SBM Bank Forex Rates Explained | How to Save on Transfers

When you're dealing with international clients, even a small difference in forex rates can have a huge impact on the final amount you receive. This is why, if you are planning to partner with State Bank of Mauritius (SBM), it's important to understand the forex rates it offers, along with other charges that you should expect.

This will help you compare SBM Bank forex rates with other banks and fintech platforms, so you can keep more of what you earn. In this article, we'll look at SBM Bank's TT buy and sell rates along with alternative platforms you can consider to save on international transfers.

The most common way to move money across countries is through a TT (telegraphic transfer). But besides TT, SBM Bank also offers different rates depending on the direction and type of transaction.

1. TT buying rate (TTB)

This is used when the bank converts foreign currency into INR, for example, when an overseas customer pays you. It also applies to inward remittances, export bill collections, and certain deposit conversions.

2. TT selling rate (TTS)

This rate applies when you send INR abroad. It is also used for outward transfers, cancellations of purchases, or converting certain deposits into foreign currency.

3. Bill buying rate

This is used when the bank purchases or discounts export bills. The Rupee equivalent is paid immediately, but the foreign currency is received later.

4. Bill selling rate

This bill rate is used when converting INR to foreign currency for import bills. It determines how much foreign currency you'll need to pay your overseas supplier.

5. Other forex rates

SBM also offers travel currency selling (TCS) and travel currency buying (TCB) rates. TCB applies when you buy foreign cash for trips. TCB is for exchanging leftover foreign cash back into INR. The bank also has separate forex rates for buying and selling currency notes.

SBM Bank India levies different charges and rules that can affect how much you actually pay or receive. Understanding these can help you plan your transactions better.

SBM Bank forex exchange rate table:

*JPY rates are for 100 units of the currency.

Notes:

Card rates are for transactions under USD 10,000 and can change with market movements.

All rates are indicative; to know what the SBM Bank India foreign exchange rates are today, please get in touch with a bank official.

In addition to this, SBM Bank also has an FX-Retail platform with different rates and charges:

Real-time forex rates are important for businesses dealing with international payments. Since currency values change all the time, even a small difference can affect how much you get or spend.

Real-time rates help you:

• Buy or sell currency at the right time.
• Have more control over costs and avoid surprises.
• Price your products/services accordingly.

SBM Bank's rates are usually different from the mid-market rates you see online. This is because of several factors like spreads, fees, market volatility, and RBI regulations.

1. Spreads

Banks earn money by keeping a small gap between the rate they get and the rate they give you. For example, if the interbank rate to buy USD is 84.00, the bank might offer it to you at 84.3. And if you sell USD, they may give you 83.7. This difference is called the spread. It covers the bank's cost of processing the transaction.

2. Fees

Besides spreads, SBM Bank may also charge a flat fee or a percentage of the transaction. The fee helps the bank deal with risks such as currency fluctuations or inflation. Plus, since banks spend more on handling and processing transfers than online platforms, their overall costs tend to be on the steeper end.

3. Market volatility

Exchange rates keep fluctuating. To keep up, the SBM Bank forex margin in India also changes. This protects the bank from losses if a currency's value is expected to fall.

4. Regulations and Taxes

Indian banks follow rules set by the Reserve Bank of India (RBI), which affects how rates and fees are determined. In case there are compliance and regulatory costs, the bank passes them on to the customers.

The effective exchange rate shows how strong or weak a country's currency is compared to the currencies of the countries it trades with. It helps find out if the currency is priced fairly, too high, or too low. Here's an example.

Say India trades with the US, the EU, and China.

• The US accounts for 20% of trade
• The EU 50%
• China 30%

To calculate the effective rate, each exchange rate is weighted by its share in trade and adjusted for inflation. This shows how India's currency compares against its main trading partners.

The easiest way to check SBM Bank's forex rates is by visiting their official website. Here, you can view the latest exchange rates and remittance fees for different types of transactions. But if you prefer speaking to someone, you can call the bank's customer support team to ask about current rates and charges.

Alternatively, you can visit a nearby branch to get help from the staff, who can explain how the rates work. They will also be able to help you choose the best option for your transfer or forex needs.

Traditional banks like SBM often have hidden costs in cross-border payments. Even when they advertise no fees, the actual amount you receive can be lower because of spreads between their TT buy and sell rates. This makes it tricky to know exactly how much you'll receive.

But Xflow offers a more transparent solution. It uses real-time mid-market rates with zero forex markup, so you always know the exact amount that will be credited. Plus, it has flat transaction fees and settles payments within one business day.

Xflow also lets your international customers pay using local rails in their home currency. This further helps avoid SWIFT and correspondent bank deductions. Doesn't matter if you're a freelancer, SME, or an enterprise, Xflow ensures lower costs, faster settlements, and fewer surprises compared to traditional bank rates.

Sign up today to receive international payments and manage forex efficiently.

Understanding SBM Bank's forex rates and charges is important if you deal with international payments. But while it offers a secure way to send and receive money, spreads, fees, and slower settlements can eat into the amount you actually receive.

For a faster, reliable, and more cost-effective solution, choose Xflow. It has zero hidden costs, offers forex rates linked to the mid-market rates, and gives you more control over your cross-border transactions.