Union Bank Forex Rates Explained | How to Save on Transfers

Managing cross-border payments often comes with hidden costs that eat into your margins. If your business receives funds from international clients, you may have noticed that the credited amount is lower than expected. This happens because banks like Union Bank of India apply their own forex rates and service charges, which are different from the mid-market exchange rate you see online. 

In this article, we explain Union Bank forex rates, their charges, and how you can save more on transfers with alternatives like Xflow.

Union Bank of India (UBI), one of the country’s largest public sector banks, has played a major role in supporting businesses with their international trade and remittance needs. Established in 1919, the bank has grown into a wide network with thousands of domestic branches and offices abroad, including in Hong Kong and at the GIFT City International Financial Services Centre (IFSC).

For businesses that deal with customers or suppliers overseas, Union Bank offers services such as inward remittances, outward remittances, foreign currency accounts, and forex cards. However, like with other banks, the Union Bank forex rates that apply to these services differ from the mid-market rates you see online. These rates come with built-in margins and service charges that can impact how much you actually receive or pay.

When we talk about Union Bank forex rates, we are referring to the rates at which the bank buys or sells foreign currency for its customers. These include Telegraphic Transfer (TT) buy and sell rates, bill buying and selling rates, and card (merchant) rates for small transactions. The bank publishes daily forex card rates that cover a wide range of currencies and transaction types. 

1. TT Buy/ Sell Rates 

On 25th September 2025, the published USD rates were as follows:

Union Bank applies fixed and percentage-based charges on top of its forex rates.

2. Forex card rates 

Union Bank also offers forex cards for smaller USD transactions, capped at USD 5,000 equivalent. The card rates differ slightly from TT/bill rates and carry their own fees.

The Union Bank of India forex rates rarely match the mid-market benchmark you see on platforms like Google or Reuters. This is because the bank layers multiple cost elements into its pricing.

• Built-in Spread: The difference between buy and sell rates is how the bank recovers costs and earns revenue. For USD, this can be as wide as ₹1.45 per dollar.

• Operational Overheads: Banks maintain global networks, compliance teams, and treasury operations. These costs get priced into forex spreads.

• Risk Buffer: Volatility in the USD/INR pair means banks charge a little extra to shield themselves from intraday fluctuations.

• Profit Margin: Forex services are a revenue stream, so the quoted rates are tilted in the bank’s favor.

Let’s see how the spread and charges affect an actual business transaction.

Suppose your company in India receives USD 10,000 from a US customer on 25th September 2025.

Now compare:

• At mid-market rate: ₹8,81,800
• At Union Bank effective rate: ~₹8,80,500

That’s a difference of ₹1,300 lost on just one transaction of USD 10,000. Multiply this by monthly transfers of USD 50,000-100,000, and the cost quickly scales into lakhs of rupees every year.

The forex market is highly volatile, with USD/INR moving dozens of times a day. Even a 0.5% fluctuation can alter receivables by tens of thousands of rupees on larger transfers.

• Exporters can lose out if funds are converted when the rupee strengthens unexpectedly.

• Importers end up paying more if rates shift unfavorably before their bank processes the transfer.

• Delays in conversion or relying on static daily rates mean businesses rarely capture the best possible value.

Union Bank publishes its forex card rates and TT buy/sell rates daily on the official website. These rates cover major global currencies including USD, EUR, GBP, and JPY. If you are planning high-value transfers, it’s best to request a confirmed rate from your relationship manager. Union Bank occasionally negotiates tighter spreads for large-volume corporate clients.

While Union Bank offers trusted services and a vast network, its forex rates come with built-in spreads, commission charges, and hidden deductions like correspondent bank fees. Xflow eliminates these inefficiencies for businesses.

• Transparent Pricing: Xflow links directly to mid-market rates, avoiding the 0.125% commission and wide spreads Union Bank applies.

• Receiving Accounts: Businesses get local collection accounts in USD, EUR, GBP, and 25+ other currencies. International clients can pay like a domestic transfer, removing SWIFT and intermediary bank costs.

• Faster Settlements: Funds typically settle in your Indian account within one business day, improving cash flow.

• AI-Powered FX Analyst: Predict USD/INR trends using machine learning and global market signals (oil prices, RBI liquidity moves, FPI flows). Set smart conversion targets instead of converting on instinct.

• Compliance Ready: Every withdrawal comes with an automatic eFIRA issued within 24 hours, saving you hours of paperwork.

• Secure & Reliable: Backed by JP Morgan as global banking partner and certified under ISO 27001 and SOC 2.

For Indian businesses handling frequent USD receipts, Xflow provides a way to earn more per dollar, cut out unnecessary fees, and simplify compliance. Sign up today and start using Xflow to receive international payments.