ICICI Forex Rates Explained | How to Save on Transfers

If your business deals with international clients, you’ve probably noticed that the money you expect from overseas payments often comes in lower than you estimated. This is because ICICI Bank's forex rates include hidden spreads and fees for services like remittances and forex cards. To plan your receivables better, you need to understand exactly how these charges work and when they apply. 

This article walks you through ICICI Bank's forex rates and charge structure, explains why real-time rates matter, and compares bank costs vs fintech alternatives like Xflow.

When we talk about ICICI Bank forex rates, we’re referring to the exchange rates the bank offers its customers for converting one currency into another. These rates apply whether you’re receiving international payments, sending money abroad, or using an ICICI forex card.

ICICI publishes its forex rates daily on its website. You’ll typically find three sets of rates:

1. TT (Telegraphic Transfer) rates for remittances.
2. Forex card rates for transactions done through ICICI’s prepaid or multi-currency cards.
3. Note rates for buying or selling physical foreign currency.

These almost never match the mid-market exchange rate you see on Google or financial sites. That’s because banks like ICICI add a margin, or spread, on top of the real market rate. This markup is where costs are hidden, and it means you end up getting less than what you would at the true mid-market rate.

Let’s now look at the ICICI exchange rate and charges for its primary services, Money2India and its forex cards. 

1. Money2India (Inward remittances) 

Money2India is ICICI’s service that allows you to receive payments from clients abroad. When using it, any transaction above USD 1,000 often comes with a zero service fee. 

• For transfers below USD 1,000, a flat fee of USD 4 applies.
• For larger transfers, while there may not be a transfer fee, ICICI applies an exchange rate margin. This means the rate you get is lower than the mid-market rate.
• In some cases, intermediary banks deduct their own charges before the money reaches your account, reducing your receivable even further.

2. Forex cards

ICICI also offers multi-currency forex cards, which are handy for travel and international business expenses. These are the associated charges: 

• Issuance fee: Between ₹499 and ₹1,999, depending on the type of card.
• Reload fee: Around ₹75 each time you top up the card.
• ATM withdrawal fee: Fixed charges such as $2 in the US or £1.25 in the UK.

Cross-currency fee: A hefty 3.5% + GST if you spend in a currency not preloaded on the card.

Foreign exchange markets move constantly, and even small changes can impact the money your business receives or spends. If the ICICI forex rates you see on the website aren’t updated in real time, the actual rate applied at the moment of transfer may be weaker. For large remittances or forex card spends, a difference of just 0.5% can mean thousands lost.

Like most banks, ICICI adds a markup to cover operational costs and profit. This margin makes ICICI forex rates lower than the mid-market rate when receiving money and higher when sending funds abroad. For businesses, this directly impacts profitability and increases transaction costs.

Effective Rate Example

Let’s say your client sends you USD 1,000 through Money2India. The mid-market rate at the time is ₹87.80 per USD, so ideally you should receive ₹87,800. 

ICICI’s published rate, however, may be around ₹87.46 per USD, which means only ₹87,460 is credited.

On top of this, transfers under USD 1,000 carry a flat USD 4 fee, and in some cases, intermediary banks deduct their own charges. By the time the money reaches your account, you might end up with closer to ₹87,100. 

You can check the latest ICICI exchange rate on the bank’s official website. The Money2India page shows updated remittance rates, while the Global Markets Forex Card Rate page lists TT, card, and notes rates. For forex card charges, ICICI publishes a detailed schedule of fees. 

If you don’t see the latest rates online or if you’re making a large transfer, it’s best to confirm directly with your ICICI branch. 

While ICICI Bank offers established forex services, its spreads, fees, and hidden charges can make cross-border transactions costly. Xflow takes a very different approach and focuses on transparency and speed.

With FX AI Analyst, Xflow helps you track currency trends using real-time data and AI-driven analysis. Instead of converting your funds at whatever rate the bank offers, you can set target exchange rates and get alerts when the market moves in your favor. 

Xflow also provides Receiving Accounts in over 30 currencies, which allow your clients abroad to pay you through local bank transfers. This setup eliminates intermediary bank deductions, reduces transaction costs, and speeds up settlement so you can withdraw funds to your Indian account within one business day. Each withdrawal also comes with a free eFIRA, ensuring compliance without extra effort.

Together, these features make Xflow a more cost-effective, predictable, and convenient alternative to relying solely on ICICI forex rates or forex cards. You get rates much closer to the mid-market benchmark, avoid unnecessary deductions, and improve cash flow management.

ICICI Bank is a trusted provider of forex services, but you should be aware of the hidden spreads, transfer fees, and card charges that reduce the actual value of receivables. Xflow offers a smarter alternative. With tools like FX AI Analyst and Receiving Accounts, you get complete transparency, faster settlements, and rates closer to the mid-market benchmark. 

Start saving on every transfer, sign up with Xflow today and take control of your forex costs.