Punjab National Bank Forex Rates Explained | How to Save on Transfers

When you’re sending money abroad or receiving payments from overseas, the first question that comes to mind is: “How much is the rate?”

Punjab National Bank (PNB), being one of India’s oldest and most trusted public sector banks, handles thousands of foreign exchange transactions daily. However, markups, service charges, and handling fees quietly eat into your money. That’s where understanding PNB forex rates becomes important.

Read on to learn about Punjab National Bank’s forex rates, what you pay for, why rates are not as reasonable as the market, and most importantly, how you can save on transfers by comparing options.

Punjab National Bank’s forex rates vary based on the nature of the transaction. PNB provides daily updated rates for most international currencies, including USD, GBP, EUR, JPY, AUD, and CAD.

The three most common rates are the TT buy/sell rates and the card rate:

Apart from the margin on the exchange rate, PNB charges various fees based on the nature of the service.

1. Inward remittances

While accepting money from abroad by wire transfer/demand draft/personal check/money transfer, PNB exchange rate remittance charges include:

• Exchange rate: The bank converts the foreign currency into INR at the current TT buy rate, which is slightly lower than the mid-market rate due to the bank’s margin.

• Transfer fee: INR 500 - 1,000 per transaction, depending on the amount and mode of transfer.

• For amounts up to INR 100,000: Minimum charge is INR 150.

• For amounts above INR 100,000: A charge of 0.15% of the amount is applied. However, the minimum charge is INR 500.

• GST: 18% on the service charges, which adds to the overall cost.

• Additional costs: This may include costs like FIRC (Foreign Inward Remittance Certificate), courier/post charges, and a commission unless the funds are being sent to an NRE account.

2. Outward remittances

On outward remittances, PNB charges:

• Service fee: 0.125%. INR 500 on amounts up to INR 20,000. INR 1000 on amounts above INR 20,000. 

• SWIFT charges: INR 500 depending on the transfer mode and country.

• Exchange margin: 3% exchange rate markup. This means you’ll pay more than the actual market rate. 

• GST: 18% on service fees. 

In other words, the outward remittance SWIFT fee is INR 500 + GST. 

3. Forex card fees

The bank’s World Travel Card is convenient for overseas travel or short-term foreign expenses, but it comes with certain PNB forex card rates:

• Issuance: INR 100 - 300 per instance, whenever you add money to the card.

• Replacement fee: INR 100 if delivery is in India. USD 20 if delivery is abroad.

• ATM withdrawal fee: USD/GBP/EUR 1.50 plus taxes per transaction.

• ATM balance enquiry: USD/GBP/EUR 0.50 plus taxes per transaction.

• Refund/Surrender of balance: INR 100 plus taxes.

• World Travel Card markup: 2% of the transaction amount plus taxes

Real-time forex rates can either break or make the worth of your transfer. The real-time rates, or mid-market rates, are the basis on which banks exchange currencies with each other. 

Customers like you, however, are offered a retail rate, which includes the bank’s markup (spread) for providing the service.

For small transfers, this difference may not be noticeable. But for large tickets, the losses soon amount to thousands of rupees.

Real-time rates also change throughout the day with global currency movements. A lag of a few hours might change your expenses, particularly if markets are volatile in response to economic announcements or geopolitical surprises.

Verifying PNB exchange rates before you transfer money or receive it saves you from surprises, enables you to plan ahead, and ensures more of your cash reaches its destination.

This is a question almost everyone asks: “Why don’t I get the rate I see online?”

Here’s why:

1. Bank markup (Spread)

PNB charges a minor percentage, usually about 3%, above the mid-market rate. This guards the bank against rapid movement of currencies and assists in financing its own profit margin.

2. Operational costs

The bank pays for branch processing, SWIFT network fees, compliance verification, documentation, and other administrative tasks. Everything goes into the Punjab National Bank’s forex rates you receive.

3. Client category

High-net-worth, corporate, and NRI clients tend to receive a slightly better rate than standard retail customers.

4. Cash vs. electronic transactions

Physical cash carries more risk, requires more security, and involves more logistics. This means a greater markup on cash transactions. Digital transfers such as wire remittances tend to have less margin.

You’re receiving USD 10,000 from the US into your PNB account.

• Mid-market rate: INR 88/USD
• Expected amount: INR 8,80,000

• PNB TT buy rate: INR 86/USD
• Amount credited: INR 8,60,000

• Difference: INR 20,000 lost in conversion

Now add:

• Inward remittance fee: INR 1,000

• GST on fee: INR 180

Final effective amount: INR 8,58,820

You lost INR 21,180 compared to the mid-market exchange rate benchmark.

PNB updates its forex rates daily, but you need to know where to look:

1. PNB exchange calculator

You can convert only GBP to INR through PNB’s website portal. 

2. Customer care/Relationship manager

For corporates or high-value transactions, relationship managers can provide negotiated rates.

You’ve already seen how much you lose with PNB’s TT buy rate and fees. 

1. Mid-market rate: INR 88/USD 
2. Expected amount: INR 8,80,000

Let’s talk about the same transfer with Xflow (fintech alternative):

• Xflow rate (zero markup): INR 88/USD 
• Amount credited before fees: INR 8,80,000
• Flat 1% fee: INR 8,800
• Final effective amount: INR 8,71,200

Compared to PNB’s final amount of INR 8,58,820, using Xflow means you save INR 12,380 on the same transfer.

What’s more? With Xflow, you get:

• Zero markup on exchange rates: You get closer to the mid-market exchange rate benchmark.
• Flat 1% fee: Transparent and predictable, no hidden charges or GST surprises.
• FX AI Analyst: Helps you track USD/INR fluctuations, set target rates, and convert at the optimal time.
• Fast settlement: Funds reach your account in as little as 24 hours, avoiding losses due to rate changes while waiting.
• Instant eFIRA: One-click documentation ensures no delays in receiving or using funds.
• Multi-currency support: Simplifies receiving foreign earnings in 25+ currencies from 140+ countries, without extra conversions or hidden spreads.

With PNB, hidden spreads, fees, and slower settlements can reduce your payout. Xflow, on the other hand, offers zero-markup rates, a flat 1% fee, fast settlement, and multi-currency support.

What sets Xflow apart is its AI-powered FX Analyst, India’s first tool that tracks USD/INR movements, analyzes hundreds of indicators, and helps you set data-backed conversion targets, so you know the right time to convert your funds for maximum profit.

Next time you’re planning a transfer, don’t just ask “How much is the rate?”, ask “How much will I actually get in my account?”

And when you do, sign up with Xflow and experience the difference.