Bank of Maharashtra Forex Rates Explained | How to Save on Transfers

If your business receives payments from overseas clients or sends money abroad, you've probably seen that the amount credited often falls short of what you expected. The reason? Hidden margins, fees, and service charges are embedded in a bank's foreign exchange rate.

Bank of Maharashtra (BOM), like many traditional banks, uses its own foreign exchange rate for remittances and forex services, which differs from the mid-market exchange rate benchmark you see on financial platforms. 

In this article, we walk you through how Bank of Maharashtra's forex rates work, what charges you might face, and how alternatives like Xflow can help you save money and simplify cross-border transactions.

Bank of Maharashtra is a public sector bank with a strong presence in India's states, including rural and semi-urban areas. It operates forex centres in selected branches to serve customers seeking foreign currency exchange and related services. On the international side, BOM supports outward and inward remittances, export and import financing, NRI services, and treasury operations. 

It also offers an online remittance route via FX e-Connect, which lets customers initiate outward remittances digitally (Non-import transactions) from home, reducing the need to visit a branch.

When BOM quotes a foreign exchange rate (say, for USD > INR or INR > USD), that forex rate includes a number of embedded components and may exclude certain external charges. Here's what is typically incorporated:

• Spread or markup above the mid-market rate (this is the bank's margin).
• Cost of operational risk, treasury overhead, and currency volatility buffer.
• Internal handling and conversion costs.

Bank of Maharashtra publishes its TT buying and selling rates for USD, which are the rates businesses most often encounter when receiving or sending payments. However, these rates do not align with the mid-market benchmark. 

Here are the remittance (non-import and inward) fees and outward remittance charges associated with BOM’s foreign exchange services:

FX retail & platform/forex card / retail fees

For customers using BOM’s FX Retail platform or forex card (retail) services:

Bank of Maharashtra's published foreign exchange rates do not match the mid-market benchmark rates you see online. This difference arises from several factors built into the bank's pricing structure. 

• The bank includes a built-in margin or spread between its buy and sell rates. This margin helps cover transaction costs and serves as a revenue source.
• Operational overheads such as running branches, maintaining a treasury network, employing compliance teams, and supporting FX centres are factored into the rates.
• To safeguard against currency fluctuations during the day, the bank adds a risk buffer that cushions it from intraday volatility.
• Since foreign exchange services are treated as a revenue stream, profit objectives also influence the final rates that customers see.
• In many cases, the bank clearly states that charges are "inclusive of SWIFT but exclusive of correspondent bank charges." This means external charges are passed through directly to customers in addition to the stated rate.

Let's consider a business receiving USD 10,000 through BOM. We assume the mid-market USD/INR rate is ₹88.00 (benchmark). BOM's quoted forex (converted rate) is ₹87.50. 

So in this scenario:

• You lose ₹5,000 just from BOM's rate margin compared to the mid-market.
• Additional fees further reduce the net credited amount. 
• The net effective rate becomes approximately ₹86.35/USD in this case, which is much lower than both the BOM headline and mid-market.

Exchange rates move constantly throughout the day, often by several paise per dollar, which can quickly add up for businesses dealing with large transfers. Using outdated or fixed rates means you may not get the true value of your payment. Real-time forex rates allow you to capture the most accurate conversion and avoid unnecessary losses.

1. They reflect the live mid-market benchmark, not a stale or bank-adjusted figure.
2. They reduce the risk of paying extra due to hidden spreads that banks add on top of their forex rate. 
3. They help businesses time conversions better, especially when dealing with bulk invoices or recurring cross-border payments.
4. They improve forecasting and budgeting because you know exactly what INR value to expect.
5. They protect you against sudden currency swings, which can significantly impact profit margins in global transactions.

You can check Bank of Maharashtra's forex rates directly on the bank's official website under the forex section. Select the type of service, such as remittances or card transactions, to view the applicable exchange rates and fees. For specific queries or before you make any large transactions, it is best to contact your branch or relationship manager.

Bank of Maharashtra provides a full suite of forex and remittance services, from inward and outward remittances and export finance, to FX Retail, treasury, and forex centers. However, their Forex rates always incorporate margins, and although some services show NIL charges, costs are still hidden in remit fees, SWIFT pass-throughs, and conversion spreads.

For businesses receiving international payments, Xflow offers clear advantages over traditional banks like BOM. Here's what we offer: 

1. Mid-market-based rates

Unlike BOM's forex rate, which includes built-in spreads, Xflow prices transactions closer to the mid-market exchange rate benchmark. This means you avoid losing out on several paise per dollar simply due to hidden margins. 

2. Transparent fees

With Xflow, there are no layered charges such as remittance fees, commissions, or undisclosed markups. The platform displays the exact INR amount that will land in your account before you confirm the transfer. 

3. No hidden intermediary costs

Traditional banks often route payments through multiple correspondent banks, each deducting a fee. Xflow eliminates this leakage by offering local receiving accounts in 30+ currencies. Clients can pay as if it were a domestic transfer, and you get the full amount without intermediary deductions.

4. Faster settlements

Instead of waiting several business days, Xflow credits funds to your Indian account within one business day. 

5. Smart conversions with AI FX analyst

Our AI-powered FX analyst analyzes millions of market data points daily to predict USD/INR trends and suggest conversion triggers. This allows you to convert at smarter times, maximizing the return on every transfer instead of relying on guesswork.

6. Compliance streamlined

Each transaction on Xflow automatically generates eFIRA within 24 hours, removing the need for repeated follow-ups with bank managers. 

7. Scalable & flexible

Xflow has no transaction limits or tier-based hidden charges. Whether you are a freelancer, SME, or enterprise, you can process large invoices, manage multiple currencies, and scale globally without hitting operational roadblocks.

Sign up with Xflow today and start saving up to 50% on every cross-border transfer while getting your money faster, safer, and with complete transparency.