digibank Remittance Services

Frequently Asked Questions

We promise a convenient and secure online overseas money transfer service on Internet Banking (IB) with following benefits*:
  • Zero fees - We will not charge you any fees. No fees imposed on your recipient either
  • Same day delivery - Your money will be delivered same day if your transaction is sent before cut-off time
  • Very competitive exchange rate
  • Guaranteed delivery of full credit to your payee
  • 24x7 confirmed fx rates
and all this backed by Asia’s Safest, World’s Best Bank. *T&C apply.

Login to your digibank Internet Banking and click on 'Overseas Transfer' tab under 'Pay & transfer'. You need to add new overseas payee by providing bank account details or 'Start a transfer' if your payees are already added. You will receive confirmation on successful processing of the payment request on your registered mobile no. and email Id.

Post login to digibank application, you will be required to add new overseas payee before initiating an overseas payment. Please keep required details handy like payee full name, account no., bank details etc. to add overseas payee.

Please ensure that you have downloaded and logged into digi app at least once before adding a new overseas payee.

Once the payee is set up, your newly added payee will be saved so that you don’t need to enter them all over again in your next transfer.

Currently, remittances overseas are not permitted on mobile application in accordance with extant law/regulation in India. You will be able to initiate an overseas transfer from digibank Internet Banking page which can be opened on your mobile.

Once you have placed the overseas transfer request on digibank Internet Banking and the transaction is successfully processed by us, your savings account will be debited with the equivalent INR amount as shown on the transaction confirmation receipt.

  • Account not having sufficient funds
  • Amount of transaction exceeding USD 25000 or equivalent
  • In case the annual LRS limit of USD 250,000 has been utilized
  • If beneficiary country is not part of “Permitted Country List”
  • If the beneficiary is not part of the “Permitted Beneficiary List”
  • Remittance being sent to your own account overseas
  • If incorrect or partial details of beneficiary / beneficiary’s bank has been provided
  • In case of unauthorized / non-permissible transactions not allowed as per RBI Regulations

Dynamic inbuilt security is safer & more convenient than OTP; digibank sets the benchmark when it comes to secure banking. For added security, we use a digital token for adding new overseas payee. All overseas transfers are secured with an SMS OTP for transaction authorisation. Also, you can set your own daily overseas transfer limit on digibank Internet Banking.

You may send funds overseas to over 200 countries across the world. Through our dedicated partner bank arrangements, we ensure to provide fast, convenient and cost-effective fund transfer services. The currencies supported currently are USD, EUR, GBP, CAD, SGD, HKD and AUD.

There are no documents required for transferring funds overseas as required payment details and declaration are collected digitally while submission of the overseas transfer request on digibank Internet Banking. Please go through the Terms & Conditions (T&C) and FEMA declaration that are provided on our website. You will have to agree and confirm applicable T&C and declaration before transaction submission and by virtue of you accepting these, it would be deemed that you agree to these.

Money can be sent overseas for following purposes:
  • Maintenance of Family / Close Relatives Abroad
  • Education Abroad
  • Medical Treatment Abroad
  • Emigration
  • Other Travel (Including holiday trips & settlement of international credit card transactions)
  • Business Travel
  • Travel for Education (including fees, hostel expenses etc.)
  • Travel for Medical Treatment
  • Travel for Pilgrimage
  • Gifts / Donation

The amount being sent to the beneficiary will be shown to you while placing the overseas transfer on digibank Internet Banking. We ensure that the taxes and charges (if applicable) are displayed on the portal. This offers full transparency on charges thus ensuring you send the amount inclusive of applicable charges. Your payee receives the full amount for all your transfers to Australia, Canada, Eurozone countries, Singapore, UK and USA in respective local currencies. For all other countries or if your transfer to the above countries was in a non-local currency, there may be a charge applied by an intermediary and / or beneficiary bank and the net amount credited to recipient's account may differ from the amount you sent.

The payee will receive the funds on the same day if payment is sent before cut-off time for overseas transfer to Australia, Canada, Eurozone countries, Hong Kong, Singapore, UK and USA. If funds are received after cut-off time, the payee's account will be credited on the next working day. For all other countries or if your transfer to the above countries was in a non-local currency, the payment will be delivered within 1-3 working days if sent before cut-off time and 2-4 working days if sent after cut-off time. Please check the cut-off time for various countries on our website. The 'Estimated Arrival' time is displayed to you on the transaction screen for full transparency.

The overseas transfer may get stuck for compliance/other checks at payee's bank. In case your transaction has not been completed as per the 'Estimated Arrival' shown on the transaction confirmation page, please reach out to us on our dedicated Remittance Customer Care no. 1860 208 7368 from 10am to 7pm on working days or write to us at customercareindia@dbs.com.

You will receive a transaction confirmation SMS and Email on your registered mobile number and email id once the overseas transfer request is placed on digibank Internet Banking. You can track the status on transaction history page which will be updated once your payment is successfully processed by us. Your payee will receive the payment as per the cut-off time advised on the payment confirmation page. In case, your transaction has not been completed as per the 'Estimated Arrival' shown on the transaction confirmation page, please reach out to us on our dedicated Remittance Customer Care no. 1860 208 7368 from 10am to 7pm on working days or write to us at customercareindia@dbs.com.

There is minimum limit of USD 10 per transaction. The maximum transaction limit for overseas transfer is USD 25,000 per transaction which is also the maximum daily transaction limit. The annual transaction limit is USD 250,000 or equivalent.

The maximum limit of USD 250,000 or equivalent per year for transferring money abroad under Liberalized Remittance Scheme (LRS) is applicable for a customer for all transactions routed through all permissible channels / Authorized Dealers Banks (subject to any purpose specific limit specified by Reserve Bank of India).

Yes. You have the option to update your daily overseas transfer limit on digibank Internet Banking. Default daily limit is USD 5,000 which can be configured to a maximum amount of USD 25,000 or equivalent to suit your needs.

No, there is no limit on the no. of overseas transfers that can be initiated on digibank Internet Banking.

The overseas money transfer facility on digibank Internet Banking is offered free for transfer to Australia, Canada, Eurozone countries, Hong Kong, Singapore, UK and USA. For all other countries, or if your transfer to the above countries was in a non-local currency, INR 500 will be charged upfront as bank (processing) fee. The applicable charges along with taxes are displayed to you on the transaction screen for full transparency.

As stipulated by the Government of India & post GST implementation, any conversion from one currency to another - sale, encashment & remittance will be charged as per applicable GST rates on the value of service as per following slabs:
  • 1% of the gross amount of currency exchanged for an amount up to INR 1,00,000 subject to the minimum amount of INR 250
  • INR 1,000 plus 0.5% of the gross amount of currency exchanged for an amount exceeding INR 1,00,000 and up to INR 10,00,000; and
  • INR 5,500 plus 0.1% of the gross amount of currency exchanged for an amount of rupees exceeding Rs. 10,00,000/-, subject to maximum amount of Rs. 60,000/-

Let's say you are exchanging currency of INR 50,000:
Applicable value of service = 1% of INR 50,000 i.e. INR 500 on which GST is applied @18% i.e. 18% of INR 500 = INR 90. Thus, GST payable is INR 90.

Now Let's say you are exchanging currency of INR 150,000:
Applicable value of service = INR 1,000 plus (0.5% of INR (150,000 - 100,000) i.e. INR 1,250 on which GST is applied @18% i.e. 18% of INR 1,250 = INR 225. Thus, GST payable is INR 225.

Let us explain with another example wherein you are exchanging currency of INR 60,000,000:
Applicable value of service = INR 5,500 plus (0.1% of INR (60,000,000 - 1,000,000) i.e. INR 64,500. But maximum value of service is capped at INR 60,000. Hence, the GST is applied @18% on INR 60,000 i.e. INR 10,800. Thus, GST payable is INR 10,800.

Hope that clarifies.

Yes, You can initiate overseas money transfer request online anytime at your convenience. This facility is available 24x7. You can login and place overseas payment request anytime, even on holidays. The payment request will be processed on next working day as per the cut-off time defined for overseas transfers, available on the website.

We offer 24x7 locked-in FX rates. You will be able to book the transaction at the displayed rate (i.e. guaranteed rate) and the funds will get debited from your savings account at the same rate on successful processing of the transaction.

You may contact us at at our Remittance Customer Care number 1860 208 7368 from 10am to 7pm on working days or write to us at customercareindia@dbs.com for any cancellation request. Please note that any cancellation of the transaction will be handled by DBS Bank on best effort basis.

Please cross-check your account statement. In case your bank account has been debited but you can't see the transaction in the remittances history, please reach out to us at our Remittance Customer Care number 1860 208 7368 from 10am to 7pm on working days or write to us at customercareindia@dbs.com.

You can share the Nostro / Correspondent Bank details with the remitter as mentioned in the link: https://www.dbs.com/in/iwov-resources/pdf/deposits/correspondent-bank-details.pdf.

Tax Collected at Source (TCS) is an income tax collected in India on some transactions given in the Section 206C of the Income Tax Act 1961.

From 1st October 2020, Banks, being an Authorised Dealer (‘AD’), are required to collect TCS on certain remittances made under the Liberalised Remittance Scheme.

LRS is a scheme of RBI which allows a resident individual to freely remit money out of India up to USD 2,50,000 per financial year for any permissible current account transactions such as travel, medical treatment, studies abroad, etc. For details on LRS, you may refer to the Master Directions and FAQs on RBI’s website https://www.rbi.org.in/

The Union Budget 2020 has mentioned that "As authorized dealers, Banks are required to collect tax at source (TCS) @5% u/s 206C on foreign remittances exceeding ₹7 lakh under Liberalized Remittance Scheme (LRS) of RBI."

We would like to inform you that a recent announcement has clarified the below on TCS:

  1. While the Rs.7 lakh threshold is applicable for the entire financial year, TCS has now been deferred to 1st October 2020. Therefore, TCS will not be collected on any amount of foreign remittances until 30th September 2020.
  2. In case the remittances cumulatively exceed Rs.7 lakh for the FY 2020-21, any remittances made post 1st October 2020 will attract TCS.
  3. The bank will collect TCS for any amount remitted for overseas tour program packages, unless the same has already been collected by the seller of the overseas tour package.
  4. TCS will be applicable @0.5% in cases where the source of the remittance amount is through an educational loan (u/s 80E).

Illustrations

TCS Illustration 1

TCS Illustration 2

TCS Illustration 3


Sharing a few illustrations for your reference :

  1. The aggregate amount of remittance made by customer during the financial year is INR 500,000. Whether TCS applicable to this customer?
    No, since the aggregate amount of remittance made during the financial year is less than INR 700,000, TCS is not applicable to this customer.

  2. The aggregate amount of remittance made by customer during the financial year is INR 1,000,000. Whether TCS applicable to this customer?
    Yes, since the aggregate amount of remittance made during the financial year is more than INR 700,000, TCS is applicable to this customer. In such case TCS will be applicable @5% on INR 300,000 (on amount exceeding INR 700,000).

  3. The aggregate amount of remittance made by customer upto 30 September 2020 is INR 500,000 and from 1 October 2020 to 31 March 2021 is INR 500,000. Whether TCS applicable to this customer?
    Yes, since the aggregate amount of remittance made during the financial year is more than INR 700,000, TCS is applicable to this customer. In such case TCS will be applicable @5% on INR 300,000 (on amount exceeding INR 700,000).

  4. The aggregate amount of remittance made by customer upto 30 September 2020 is INR 1,000,000 and from 1 October 2020 to 31 March 2021 is INR 500,000. Whether TCS applicable to this customer?
    Yes, since the aggregate amount of remittance made during the financial year is more than INR 700,000, TCS is applicable to this customer. However, in this case threshold limit is already exceeded prior to 1 October 2020, therefore, the TCS would apply @5% on every amount remitted after 1 October 2020 i.e. on INR 500,000.

  5. Customer Mr. A has made remittance of USD 6,500 towards Overseas Tour Package to M/S. Thomas Cook, USA. Whether TCS applicable to this customer?
    Yes TCS @5% would apply in this case even if the amount of remittance is INR 481,000 (USD 6,500*INR 74), as there is no threshold amount on remittances towards ‘Overseas Tour Package’.

  6. Customer Mr. A has made remittance of USD 20,000 towards education fees out of India out of his loan borrowed from Scheduled Bank (qualified loan under Indian Income Tax Act). Is TCS applicable to this customer and at what rate?
    Yes. In this case, since the amount of remittance is INR 14,80,000 (USD 20,000*INR 74) and made toward pursuing education out of India out of loan qualified under the Indian Income Tax Act, TCS @0.5% would apply on the amount exceeding INR 700,000.

  7. Customer, the US embassy in India, has made remittance of USD 20,000 for official purpose to USA. Is TCS applicable to this customer?
    No TCS is applicable on remittances made by an embassy, a High Commission, a legation, a commission, a consulate, the trade representation of a foreign State etc.

Overseas tour program package is “any tour package which offers visit to a place outside India and includes expenses for travel or hotel stay or boarding or lodging or similar expenses”

Thus, even the expenses for travel such as ticketing, hotel stay, or boarding or lodging etc. are included in the overseas tour package.

TCS Rates

Yes there are following exceptions when TCS need not be collected:

TCS Provision

No, TCS provisions cover all remitters availing LRS except those mentioned under above question.

TCS is to be collected at the time of debiting the amount payable by the remitter or at the time of receipt of such amount from the remitter, by any mode, whichever is earlier.

For remittances up to USD 25,000/day, you may explore and avail instant transfers from the comfort of your home by using digibank by DBS https://www.dbs.com/digibank/in/banking/remittance/international-money-transfers.

Customers can call their Relationship Managers for Remittances above USD 25,000 upto USD 2,50,000 in a financial Year.