Wire Transfer Process & Charges
Wire transfer is the electronic method of transferring money from one bank account to another. The advantage of wire transfer is that this facility is safe, fast, and convenient.
How Does Wire Transfer Work?
The wire transfer method can be used through the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network. We will use an example to illustrate the process of wire transfer through SWIFT.
For example, Claire goes to Bank A in the USA to transfer money to Jai in India who has a bank account with Bank B. Clair will have to provide details pertaining to Jai including his name, account number, and the amount to be sent. Since the amount cannot be transferred from Bank A to Bank B directly, an intermediary bank will assist in making the transfer of money successful. The amount is then deducted from Claire's bank account and simply added to Jai's bank account.
While the above example was related to international wire transfer, domestic wire transfer takes only one day to complete. Internation wire transfer may take up to five days to be completed.
Steps to Initiate a Wire Transfer
Given below are the steps you will have to follow to initiate a wire transfer:
- You will have to contact your bank where a request form is to be submitted to initiate the wire transfer.
- Enter details such as the name of the beneficiary, name of the beneficiary's bank, account number, IFSC code, etc.
- Mention the SWIFT codes of your bank and the beneficiary's bank.
- Submit the form following in which the amount will be deducted from your bank account and transferred to the account of the beneficiary.
Features and Benefits of Wire Transfer
Some of the features and benefits of wire transfer are:
- You can use this facility to open an FCNR fixed deposit account, pay your loan EMIs, or make investments.
- It is fast as it may take anything between two days and five days for the transaction to be successful depending on whether your transfer is domestic or international.
- The process is convenient as you only need to issue an instruction to your local bank.
- You can wire transfer up to 19 foreign currencies.
Required Documents for Wire Transfers
To initiate a wire transfer from India, you’ll typically need the following documents:
For Individuals:
- PAN Card
- Valid ID proof (Aadhaar, Passport, or Voter ID)
- Purpose of remittance form
- Beneficiary details (name, address, bank account number, SWIFT/BIC code)
- Form A2 (for international transfers above USD 25,000 or as per bank requirement)
For Businesses:
- Registration certificate
- GST details
- Invoice or contract for the transaction
- Authorized signatory ID proof
Banks Offering Wire Transfer Services in India
Most major banks in India provide both domestic and international wire transfer services. Here's a list of popular ones:
Public Sector Banks:
- State Bank of India (SBI)
- Bank of Baroda
- Canara Bank
- Union Bank of India
Private Banks:
- HDFC Bank
- ICICI Bank
- Axis Bank
- Kotak Mahindra Bank
Foreign Banks (operating in India):
- HSBC
- Standard Chartered
- CitiBank
Note: Charges, process time, and documentation requirements may vary from bank to bank. Always verify with your branch or online banking portal.
Other IFSC Related Article
FAQs on Wire Transfer
- How can I apply for wire transfer?
Contact your bank where a representative of theirs will get in touch with you.
- Are there any limits to making international wire transfers from India?
Yes, as per the guidelines by RBI, you can only deposit the amount in an NRE account, and you cannot use the Money Transfer Service Scheme (MTSS) to complete the transfer. It is also important that the details of your PAN are in place to ensure the transfer is successful.
- What is a SWIFT code?
SWIFT code is an 8 or 11-digit alphanumeric code that helps in determining banks so that international transfers can take place in a smooth and accurate manner.
- Is wire transfer the same as NEFT?
No, wire transfer is not the same as NEFT as the latter is conducted in hourly batches, while the former can be done instantly.
- What is the maximum amount that I can wire?
Though there is no limit to the amount that you can wire, it is better to check with your beneficiary's bank regarding the amount limit.
- Do all banks offer wire transfer facilities?
No, not every bank offers a wire transfer facility.
- What are the different types of wire transfers?
There are two types of wire transfers - domestic and international wire transfers.
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