when you hit numbers or data.
- Limit: Up to USD 40,000 or its equivalent per transaction per day.
- Currencies: USD, EUR, GBP, CAD, AUD, NZD, SGD, and AED.
- Requirement: Your account must be KYC compliant with an updated PAN.
- Process: The process is similar to online banking: add beneficiary, then initiate the transfer. You might need to visit a branch initially to enable international remittance services on your YONO app or for higher limits.
Step 3: Understand the Costs and Exchange Rates
International money transfers involve several charges. Be aware of these to avoid surprises:
3.1. SBI Charges
- Transfer Fee: SBI charges a service fee for outward remittances. This can vary based on the amount and destination. Expect a fee ranging from INR 299 to INR 550, plus GST.
- Forex Conversion Markup: SBI applies a markup on the interbank exchange rate, which is how banks make money on currency conversions. This can typically range from 1% to 3% of the transaction amount. This is often the most significant "hidden" cost.
- GST: An 18% GST is applicable on the service fee and potentially on the forex markup amount, depending on the slab.
3.2. Intermediary Bank Charges
- International wire transfers often go through one or more intermediary banks before reaching the final destination. These banks also levy their own charges, which are deducted from the transferred amount.
- These charges can range from USD 15 to USD 30 (or equivalent in INR) and are difficult to predict precisely, as they depend on the correspondent banks involved.
3.3. Bank of America Incoming Wire Transfer Fees
- Bank of America typically charges a fee for receiving international wire transfers.
- For incoming international wire transfers, Bank of America usually charges $15. This fee will be deducted from the amount received by the beneficiary.
- Preferred Rewards members might have this fee waived.
In summary, expect the beneficiary to receive less than the amount you send due to these combined fees and exchange rate markups.
 |
Step 4: Confirm and Track Your Transfer
After initiating the transfer, you'll want to ensure it reaches its destination.
4.1. Confirmation
- Once you submit the transfer request, SBI will provide you with a transaction reference number or UTR (Unique Transaction Reference) number. Keep this safe.
- You might also receive an SMS or email confirmation.
4.2. Tracking Your Transfer
- Online Tracking: You can typically track the status of your international transfer through your SBI Net Banking portal under "Transaction Enquiry" or a similar section.
- Timeframe: International wire transfers usually take 2 to 5 business days to complete. Factors like public holidays in either country, time zones, and intermediary banks can affect this.
- Contact SBI Customer Service: If the transfer takes longer than expected, or if you need an update, use your transaction reference number to inquire with SBI customer service.
Important Considerations and Tips:
- Liberalised Remittance Scheme (LRS) Limits: As a resident individual in India, your international remittances are governed by the RBI's Liberalised Remittance Scheme (LRS), which allows you to remit up to USD 250,000 per financial year (April to March) for permissible current or capital account transactions. Ensure your transfer falls within this limit.
- PAN Card is Mandatory: For all international remittances from India, your PAN (Permanent Account Number) is a mandatory document.
- Accuracy is Key: Re-check all beneficiary details multiple times before confirming the transfer. Even a single incorrect digit in the account number or a misspelled name can cause significant delays or even loss of funds.
- Compare Exchange Rates: While convenience is important, compare SBI's exchange rates with other service providers (like Wise, Remitly, etc.) that specialize in international money transfers. These platforms often offer more competitive exchange rates and lower overall fees, though they might not be directly linked to your SBI account.
- TCS (Tax Collected at Source): Be aware of TCS regulations on international remittances. As of October 1, 2023, for most purposes other than education and medical treatment, a TCS of 5% applies to amounts exceeding INR 7 lakh in a financial year. For overseas tour packages, it's 5% without any threshold. For education funded by a loan, it's 0.5% over INR 7 lakh.
- Security: Always use secure networks for online banking. Be wary of phishing attempts and never share your banking credentials.
By following these steps and keeping the important considerations in mind, you can confidently send money from your SBI account to a Bank of America account.
10 Related FAQ Questions:
How to check the current exchange rate for SBI international transfers?
You can check SBI's prevailing "TT Selling Card Rate" for the specific currency (e.g., USD to INR) on their official website or by logging into your Net Banking account before initiating the transfer. This rate includes their exchange rate markup.
Tip: Make mental notes as you go.
How to find the SWIFT code for Bank of America?
The main SWIFT code for Bank of America for USD transfers is BOFAUS3N. For transfers in foreign currency, it's BOFAUS6S. Always confirm with the recipient or Bank of America directly for the most accurate and up-to-date information.
How to add an international beneficiary in SBI online banking?
Log in to SBI Net Banking, go to "Payments/Transfers" or "e-Services," then select "International Funds Transfer" or "Outward Remittance Beneficiary," and choose "Add & Manage Beneficiary" or "Foreign Outward Remittance Beneficiary." Fill in the required details and approve with an OTP.
How to track an international money transfer from SBI?
After initiating the transfer, you'll receive a transaction reference number. You can usually track the status of your transfer by logging into your SBI Net Banking account and navigating to the "Transaction Enquiry" section.
How to cancel an SBI international money transfer?
Once an international money transfer request is submitted and processed, it's generally irreversible and cannot be cancelled. Therefore, it's crucial to double-check all details before submission. If there's an immediate error, contact your SBI branch or customer service immediately.
How to know the limits for international money transfers from SBI?
For online transfers via REMXOUT, the limit is typically USD 5,000 equivalent per transaction, with a maximum of 4 transactions per month. For branch-initiated FXOUT transfers, it can go up to USD 25,000 per transaction. The overall annual limit under LRS is USD 250,000 per financial year.
Reminder: Focus on key sentences in each paragraph.
How to deal with intermediary bank charges during international transfers?
Intermediary bank charges are usually deducted from the principal amount transferred. You cannot directly control or prepay these. The best way to anticipate them is to be aware that the beneficiary might receive slightly less than the amount sent. Some services offer "sender pays all fees," but this typically just means the sending bank covers it and adjusts their exchange rate or fees accordingly.
How to provide the purpose of remittance correctly?
When filling out the transfer form (online or at the branch), there will be a designated field for "Purpose of Remittance." Be clear and concise (e.g., "Family Maintenance," "Educational Fees," "Gift"). This is a regulatory requirement under FEMA (Foreign Exchange Management Act) in India.
How to ensure the fastest transfer from SBI to Bank of America?
While wire transfers generally take 2-5 business days, ensuring all beneficiary details are 100% accurate, initiating the transfer during SBI's banking hours (preferably earlier in the day), and choosing the online method (if within limits) can help expedite the process.
How to avoid high exchange rate markups on international transfers?
To avoid significant exchange rate markups, consider using specialized international money transfer services like Wise (formerly TransferWise) or Remitly, which often offer more transparent and competitive exchange rates closer to the mid-market rate. However, you would need to transfer funds from SBI to these services first, and then from the service to Bank of America.
 |
