South Indian Bank Forex Rates Explained | How to Save on Transfers

Managing international payments can be complex when you’re running a business in India. Exchange rates, service fees, and hidden costs often make it difficult to know exactly how much money you will receive or pay. 

South Indian Bank (SIB) publishes daily forex rates and offers multiple services such as remittances, forex cards, and currency exchange. However, these rates often differ from the mid-market benchmark you see online, leading to smaller credits than expected when receiving overseas funds.

In this article, we explain how South Indian Bank forex rates work, the charges businesses should be aware of, why rates differ from the market average, and how alternatives like Xflow can help reduce costs while offering real-time visibility.

South Indian Bank, established in 1929 and headquartered in Thrissur, Kerala, is one of the oldest private sector banks in India. It has a strong presence across South India, operating over 900 branches. 

The bank offers a wide suite of international banking services including inward and outward remittances, trade, finance, foreign currency demand drafts, and forex cards for travelers and corporates.

Like other banks, SIB publishes daily forex card rates for different services. These include:

• TT Buying / TT Selling: For electronic inward or outward transfers (Telegraphic Transfers).
• Bill Buying / Bill Selling: For export/import bills.
• Traveler’s Cheques (T.C.): Buying and selling rates for cheques.
• Currency Notes: Rates for buying and selling physical foreign currency.

The rates differ depending on whether you are sending money abroad, receiving foreign payments, or exchanging cash. These are the rates as on Sep 29th, 2025:

Forex transactions involve not just the published rates but also additional fees. With South Indian Bank, these charges vary by platform and service.

FX-Retail platform

SIB participates in RBI’s FX-Retail system, which allows businesses to book real-time forex deals online. However, tiered markups are applied based on transaction size. Smaller transfers attract higher margins compared to larger volumes.

Remittance fees

For international outward remittances, fees generally include:

• SWIFT Charges: Paid to transmit the payment message.
• Correspondent Bank Charges: Additional deductions applied by intermediary banks.
• SIB Service Fees: A fixed or percentage-based charge per remittance.

If you compare South Indian Bank forex rates today with the mid-market benchmark you see online, you’ll notice a consistent gap. This difference reflects the way banks structure their pricing to cover costs and manage risks.

• Exchange Margin (Spread): SIB, like other banks, adds a spread between its buy and sell rates. This ensures revenue from every transaction, whether inward or outward.
• Operational Overheads: Costs of running branches, compliance checks, and maintaining forex centres are built into customer rates.
• Currency Risk Buffer: Banks factor in volatility by setting rates slightly away from the mid-market level to protect themselves against sudden swings.
• Channel-Related Costs: Outward remittances via SWIFT and inward transfers routed through correspondent banks often involve additional charges that influence final rates.
• Profit Objective: Forex is a revenue stream, so the difference between published rates and market rates also reflects the bank’s profitability goals.

Let’s consider an exporter receiving a $1,000 payment.

Mid-Market USD-INR Rate: ₹88.00

South Indian Bank TT Buying Rate: ₹87.20

Amount received = $1,000 × ₹87.20 = ₹87,200

Amount expected at mid-market = $1,000 × ₹88.00 = ₹88,000

Difference (loss due to spread) = ₹800

If SWIFT and correspondent bank charges of ₹1,200 are also applied, the net credited amount reduces further to ₹86,000, nearly ₹2,000 less than the benchmark.

Foreign exchange markets move every second. Businesses relying on outdated or indicative rates risk receiving less than expected when deals are executed. Real-time visibility helps you:

• Lock in more competitive rates when markets move favorably.
• Reduce uncertainty in cash flow planning by knowing the true INR value upfront.
• Compare bank card rates with mid-market benchmarks before executing.
• Improve profitability by avoiding unnecessary losses on conversions.

South Indian Bank publishes daily forex card rates on its official forex rate page. To check, simply select the relevant service. For high-value deals, you can contact your branch manager or treasury desk for negotiated rates.

One of the main concerns businesses face with South Indian Bank forex rates is inconsistency. On top of that, the FX-Retail platform applies tiered mark-ups, and remittance channels like SWIFT or correspondent banks may add costs outside the bank’s control. This means the INR amount you finally receive is often lower than expected and rarely matches the mid-market benchmark.

Xflow provides a streamlined alternative built for businesses receiving international payments. Instead of juggling multiple bank rates and hidden spreads, you get transparent pricing linked directly to the mid-market exchange rate.

• Mid-market based pricing: Xflow connects your conversions to true benchmark rates, removing inflated spreads.
• Transparent fees: You see the exact INR amount before the transaction. There are no hidden deductions or surprise costs.
• Faster settlements: Funds typically arrive in your Indian account within one business day, unlike slower bank remittances.
• AI FX Analyst: Xflow helps you decide when to convert, using real-time predictive insights to improve returns.
• No transaction limits: Whether you are a freelancer or an enterprise, you can collect large international payments without being forced to split invoices.
• Regulatory compliance: Automated eFIRA issuance ensures smooth reconciliation with zero manual chasing.

If your business depends on cross-border receivables, switching to Xflow can save costs and reduce uncertainty. Sign up with Xflow today to start receiving smarter, faster, and more transparent international payments.