Indian Overseas Bank vs Kotak Mahindra Bank — Remittance Charges Compared
Side-by-side fee comparison between Indian Overseas Bank and Kotak Mahindra Bank on outward remittance from India. The verdict matrix below shows the cheaper bank at ₹50K, ₹1L, ₹5L across USD, GBP, EUR, AED, with the rupee delta.
Outward fee components
| Component | Indian Overseas Bank | Kotak Mahindra Bank |
|---|---|---|
| Commission | Outward Remittance Commission (0.075%) 0.075% of ACE (min ₹250) (max ₹4000) | Outward Remittance Commission (Online) Flat ₹500 |
| Swift Charge | Swift Payment Message Flat ₹500 | — |
| GST Commission | GST on Commission + Swift (18%) 18% on commission, swift_charge | GST on Commission + Correspondent (18%) 18% on commission, correspondent_charge |
| GST Exchange | GST on Amount Exchanged Slab by ACE; 3 bands | GST on Amount Exchanged Slab by ACE; 3 bands |
| Correspondent Charge | — | Correspondent Bank Charge Flat ₹500 |
Exchange rates side-by-side
TT Selling = rate the bank uses when you send money abroad. TT Buying = rate applied when you receive money from abroad. A tighter spread (lower %) means less hidden FX cost.
| Currency | Indian Overseas Bank | Kotak Mahindra Bank | ||||
|---|---|---|---|---|---|---|
| Sell | Buy | Spread | Sell | Buy | Spread | |
| USD | 95.4400 | 94.8700 | 0.60% | 96.9000 | 93.6400 | 3.48% |
| GBP | 128.6700 | 127.3900 | 1.00% | 130.9200 | 125.4000 | 4.40% |
| EUR | 110.4000 | 109.3000 | 1.01% | 112.2000 | 107.3400 | 4.53% |
| AED | 26.0900 | 25.7000 | 1.52% | 26.9300 | 24.9500 | 7.94% |
Verdict matrix
| Send | Currency | Indian Overseas Bank | Kotak Mahindra Bank | Winner | Saving (₹) |
|---|---|---|---|---|---|
| ₹50,000 | USD | ₹975 | ₹1,270 | Indian Overseas Bank | ₹295 |
| ₹1,00,000 | USD | ₹1,065 | ₹1,360 | Indian Overseas Bank | ₹295 |
| ₹5,00,000 | USD | ₹1,573 | ₹1,720 | Indian Overseas Bank | ₹148 |
| ₹50,000 | GBP | ₹975 | ₹1,270 | Indian Overseas Bank | ₹295 |
| ₹1,00,000 | GBP | ₹1,065 | ₹1,360 | Indian Overseas Bank | ₹295 |
| ₹5,00,000 | GBP | ₹1,573 | ₹1,720 | Indian Overseas Bank | ₹148 |
| ₹50,000 | EUR | ₹975 | ₹1,270 | Indian Overseas Bank | ₹295 |
| ₹1,00,000 | EUR | ₹1,065 | ₹1,360 | Indian Overseas Bank | ₹295 |
| ₹5,00,000 | EUR | ₹1,573 | ₹1,720 | Indian Overseas Bank | ₹148 |
| ₹50,000 | AED | ₹975 | ₹1,270 | Indian Overseas Bank | ₹295 |
| ₹1,00,000 | AED | ₹1,065 | ₹1,360 | Indian Overseas Bank | ₹295 |
| ₹5,00,000 | AED | ₹1,573 | ₹1,720 | Indian Overseas Bank | ₹148 |
Indian Overseas Bank — Things to know
Applies to:Outward remittance, retail. Advance-against-imports, FCY DD issuance, and project-import scenarios are not modelled.
- Outward commission is 0.075% with a ₹250 floor and ₹4,000 ceiling — small transfers pay disproportionately more as a percentage.↗
- Correspondent bank charges are a pass-through actual — IOB's 2025 schedule says '+ correspondent Bank Charges' on top of commission and SWIFT. Not in our total. Typical range USD 5–25 depending on the corridor; verify on your debit advice.↗
- TCS at 20% applies on general LRS remittance above ₹10 lakh per financial year (refundable as a tax credit at ITR time).
▸Show 4 more notes
Other things to know
- IOB publishes LKR rates but flags them 'for information purpose only' — Sri Lanka transfers may not be transactable at the displayed rate; verify with branch.↗
- Swift charge ₹500 is on top of the commission, and IOB's published charges are exclusive of GST (add 18% on the total).↗
- Rates are indicative and subject to market movement; the live treasury rate at debit time is what's actually applied.↗
Other ways to save
- IOB's outward commission caps at ₹4,000 — for large remittances the effective percentage is lower than at flat-fee banks.
Kotak Mahindra Bank — Things to know
Applies to:Outward remittance via Kotak NetBanking or Mobile Banking, Resident Individual, OUR charge-bearer (sender pays correspondent fees).
- Branch transactions cost ₹2,250 vs ₹1,000 online (before GST) — more than double the online price.↗
- The ₹500 Correspondent fee assumes OUR (sender pays); SHA / BEN shifts the cost to the recipient as an in-flight deduction.↗
- GST applies twice: 18% on processing + correspondent (₹180), plus a slab GST on the foreign amount exchanged (min ₹45, max ₹10,800).↗
- TCS at 20% applies on general LRS remittance above ₹10 lakh per financial year (refundable as a tax credit at ITR time).
- Use NetBanking or Mobile instead of branch — saves ₹1,250 per transfer before GST.↗
▸Show 2 more notes
Other things to know
- BHD and OMR rates are published but marked "No Txns" — Kotak may not actually transact these currencies; verify with branch.↗
Other ways to save
- Keep the default OUR charge-bearer if you want the full amount credited to the beneficiary without surprise deductions.
Try it
TRANSFER
You pay in INR; recipient receives USD.
Used to determine if this transfer crosses the ₹10L TCS threshold.
Best deal: Indian Overseas Bank. You save ₹1,807.72 vs the most expensive.
TT Selling rate from Indian Overseas Bank's published forex sheet — edit to model a quoted rate.
BREAKDOWN
Outward remittance
Amount being sent $1,000.00 × ₹95.44 | ₹95,440.00 |
| Outward Remittance Commission (0.075%) | ₹250.00 |
| Swift Payment Message | ₹500.00 |
| GST on Commission + Swift (18%) | ₹135.00 |
| GST on Amount Exchanged | ₹171.79 |
| Total charges | ₹1,056.79 |
| Total payable (INR) | ₹96,496.79 |
- Amount being sent
- ₹95,440.00
- Outward Remittance Commission (0.075%)
- ₹250.00
- Swift Payment Message
- ₹500.00
- GST on Commission + Swift (18%)
- ₹135.00
- GST on Amount Exchanged
- ₹171.79
- Total charges
- ₹1,056.79
$1,000.00 × ₹95.44
Total payable (INR)
₹96,496.79
TCS is refundable when you file your ITR — it's a tax credit, not a fee.