HDFC Bank has introduced full value outward remittance service in US Dollar (USD) Euro (EUR) and the Pound Sterling (GBP) for trade and retail customers. As per the bank, its a first-of-its-kind ‘Full Value’ feature ensuring that when a customer sends money abroad, the full amount remitted will reach the overseas beneficiary, without any deductions of foreign bank charges.
The service will come handy for investors looking to buy global stocks including investing in the US stock market.
Before you start buying US stocks, you will have to buy dollars from your INR under the Liberalized Remittance Scheme (LRS) limits prescribed by the Reserve Bank of India (RBI). Currently, under the LRS rules, any resident individual including a minor ( countersigned by a guardian) is allowed to remit up to 2.5 lakh US dollars (USD 2,50,000 ) in each financial year. At an exchange rate of Rs 78 to a dollar, it is about Rs 1,95,00,000 or Rs 1.95 crore.
The Bank till date has supported Full Value remittance only for individual customers in USD denomination. In an industry-first, it has expanded this offering to include Trade related remittance transactions. Furthermore, it will be offered in USD, GBP and EUR and will be applicable to current and savings account holders for both trade and retail remittances sent worldwide.
“HDFC Bank has always been at the forefront of creating tailor-made, innovative products to delight its customers. We are therefore excited to bring out our full-value outward remittance service, not just for individuals but for traders as well. We saw an acute customer need in the remittances space were happy to address it. We are certain this product will be a game-changer for our customers,” said Mr Jatinder Gupta, Business Head, Retail Trade and Forex, HDFC Bank.
This service can be availed of by approaching the branch for Trade related remittance from India, individual related remittance under Liberalized Scheme and Non-resident remittances from India in (in USD, GBP and EUR) and RemitNow – NetBanking portal (in USD only) for foreign outward remittances under the Liberalized Remittance Scheme.