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FAQ's-Forex Matter

FAQs on Inward Customer Payments

Q

What all information is mandatory for me to provide in the form while I remit funds to beneficiary having account with Bank of Baroda?

You need to provide Beneficiary’s name, Account No, Amount, Currency and Purpose of remittance.
Our Bank Swift Code is BARBINBBXXX

Q

Is it mandatory to mention Purpose of funds while remitting funds to my Bank of Baroda Account?

Yes, it is mandatory to mention the same

Q

Is there any limit on fund transfer?

No, Remitter may remit any amount of funds to India

Q

I have received a Foreign Inward Customer payment, what I am supposed to do?

Customer to contact his base branch and needs to submit duly filled and signed application form along with copy of supporting documents. Customer generally receives a mail or SMS on his registered email ID and mobile no. whenever banks received foreign inward customer payment.

Q

Where can I get the application form?

Application forms can be downloaded from our Website under Application form page or from the following link: https://www.bankofbaroda.in/application-forms.html.
Customer can collect the same from any of our branches.

Q

What Supporting documents do I need to submit along with Application form?

For general remittances received you need to submit copy of invoices (if any). For Trade related services you need to submit copy of proforma invoices depicting therein details of trade transaction.
However, Bank may ask for any other documents if required.

Q

I receive regular payments from same party, do I need to fill application form each time I receive payment?

In case customer is receiving regular payments from same party, you may give One Time Payment Instruction to your branch and when we receive your payment same will be processed as per your One Time Instruction.

Q

In which Foreign Currencies I may receive funds in your Bank?

You may receive funds in following -15- currencies: US Dollar (USD), Great Britain Pound (GBP), EURO, Japanese Yen (JPY), Swiss Franc (CHF), Canadian Dollar (CAD), Australian Dollar (AUD), Danish Krone (DKK), Norwegian Krone (NOK), Swedish Krona (SEK), New Zealand Dollar (NZD), Hong Kong Dollar (HKD), Singapore Dollar (SGD), Saudi Riyal (SAR) and United Arab Emirates Dirham (AED).

To know the details about Nostro account, you may visit our website www.bankofbaroda.com or may visit our nearest Branch.

Q

How can I retain my funds in Foreign Currency?

Customers maintaining Foreign Currency Accounts i.e. EEFC/RFC account can retain the same by mentioning EEFC/RFC account no on Disposal Instruction.
NRI customers to book FCNR (B) deposit - For this they need to mention for FCNR (Deposit) in MT103 swift message to avoid conversion of funds. We at Bank of Baroda open FCNR(B) Deposit in USD, GBP, EURO, YEN, AUD and CAD currencies only.

Q

Can I receive funds from any country?

Yes, you may receive funds from any country and person except OFAC sanctioned countries or Specially Designated Nationals (SDNs).

Q

What are OFAC sanctioned Countries and SDN persons?

As parts of its enforcement efforts, Office of Foreign Assets Control (OFAC) publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups and entities such as terrorists and narcotics traffickers and designated under program that are not country specific

To know more about OFAC and related information you may visit www.treasury.gov website.

Q

Whom to contact in case my account is not credited?

You may contact your Base branch.

Q

What are the charges for receiving Inward Customer payments?

For service charges you may visit our website www.bankofbaroda.com or visit your nearest Bank of Baroda branch.

Q

What are the different types of accounts that an NRI can open in India?

NRI can open the following accounts:
In Rupees: - NRE & NRO
In Foreign Currency: - FCNR

Q

Can an NRI open an account with Zero balance?

Yes, an individual taking up an employment, business, vocation etc. can complete the account opening formalities prior to going abroad with zero balance. Subsequently, he must remit funds to make the account operative within a reasonable time, where after only cheque book will be issued.

Q

Can an NRI give Power of Attorney to a resident to operate his accounts and for making investments on his behalf?

Yes, an NRI can appoint a Power of Attorney holder to make local payment from his NRE / NRO a/cs. and also investments on his / her behalf.

Q

What are the restrictions imposed on the Power of Attorney?

A Power of Attorney holder cannot do the following acts:

  • Open and close NRI a/cs. in the name of NRI
  • Repatriate funds from a/c. in the form of DD/TT etc., unless specified in P.A.
  • Give gifts.
  • Transfer funds to NRE accounts other than that of Principals.
  • Cannot raise loans/execute documents on behalf of NRI.
  • Cannot tender FC/FCTC.
Q

Can an NRI deposit local funds into NRE account?

No, only credits coming from abroad in the form of DDs/TTs/MTs/FCs/TCs etc. can be deposited in NRE a/c. Local money has to be credited to NRO account of an NRI.

Q

Is interest earned on NRE/NRNR/FCNR/NRO a/cs. taxable?

No tax is applicable to interest earned on NRE/FCNR & NRNR a/cs. However, interest earned on NRO a/cs. is subject to TDS as per extant guidelines.

Q

Is interest on NRO account repatriable?

Yes, interest earned on NRO a/cs. can be repatriated or credited to NRE/FCNR accounts subject to payment of tax.

FAQs on Import Transactions

Q

How many currencies Bank of Baroda is Dealing With.

We at Bank of Baroda deals in -15- currency.

Q

What kind of Trade Finance products BOB is offering?

a) Import LC Issuance, Imports Bill Payments of Goods and services, Advance payment Against Import of Goods and services

b) Export LC Advising, Export Bills Financing, Export Bills Handling

Q

What are the products offered by Bank of Baroda under Trade Credit for Imports of Goods and Services?

UPAS LC and SBLC through Trade Credit.

Q

What is UPAS LC and how it is difference from regular Import LC ?

It is actually the combination between sight L/C and usance LC.UPAS is a usance L/C that is payable at sight basis to the exporter/seller while the payment settlement from the importer /buyer to the lc issuance bank will be made on due date as per contracted terms.

In UPAS LC payment is made on sight basis by funding bank after receiving the acceptance from Issuing Bank and Issuing Bank will honour or make payment to funding Bank on Due Date along with Interest/Charges and in Import LC Issuing Bank will honour or make Payment on Due Date as per LC terms.

Q

What are the charges/Commission applicable for UPAS LC and Trade credit through SBLC.

As per the latest service Charges uploaded in Bank’s Website

Q

How can I get a quote for UPAS LC or Trade Credit through SBLC.

Our B category Branch will arrange quote for UPAS LC or Trade Credit through SBLC.

Q

What type of collateral you require to open an Import LC.

A Fixed deposit as a collateral for opening of Letter of Credit in case no credit limit is with us or Collateral pledged at the time of Issuance of limit during initial Sanction.

Q

Can you Issue an Import LC if I do not have a Credit limit with you.

Yes. In case you do not have credit limits with Bank of Baroda, open a Fixed deposit equivalent to 110% amount of Letter of Credit and avail Letter of Credit against it.

Q

I have opened an Import LC, now I want to cancel it will you refund the Charges taken while opening the LC.

Once the letter of credit is opened your fee cannot be refunded.

Q

What is the time limit to settle Import Payment for Goods and Services imported in India?

General guideline as per RBI is 180 Days or as prescribed by RBI in sector specific guidelines.

Q

Can an Importer receive documents directly from overseas supplier?

Yes you can receive documents directly from your supplier as per guidelines prescribed by RBI.

Q

I am not having any credit Limit with your Bank can I submit Import documents received directly from overseas supplier for payment.

Yes, A non borrower customer can submit direct documents for payment

Q

Can I make an import payment for Goods if AD Code of other Bank ID is mentioned on BOE?

AD code of our Bank is to be mentioned on BOE or We can change AD code to our Bank provided NOC from previous AD code Bank that they have not done any payment under the said Invoice.

Q

As an Importer can I Waive charges of foreign Bank mentioned on Covering letter in Bank to Bank Collection Documents?

As an Importer you cannot waive foreign Bank charges under collection.

Q

Can I submit/Collect the Import documents directly to/from your Forex B Category Branch if my base Branch is not an Authorised Forex Branch?

Yes, an Importer can submit/collect Documents directly to/from our B Category Branch.

Q

What documents I have to submit under direct Import Bills payment?

Application Form, Commercial Invoice, Transport Documents, Evidence of Import/Bill of Entry.

FAQs on Outwards Remittance Transactions

Q

What are advantages of doing trade with Bank of Baroda?

Bank of Baroda with its widespread branch network and centralized state of the art Trade Finance Back Office provides you a quick and hassle free services for trade finance service.

Q

What is an Outward Remittance?

Remittances which are being sent outside India (except Nepal and Bhutan) which are permissible under Foreign Exchange Management Act (1999) and subsequent amendments.

Q

How can I do outward remittance?

For making an outward remittance, please walk into your Bank of Baroda base branch and initiate the outward remittance by filling up Outward Remittance Application specifying the necessary details. In addition to this, you have to provide documentary proof of the source of the funds sought to be remitted and C.A. Certificate in Form 15CA and 15CB.

Q

Is PAN mandatory for remittance?

PAN is mandatory for all types of remittances except for repatriation from NRE account.

Q

What are the currencies available for doing outward remittance from Bank of Baroda?

We offer remittance services in USD, GBP, EUR, AUD, CAD, SGD, JPY, NZD, AED, SAR, NOK, SEK, DKK, CHF and HKD.

Q

Who can be treated as close relatives for the purpose of "maintenance of close relatives"?

Member of HUF Husband (or)Wife  
Father (including Step Father) Mother (including Step Mother) Brother (including step Brother)
Sister (Including Step Sister) Daughter Daughter’s Husband
Son(Including step Son) Son’s wife  
Q

What is the Liberalised Remittances Scheme? Who is eligible to remit under this scheme?

The Liberalised Remittance Scheme is a facility provided by the RBI for all resident individuals including minors for remittance up to USD 250,000 per financial year for permissible current or capital account transactions or a combination of both. This facility will not be available to corporate, partnership firms, HUF, Trusts, etc.

Q

Under the Liberalised Remittance Scheme what are purposes for which remittance can be done?

  • Private visits to any country (except Nepal and Bhutan)
  • Gift or donation
  • Going abroad for employment
  • Emigration
  • Maintenance of close relatives abroad
  • Travel for business, or attending a conference or specialised training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/ check-up
  • Expenses in connection with medical treatment abroad
  • Studies abroad
  • Any other current account transaction which is not covered under the definition of current account in FEMA 1999.
Q

What is the limit for a resident individual to send gift or donation to a person resident outside India?

The remittance towards gift and donations from resident individual is permissible under LRS limit of USD 250000 per FY.

Q

What are the charges for remittance?

Please refer our Bank’s website for schedule of charges.

Q

What is GST on Forex conversion?

All foreign currency conversion transactions are subject to prevalent GST rates of the Govt. of India with effect from 1st July 2017. GST is charged on the taxable amount as per the prevailing GST rates. Taxable amount can be calculated as.

Amount of Currency Exchanged Taxable amount
Up to Rupees 1,00,000 1% of Gross amount exchanged, subject to minimum amount of rupees 250
From Rupees 1,00,001 to Rupees 10,00,000 Rupees 1,000 plus 0.5% of Gross Amount exchanged
Above Rupees 10,00,000 Rupees 5,500 plus 0.1% of gross amount exchanged, subject to maximum of Rupees 60,000
Q

What exchange rate shall be applicable for outward remittance ?

Banks lists the daily Foreign Exchange Card Rate in the banks website and TTSell rate will be applicable and may vary based on the market fluctuations.

Q

Can transaction request be given in INR or Foreign Currency?

Transaction request can be given in both foreign currency and INR. While giving a request in INR, it is mandatory to specify the foreign currency in which remittance is to be processed.

Q

Will transaction be processed on non-working days?

All transactions shall be processed only on working days, (public holidays as per Negotiable Instruments Act, 1882, Saturday and Sunday shall be excluded from working days). In case a transaction is due on weekend or on public holiday then the transaction will be processed on the next working day.

Q

In case my transaction gets cancelled/ rejected/ reversed, by the beneficiary bank/ correspondent bank due to any details mismatch, what will happen to my funds?

Our team will get in touch with the customer and resolve the issue on best effort basis.

Q

What are important details required to make education fees payment?

While giving a request for education fees payment, student name and Student ID shall be required for the beneficiary institution to identify the payment. In case a letter/invoice/demand letter has been provided by the educational institution regarding the payment instructions, same shall be provided. It is mandatory to mention foreign bank charges (SHA or OUR) on the request form.>

Q

What are foreign bank charges?

All cross border remittances involves Foreign Bank charges which pertains to intermediary Bank fees. The remitter has an option to choose from OUR or SHA. While Choosing ‘OUR’, the intermediary/Foreign Bank charges will be borne by the Remitter and full amount of remittance will be received by the remitter and while choosing ‘SHA’, the beneficiary will receive the amount less the intermediary/Foreign Bank fees.

Q

Can I transfer funds from my joint account ?

You may transfer funds from a joint account provided its operating instruction is either or survivor and FEMA declaration form is signed by the remitter.

Q

Can I cancel the request for outward remittance?

Any cancellation request for fund transfer will be handled by the Bank on best effort basis and with proper reason. However, if the remittance has already been processed then the remitter has the option to Recall the funds which he/she may incur charges and exchange risk.

Q

What is the limit for making an outward remittance from my NRE account?

NRE account balances are freely repatriable. There is no limit specified for outward remittances from such accounts.

Q

Can I make outward remittance from my NRO A/c?

Outward remittances from NRO a/c are permissible subject to satisfying the documentation requirements as the case may be.

Q

I have registered a mandate/holder in my NRE account. Can he make an outward remittance from the account as well?

Mandate holder in the NRE account can initiate an outward remittance, but only if the beneficiary of the remittance is the account holder himself

Q

What is the process for making an outward remittance from my NRO account?

For making an outward remittance from your NRO account, you can initiate the outward remittance by filling up Outward Remittance Application specifying the necessary details. In addition to this, you have to provide declaration about the source of the funds sought to be remitted and Form 15CA and 15CB.

Q

What is the limit for making an outward remittance from my NRO account?

Remittance from NRO account should be within the limit of USD 1,000,000 per financial year.

Q

Are there any restrictions on the frequency of the remittance?

There are no restrictions on the frequency of remittances under LRS. However, for remittances under LRS, the total amount of foreign exchange purchased from or remitted during a financial year should be within the cumulative limit of USD 2,50,000.

Q

Where can I find the application form for remittance?

Application form for remittance can be downloaded from Bank’s website. You may approach any nearest branch for application form.

Q

How can I get the Swift copy or Debit Advice?

Once the remittance is completed, a copy of SWIFT Message MT103 along with Debit Advice will be mailed to the registered e-mail id of the applicant.

Q

Can I make advance remittance for imports without having IEC?

No, IEC is mandatory for any remittance related to imports.

Q

How can I get AD code registration letter?

You may approach your linked B-Category branch.

Q

What are the supporting documents required for Advance remittance for imports (ARI)?

Supporting documents include the underlying PI/Contract and any other document as per payment terms. Supporting documents should be self attested.

FAQs on Export Transactions

Q

What are the criteria’s for allowing direct despacth of Export documents by the exporter?

Exporter should be a status holder for undertaking direct despacth of documents. Non status holder may despacth documents directly to the buyer up to 1M USD provided the AD branch should be satisfied with the transaction.

Q

Can PC be granted for Merchant Trade transactions?

No PC can be granted for Merchant Trade Transaction.

Q

Whether exporters can directly submit documents to TFBO for processing?

No. Exporter has to submit the document to their base branch or the linked ‘B’ Category branch.

Q

What all precautions needs to be taken while dealing with a Sanctioned country for Bank of Baroda to handle the documents?

Exporter should check the buyer/commodity/vessel/port of the underlying transaction against any sanctions by various Entities/Institutions before proceeding with any transaction

Q

Whether transactions with any countries has been completely barred to be handled by Bank of Baroda?

Yes, Transaction with Iran, Syria, North Korea and Cuba are completely barred and Bank of Baroda will not handle any such documents which has direct/ indirect connection with these countries.

Q

In case of payment received from third party what all documents needs to be produced for processing the payment?

Third party payment will be processed subject to conditions as prescribed in RBI Master Direction on Export of Goods and Services in A.3. (V)

Q

Whether third party payment is allowed in case of Merchant Trade Transaction?

No, In case of Merchant Trade Transaction no third party payments are allowed as per the directive of RBI

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