Introduction
City Union Bank (CUB) is India's reliable bank for foreign currency exchange and international money transfers. But most times, City Union Bank's exchange rates are usually not the same as the market rate. This means that you could be sending or receiving less than you expected.
In this blog, we explain City Union Bank forex rates, charges, why their rates are different from mid-market rates, and some tips to cut costs on your transfers.
Understanding City Union Bank forex services
City Union Bank provides a range of foreign exchange services tailored to meet the needs of freelancers, businesses, and exporters. These are:
Telegraphic Transfer (TT) charges
Telegraphic Transfer is a process of electronically transferring funds from one bank to another. City Union Bank exchange rates are different for TT buying and selling:
- TT buying rate: It is the rate at which the bank purchases foreign currency from you. For example, if you are receiving money from overseas, the bank exchanges it into INR at this rate.
- TT selling rate: It is the rate at which the bank sells foreign currency to you. If you are sending money overseas, the bank exchanges your INR for the foreign currency at this rate.
FX-Retail charges
FX-Retail is an electronic trading platform introduced by the Reserve Bank of India (RBI) with the Clearing Corporation of India Ltd. (CCIL) and made available by participating banks like City Union Bank. This platform allows customers to place orders for USD/INR currency pairs on a cash, tom, spot, or forward basis.
Key features:
- Transaction size: You can make transactions up to USD 5 million per order.
- Transaction types: It's only for USD/INR currency pairs.
- Access: Customers can access the platform through the website (https://www.fxretail.co.in)
Cards & cross-currency services
Making international transactions using your debit card or paying in foreign currency is easy with CUB. The bank takes care of all currency conversion, links to overseas payment networks, and facilitates smooth transactions at ATMs, POS machines, and online retailers. Even if the transaction fails, CUB processes it seamlessly to keep your account safe.
Export & import services
For foreign trade business, CUB offers dedicated assistance like:
- Administering advance remittances and collections of bills
- Servicing Letters of Credit (LCs), their amendments, and transfers
- Making payments overseas and receiving export proceeds
Other forex services
CUB also presents extra solutions for more advanced forex requirements:
- Servicing foreign currency checks
- Setting up forward contracts to protect against currency fluctuations
- Exchanging various foreign currencies
- Issuing certificates, opinions, or duplicates concerning forex transactions
City Union Bank forex charges (TT, FX-Retail, Remittance)
Now that we know the types of forex services that City Union Bank offers, here’s a detailed breakdown of their specific remittances and charges:
1. Telegraphic Transfer (TT) charges
TT is the bank's way of sending or receiving money electronically across borders. Depending on the type of transaction, the fees are:
| Transaction type | Charges/Fees |
|---|---|
| Outward remittances (other than imports) | 0.30% of transaction, min INR 750, max INR 50,000 + SWIFT INR 1,000 |
| Outward remittances - Overseas direct investments | 0.30%, min INR 5,000, max INR 50,000 |
| Foreign Direct Investments (FDI) | 0.30%, min INR 5,000, max INR 10,000 |
| Other inward remittances | Up to INR 5 lakh: INR 500 INR 5–10 lakh: INR 1,000 Above INR 10 lakh: INR 1,500 |
| Merchandise trade (Inward/Outward) | 0.30%, min INR 2,000, max INR 25,000 + SWIFT INR 1,000 |
| FCY check collection | 0.50%, min INR 1,000 + postage & overseas bank charges |
2. FX-retail platform charges
The FX-Retail platform lets entrepreneurs and businesses trade foreign currency online. Here's what it costs:
| Service | Charges/Fees |
|---|---|
| Registration - Individuals | INR 300 |
| Registration - Non-individuals | INR 1,000 |
| Transaction up to USD 50,000/day | No charge |
| Transaction above USD 50,000/day | 0.0004% of transaction value in INR + GST |
3. Cross-currency & card charges
Using your debit card abroad or making cross-currency payments comes with a few fees:
| Service | Charges/Fees |
|---|---|
| Cross-currency markup (Debit Cards) | 3.50% + applicable taxes |
| ATM/POS/E-commerce abroad | INR 150 + 3.50% markup + applicable taxes per transaction |
| Balance enquiry at foreign ATMs | INR 25 + applicable taxes per transaction |
| Decline charge (Insufficient balance) | INR 25 + applicable taxes per transaction |
4. Export & import related charges
If you're a business involved in international trade, CUB charges specific fees for exports, imports, and letters of credit:
| Service | Charges/Fees |
|---|---|
| Export - advance remittance/Bill collection/Discount/Negotiation | 0.15%, min INR 1,000, max INR 10,000 |
| Export - advance remittance via other bank | < 1 year: INR 1,000 >1 year: INR 2,500 |
| Advising Letter of Credit (LC) | Customer: INR 1,500 per LC Non-Customer: INR 2,000 per LC |
| Amendment to LC | Customer: INR 750 Non-Customer: INR 1,000 |
| Transfer of LC | INR 2,000 per transfer |
| Issuance of eFIRC | INR 200 per certificate |
| Overdue export bills (>9 months) | INR 500 per quarter per bill |
| Import LC issuance - Sight / Usance | 0.65% – 1.30% depending on validity & usance, min INR 5,000 + SWIFT INR 2,000 |
| Amendment/Extension of LC | INR 1,000 flat + SWIFT INR 1,000 |
| Import advance/Direct remittance | INR 1,200 flat + SWIFT INR 1,000 |
| Import collection bills (Non-LC) | 0.35%, min INR 1,500, max INR 50,000 |
5. Other forex services
CUB also provides other forex services, such as foreign currency checks, forward contracts, and currency exchange. Charges include:
| Service | Charges / Fees |
|---|---|
| FCY check/FDD issue | INR 1,500 per instrument |
| FCY check cancellation/Stop payment | INR 500 per check / FDD |
| Forward contract booking | INR 750 |
| Forward contract cancellation | INR 500 |
| Exchange between foreign currencies | 1%, min INR 100 per transaction |
| Queries/Opinion/Certificate/Duplicate FIRC/BRC | INR 100 - INR 500 depending on type |
Here’s a look at the foreign exchange rates of CUB:
| Currency | Telegraph transfer Buying | Telegraph transfer Selling | Bills Buying | Bills Selling | Travel card Buying | Travel card Selling | Currency Buying | Currency Selling |
|---|---|---|---|---|---|---|---|---|
| AED | 23.65 | 24.65 | 23.65 | 24.65 | - | - | - | - |
| AUD | 56.85 | 59.15 | 56.85 | 59.15 | - | - | - | - |
| CAD | 62.35 | 64.90 | 62.35 | 64.90 | - | - | - | - |
| EUR | 101.50 | 105.60 | 101.50 | 105.60 | - | - | 100.95 | 106.15 |
| GBP | 116.05 | 120.75 | 116.05 | 120.75 | - | - | 115.45 | 121.35 |
| JPY * | 58.05 | 60.40 | 58.05 | 60.40 | - | - | 57.75 | 60.70 |
| SGD | 67.25 | 69.95 | 67.25 | 69.95 | - | - | - | - |
| USD | 86.90 | 90.45 | 86.90 | 90.45 | 86.45 | 90.90 | 86.45 | 90.90 |
Why CUB’s rates differ from market rates
Noticed a difference between the mid-market exchange rate benchmark and the City Union Bank forex rate? Here's why:
- Bank markup: A small margin is added to cover costs and ensure profitability.
- Transaction & operational charges: Staff management, compliance verification, and branch maintenance are all covered in the rate.
- Currency availability: Limited availability or excess demand can cause rate changes.
- Currency fluctuations: City Union Bank exchange rates are hedged to shield against unwarranted market fluctuations.
- Compliance & taxes: Legal and tax compliance is incorporated into the rate for RBI norms and GST.
Effective rate example
Imagine you're sending USD 2,000 abroad through City Union Bank:
Using the mid-market rate:
1 USD = INR 88. You’d expect to pay: INR 176,000
Using CUB's USD - INR TT selling rate:
1 USD = INR 90. Bank converts your INR to INR 180,000
Adding transaction fees:
SWIFT or service charges = INR 1000
Total cost: INR 181,000
So, although the mid-market exchange rate benchmark indicates INR 176,000, what you actually pay is INR 181,000 when the bank's markup and fee are factored in.
Let's consider that you're receiving USD 2,000:
Mid-market rate: 1 USD = INR 88. You'd expect: INR 176,000
CUB USD - INR TT Buying Rate: 1 USD = INR 86. Actual INR received: INR 172,000
This "effective rate" indicates the actual amount paid or received after markups and fees.
Why real-time forex rates are important
Tracking live forex rates assists you in saving money and making wiser choices:
1. Optimize value: Trade when rates are optimal for higher returns.
2. Avoid surprises: Rates can change daily; stay updated to prevent losses.
3. Plan smarter: Select optimal times for tuition, imports, or remittances.
4. Hedge volatility: Move fast under sudden currency fluctuations.
5. Compare smarter: Compare rates between banks and platforms to find the best offer.
How to check City Union Bank forex rates
To know the exact City Union Bank exchange rate before a transfer or exchange:
1. Visit a branch: Obtain the latest TT, FX-Retail, and remittance rates.
2. Check online: Go to the 'Forex' or 'International Services' page on CUB's website to check TT, FX-Retail, and remittance rates.
3. Contact customer care: Talk to agents for current rates, fees, and transaction information.
4. FX-Retail platform: You can view real-time rates for USD/INR, order spot, tom, or forward orders, and monitor rates before transfer.
Why Xflow is better than City Union Bank for forex rates
While CUB offers reliable forex services, Xflow provides added advantages for businesses:
1. Real-time rates, zero markup: Clear rates upfront, no surprise charges.
2. Quicker settlements: INR funds credited within one day, better cash flow with free one-click e-FIRA.
3. No transaction limits: Send or receive any amount with zero markup fee.
4. Broad currency support: More than 25 currencies from 140+ countries for easy global payments.
5. AI insights: Track forex trends and maximize conversions using AI-based tools.
Conclusion
City Union Bank offers reliable forex services, but hidden markups can reduce your value. For faster, transparent international payments, Xflow provides real-time rates, zero fees, next-day INR settlements, and AI-powered insights.
Frequently asked questions
The cheapest way to convert currency is usually through online forex platforms like Xflow. With Xflow, you get rates closest to the market without the extra bank markups.
The Kuwaiti Dinar (KWD) is currently the strongest currency in the world.
Citibank rates fluctuate every day, depending on the mid-market rate plus their margin. The most convenient way to get the latest rate is to search online or drop by a branch.
