Want to send money from your HDFC Bank account in India to a Bank of America account in the US? It's a common need, whether you're supporting family, paying for education, or managing international finances. While it might seem a bit daunting with all the codes and details, I'm here to guide you through every step of the process to make it as smooth as possible!
Let's get started on how you can successfully transfer your funds.
Step 1: Gathering All Essential Information (The Crucial First Step!)
Before you even think about logging into NetBanking or visiting a branch, the most important thing you can do is gather all the necessary details. Imagine trying to bake a cake without all the ingredients! Missing even one piece of information can lead to significant delays or even a failed transfer, so let's get this right from the start.
-
From the Beneficiary (Recipient at Bank of America): This is where you'll need to communicate clearly with the person receiving the money.
- Full Name of the Beneficiary: As it appears on their Bank of America account. Accuracy here is paramount.
- Beneficiary's Bank of America Account Number: This is the full account number, including any leading zeros.
- Bank of America SWIFT/BIC Code: This is an international code that identifies banks and branches worldwide. Bank of America has different SWIFT codes depending on the currency of the transfer.
- For USD payments or unknown currency: BOFAUS3N
- For foreign currency (non-USD) payments: BOFAUS6S
- Bank of America's Address for Wire Transfers:
- For USD payments: Bank of America, N.A., 222 Broadway, New York, NY 10038
- For foreign currency (non-USD) payments: Bank of America, N.A., 555 California St., San Francisco, CA 94104
- Purpose of Remittance: What is the reason for sending the money (e.g., family maintenance, education expenses, gift, medical treatment)? This is required by Indian regulations (FEMA).
- Intermediary Bank Details (if applicable): While less common for direct transfers between major banks like HDFC and Bank of America, sometimes an intermediary bank is involved. If Bank of America or the beneficiary specifies one, you'll need their SWIFT code and name as well. Always confirm with the beneficiary if their bank requires any specific intermediary bank details.
-
From Your End (HDFC Bank Account Holder):
- Your HDFC Bank Account Number: The account from which the funds will be debited.
- Your PAN (Permanent Account Number): Your PAN must be updated with HDFC Bank to avail of international fund transfer facilities. You can update it via NetBanking if it's not already.
- Your Registered Mobile Number and Email ID: These need to be updated with HDFC Bank as OTPs and confirmations will be sent to them.
- Knowledge of LRS Limit Utilization: Be aware of your annual Liberalised Remittance Scheme (LRS) limit of USD 250,000 as a resident Indian. Any remittance will be counted against this limit.
Step 2: Choosing Your Transfer Method: Online (RemitNow) vs. Branch Visit
HDFC Bank offers two primary ways to initiate an international money transfer:
Sub-heading 2.1: Online through HDFC NetBanking (RemitNow)
This is generally the most convenient and quickest method. HDFC Bank's "RemitNow" service allows you to send money internationally from the comfort of your home or office.
Sub-heading 2.2: Visiting an HDFC Bank Branch
If you're not comfortable with online transactions, prefer personal assistance, or are transferring for a purpose not covered by RemitNow's online options, you can visit an HDFC Bank branch. This usually involves filling out physical forms.
For this guide, we will focus on the online method (RemitNow) due to its popularity and convenience.
Step 3: Initiating the Transfer via HDFC NetBanking (RemitNow)
Let's dive into the step-by-step process using HDFC's online platform:
Sub-heading 3.1: Logging In and Navigating to RemitNow
- Log in to HDFC NetBanking: Go to the official HDFC Bank website and log in using your Customer ID and Password.
- Navigate to Funds Transfer: Once logged in, look for the "Funds Transfer" or "Pay" section.
- Select "Outward Remittance" or "RemitNow": Within the funds transfer options, you should find an option for "Outward Remittance," "Send Money Abroad," or specifically "RemitNow." Click on this.
Sub-heading 3.2: Adding the Beneficiary
If you haven't sent money to this Bank of America account before, you'll need to add them as a new beneficiary.
- Select "Add Beneficiary": This option will be available under the RemitNow section.
- Enter Beneficiary Details: Carefully input all the information you gathered in Step 1:
- Beneficiary Name: (As per Bank of America account)
- Beneficiary Account Number: (Full account number)
- Beneficiary Bank Name: Bank of America
- Beneficiary Bank SWIFT/BIC Code: Choose BOFAUS3N (for USD) or BOFAUS6S (for other currencies if you intend to send non-USD, though USD is most common for BofA).
- Beneficiary Bank Address: (As per Bank of America's wire transfer address)
- Relationship with Beneficiary: Specify your relationship.
- Purpose of Remittance: Select the appropriate purpose from the dropdown list provided by HDFC. This is crucial for regulatory compliance.
- Confirm Beneficiary Addition: An OTP (One Time Password) will be sent to your registered mobile number for authentication. Enter the OTP to confirm.
- Cooling Period: HDFC Bank typically has a "cooling period" (usually 30 minutes) after adding a new beneficiary before you can initiate a transfer to them. This is a security measure.
Sub-heading 3.3: Initiating the Fund Transfer
Once the cooling period is over, or if the beneficiary was already added:
- Select "Funds Transfer" from RemitNow: Choose the option to initiate a new remittance.
- Select the Beneficiary: From your list of added beneficiaries, select the Bank of America account you wish to transfer to.
- Enter Transfer Details:
- Currency: Select "USD" (United States Dollar).
- Amount: Enter the amount you wish to transfer in USD.
- Purpose of Remittance (Re-confirmation): Reconfirm the purpose.
- Source of Funds: Specify the source of the funds (e.g., Savings, Salary, etc.).
- Full Value Remittance (Optional): HDFC Bank offers a "Full Value" facility for USD remittances to US locations, ensuring the beneficiary receives the exact amount without foreign bank deductions. There might be an additional charge for this, so review it carefully if you opt for it.
- Review and Confirm: A summary of your transaction, including the exchange rate applied by HDFC Bank, commission charges, and estimated GST, will be displayed. Carefully review all details, especially the exchange rate, as this can significantly impact the final amount received.
- Accept Terms & Conditions: Read and accept the terms and conditions.
- Authenticate with OTP: An OTP will be sent to your registered mobile number for final authentication of the transaction. Enter the OTP to complete the transfer request.
Step 4: Understanding Fees and Exchange Rates
This is an area where transparency is key, and understanding the costs involved is paramount.
Sub-heading 4.1: HDFC Bank Charges
- Commission: HDFC Bank charges a commission for outward remittances:
- Up to USD 500 equivalent: ₹500 + GST
- Above USD 500 equivalent: ₹1,000 + GST
- GST on Foreign Currency Exchanged: In addition to the commission, GST is applied to the amount of foreign currency exchanged. This is calculated based on slabs:
- Up to ₹1 lakh: 0.18% of ACE (Amount of Currency Exchanged), Min ₹45, Max ₹180
- Between ₹1 lakh and up to ₹10 lakh: ₹180 + 0.09% of ACE, Min ₹180, Max ₹990
- Above ₹10 lakh: ₹990 + 0.018% of ACE, Min ₹990, Max ₹10,800
- Exchange Rate Markup: HDFC Bank applies its own exchange rate (TT Selling Rate), which includes a markup over the interbank rate. This markup can typically be 2-3.5%, effectively reducing the amount of USD the beneficiary receives. This is often a 'hidden' cost that can add up significantly for larger transfers.
- TCS (Tax Collected at Source): As per Indian regulations, TCS is applicable on foreign remittances under LRS.
- For education (with a loan): 0.5% on amounts above ₹7 lakh.
- For education (without a loan) and medical treatment: 5% on amounts above ₹7 lakh.
- For other purposes: 20% on amounts above ₹7 lakh (this was effective from October 1, 2023). This TCS is collected by the bank at the time of transfer and can generally be claimed as a tax credit when filing your income tax returns.
Sub-heading 4.2: Bank of America Incoming Wire Transfer Fees
While HDFC Bank initiates the transfer, Bank of America may also levy a fee for receiving an international wire transfer. This can vary, but generally:
- Receiving international wire transfers in USD: Often around $15 to $20.
- Receiving international wire transfers in foreign currency: Can also have a fee or exchange rate markup if currency conversion is involved on their end.
Remember to factor in both HDFC's charges and potential Bank of America charges when calculating the total cost.
Step 5: Tracking Your Transfer and What to Expect
Once you've submitted your request, the waiting game begins.
Sub-heading 5.1: Processing Time
- HDFC Bank Processing: HDFC Bank generally processes online outward remittance requests within 24 working hours.
- International Transfer Time: After HDFC processes it, the money travels through the SWIFT network. International wire transfers to the US typically take 2-5 business days to reach the Bank of America account. Factors like intermediary banks, time zones, and public holidays in either country can affect this timeline.
- Daily Cut-off Times: Ensure you initiate the transfer before HDFC Bank's daily cut-off time for international transfers (usually late afternoon/early evening IST) to ensure same-day processing by HDFC. Bank of America's cut-off time for receiving wires is generally 5:00 PM ET.
Sub-heading 5.2: Confirmation and Support
- You will receive a confirmation message from HDFC Bank once your transfer request is successfully placed.
- You can usually track the status of your outward remittance within your HDFC NetBanking portal.
- If you encounter any issues or delays, you can contact HDFC Bank's customer care (refer to the FAQ section below for numbers).
Step 6: Important Considerations and Best Practices
- Double-Check Everything: Before confirming any transfer, meticulously double-check all beneficiary details (name, account number, SWIFT code, address). A single incorrect digit can lead to significant delays, return of funds (with associated charges), or even loss of funds.
- LRS Limit: Keep track of your annual LRS limit (USD 250,000). Exceeding this limit without proper documentation and approvals from RBI can have serious consequences.
- Purpose of Remittance: Always state the correct purpose. Misrepresenting the purpose can lead to regulatory issues.
- Exchange Rate Fluctuations: International transfers are subject to exchange rate fluctuations. The rate applied will be the one prevalent at the time HDFC debits your account. For large transfers, even small rate movements can impact the final amount significantly.
- Screenshot/Save Confirmation: Always save a screenshot or print out the confirmation page of your transaction for your records.
- Documentation for Capital Account Transactions: If your account with HDFC is less than a year old and you're performing a capital account transaction (e.g., investment abroad, remittance to own account abroad), HDFC may ask for additional documents like your last 12 months' bank statements from another bank or IT returns.
By following these steps and keeping the important considerations in mind, you can successfully transfer money from your HDFC Bank account to a Bank of America account with confidence.
Frequently Asked Questions (FAQs)
Here are 10 common questions related to transferring money from HDFC to Bank of America, with quick answers:
How to find the SWIFT code for Bank of America? The SWIFT code for Bank of America depends on the currency: BOFAUS3N for USD payments or unknown currency, and BOFAUS6S for foreign currency (non-USD) payments.
How to calculate the total cost of transferring money from HDFC to Bank of America? The total cost includes HDFC Bank's commission (₹500 or ₹1,000 + GST), GST on foreign currency exchanged, HDFC's exchange rate markup, and potential incoming wire transfer fees charged by Bank of America (typically $15-$20).
How to track a money transfer from HDFC to Bank of America? You can usually track the status of your outward remittance directly through your HDFC NetBanking portal under the "RemitNow" or "Funds Transfer" section.
How to deal with a failed HDFC to Bank of America transfer? If your transfer fails, first check your HDFC NetBanking for any error messages. Then, verify all beneficiary details (account number, SWIFT code, name). If details are correct, contact HDFC Bank customer care with your transaction reference number.
How to increase the daily transfer limit for HDFC international transfers? The maximum amount per transaction for online outward remittance through HDFC NetBanking is USD 25,000 or equivalent. For amounts exceeding this or your annual LRS limit, you might need to visit a branch or contact your relationship manager for special arrangements and additional documentation.
How to get a better exchange rate for HDFC international transfers? HDFC Bank applies its own TT Selling Rate. To potentially get a better exchange rate, you might explore alternative money transfer services that offer more competitive rates and lower markups, although this guide focuses on direct bank transfers.
How to know if Bank of America has received the money? The beneficiary can check their Bank of America account statement or contact Bank of America customer service after the typical 2-5 business days processing time. You can also provide them with the transfer reference number from HDFC.
How to contact HDFC Bank customer care for international transfers?
You can call HDFC Bank's general customer care numbers (e.g., 1800 1600 / 1800 2600 accessible across India). If you are abroad, you can call +9122 61606160. For specific email support, you can use support@hdfcbank.com for retail banking queries.
How to avoid intermediary bank charges during the transfer? HDFC Bank offers a "Full Value" facility for USD remittances to the US. Opting for this facility (usually for an additional fee) can help ensure the beneficiary receives the full amount without deductions by intermediary banks.
How to submit purpose of remittance documents for HDFC international transfers?
During the online RemitNow process, you select the purpose from a dropdown. For certain purposes or if your account vintage is less than a year, HDFC Bank might require additional documents to be emailed to RemitNow@hdfcbank.com as proof of the source of funds or purpose.
