Summary: HDFC Bank Limited appears in the Reserve Bank of India’s list of authorised dealers in foreign exchange and directly executes customer remittances through its banking channels. Its RemitNow service is an online outward-remittance route for eligible HDFC Bank customers; HDFC Bank is not merely a lead generator handing the transaction to an unidentified institution. The service remains subject to FEMA, purpose-code and Liberalised Remittance Scheme controls, the customer’s declarations, bank screening, beneficiary-country restrictions and documentary review. Current official pages describe an online transaction cap of USD 50,000 or equivalent, processing cut-offs, quote-dependent foreign-exchange conversion, stated commissions, GST and revised LRS TCS rates from 1 April 2026. The product does not authorise overseas leveraged forex, CFDs or remittances for margin or margin calls to overseas exchanges or counterparties. A customer should evaluate the all-in rupee debit, foreign-currency amount expected at destination, correspondent-bank deductions, rejection and refund mechanics, and the bank’s complaint escalation route before confirming a transaction.
- HDFC Bank Limited Is the Executing Authorised Bank
- Who May Use RemitNow and for Which Purposes
- Resident individuals and the LRS envelope
- Purposes the service must not be used to fund
- KYC, Payee Data and Supporting Documents
- The All-In Cost Is More Than the Headline Commission
- TCS from 1 April 2026 and GST Treatment
- Processing, Rejection, Cancellation and Credit Timing
- Cut-off and destination credit
- When the bank may reject or reverse
- Complaint Escalation and Evidence
- Frequently Asked Questions on HDFC Bank RemitNow
- Is HDFC Bank merely an intermediary for RemitNow?
- Does the USD 250,000 LRS limit mean every online request is accepted?
- Can RemitNow fund an overseas forex or CFD margin account?
- Is the published commission the full remittance cost?
- When is TCS charged on an LRS remittance after 1 April 2026?
- What should a customer do if the beneficiary has not received funds?
- Key Takeaways
HDFC Bank Limited Is the Executing Authorised Bank
The relevant contracting institution is HDFC Bank Limited, not an unverified overseas platform and not a marketing intermediary. RBI’s public list of authorised dealers in foreign exchange includes HDFC Bank Limited. That authorisation permits the bank to deal in foreign exchange within the scope of FEMA, RBI directions and the particular transaction. It does not mean that every proposed payment, beneficiary, country, instrument or purpose must be accepted. The bank must identify the remitter, establish the permitted purpose, apply sanctions and anti-money-laundering checks, obtain declarations and supporting evidence, and reject a request that does not satisfy law or internal controls.
RemitNow is the bank’s customer-facing digital route for foreign outward remittance from an HDFC Bank account. The website also describes branch remittance and inward-remittance services, but those are not identical products. The customer selects an international beneficiary, supplies bank and SWIFT details, identifies the remittance purpose and authorises the debit. The bank supplies the foreign exchange and sends the payment through correspondent banking arrangements. A correspondent or beneficiary bank may apply its own deductions unless a full-value or sender-pays arrangement is specifically available and selected.
| Verification point | Current finding | Boundary |
|---|---|---|
| Legal entity | HDFC Bank Limited | Use the bank’s official domain and account; beware of look-alike agents |
| Regulatory status | Listed by RBI among authorised dealers in foreign exchange | Status does not pre-approve every purpose or beneficiary |
| Service reviewed | RemitNow foreign outward remittance through NetBanking/mobile banking | Branch, card, trade and inward-remittance products have separate terms |
| Online transaction ceiling | Request above USD 50,000 or equivalent is listed as a rejection circumstance | Annual LRS utilisation and product controls also apply |
| Settlement channel | Bank transfer using beneficiary bank and SWIFT details | Intermediary-bank routing and destination-country rules can affect delivery |
Who May Use RemitNow and for Which Purposes
Resident individuals and the LRS envelope
The Liberalised Remittance Scheme permits a resident individual, including a minor through the required guardian process, to remit up to USD 250,000 per financial year for permitted current-account and capital-account transactions or a combination of them. The limit is aggregate across authorised dealers and modes, not a fresh entitlement at each bank. Common permitted categories include education, medical treatment, maintenance of close relatives, gifts, travel and certain overseas investment, subject to the precise FEMA conditions and documentation. Corporate, partnership, trust and non-resident remittances follow different rules and should not be forced into an LRS declaration.
Purposes the service must not be used to fund
LRS cannot be described as a route for sending margin or margin-call money to an overseas exchange or counterparty. RBI’s LRS FAQ excludes remittance for margins or margin calls to overseas exchanges and overseas counterparties. Prohibited Schedule I purposes, sanctioned jurisdictions, lottery or sweepstakes arrangements and transactions that would violate another Indian law also remain outside the scheme. The presence of a beneficiary bank account abroad, a foreign securities broker or an overseas regulator does not convert a prohibited or unsupported payment into a permitted remittance.
KYC, Payee Data and Supporting Documents
A remitter should expect PAN, an operative HDFC Bank account, complete KYC, beneficiary name and address, beneficiary account or IBAN, beneficiary bank name and address, SWIFT/BIC and an accurate RBI purpose code. The bank can ask for invoices, admission letters, medical estimates, relationship evidence, investment documents, visa or passport material, source-of-funds records and Form A2 declarations. The specific list depends on the stated purpose and the remitter’s status. A correct purpose code is not merely an interface choice: it determines regulatory reporting, documentation and tax treatment.
For customers whose HDFC Bank account vintage is below one year, the official RemitNow page states that a 12-month statement of another existing bank account or the latest income-tax assessment order or return may need to be emailed within 24 hours. The bank says it will review the document and process by the end of the next working day; missing, insufficient or defective documents can lead to cancellation. Customers should use only the current official email or upload route displayed during the transaction and should avoid sending KYC records to an address obtained from an advertisement or unsolicited call.
The All-In Cost Is More Than the Headline Commission
| Cost component | Documented current treatment | What to verify before confirmation |
|---|---|---|
| Bank commission | ₹500 plus applicable tax up to USD 500 equivalent; ₹1,000 plus applicable tax above USD 500 | Current tariff page and transaction preview |
| FX conversion | Bank’s customer exchange rate applies and is quote-dependent | Rate timestamp, validity and INR debit compared with foreign currency delivered |
| GST | Applicable to bank charges and foreign-currency exchange valuation under prevailing GST rules | Tax invoice and the bank’s displayed calculation |
| Correspondent/beneficiary charges | May be deducted in the payment chain unless a full-value arrangement covers them | OUR/SHA/BEN or product-specific charge option and expected destination credit |
| TCS under LRS | Applied according to purpose, aggregate annual threshold, PAN status and law | Cumulative LRS use across all authorised dealers and Form 26AS/AIS credit |
The published commission is not the same as the full economic spread. The customer exchange rate contains the bank’s conversion margin relative to an interbank reference, and correspondent banks can deduct charges. A customer should therefore compare the final rupee debit with the exact foreign-currency amount expected to reach the beneficiary. HDFC Bank’s tariff page states that listed commissions, fees and charges are non-refundable unless otherwise stated. If a transaction fails, the conversion rate used for a reversal and any external bank charges can affect the rupee amount returned.
TCS from 1 April 2026 and GST Treatment
HDFC Bank’s current TCS table states that the annual LRS threshold is ₹10 lakh per PAN across all purposes, modes and authorised dealers. From 1 April 2026, education remittance funded by a qualifying education loan from a specified financial institution is shown at nil TCS. Education not covered by that loan category and medical treatment are shown at nil up to ₹10 lakh and 2% above the threshold for an operative PAN; the bank’s table shows 5% above the threshold for an inoperative PAN. Other LRS purposes are shown at nil up to ₹10 lakh and 20% above it. The applicable base is the amount over the aggregate threshold, subject to law and bank implementation.
TCS is collected tax credit, not necessarily the remitter’s final tax liability and not a fee retained as income by the bank. The remitter should reconcile the bank’s certificate with Form 26AS and the Annual Information Statement and claim credit in the appropriate return. GST is a separate indirect tax. It can apply to stated banking service charges and to the taxable value determined for foreign-currency exchange under GST valuation rules. A transaction invoice should separate the exchange, charges, GST and TCS rather than treating them as one opaque spread.
Processing, Rejection, Cancellation and Credit Timing
Cut-off and destination credit
The RemitNow page says complete requests submitted before 2:00 p.m. may be processed the same day, while later requests are processed the next working day; Saturdays, Sundays and Maharashtra bank holidays are non-working days for foreign-exchange processing. Processing by HDFC Bank is not identical to final beneficiary credit. Correspondent cut-offs, compliance screening, local holidays, repair of beneficiary details and beneficiary-bank posting can extend delivery. The bank’s broader remittance page describes delivery within 72 hours as a service indication, not an unconditional guarantee for every corridor.
When the bank may reject or reverse
Published rejection circumstances include insufficient funds, a request above the online product ceiling, exhausted LRS capacity, a non-permitted beneficiary country or beneficiary, incorrect or incomplete bank details, impermissible purpose, unsuitable own-account remittance coding and missing documents. A user should not repeatedly resubmit a rejected payment using a different purpose code. The safer response is to obtain the recorded reason, correct only genuine data errors, and ask the bank whether the intended underlying transaction is legally permissible and supported by the product.
Complaint Escalation and Evidence
The first complaint should identify the remittance reference, date, rupee debit, currency and amount, beneficiary details, purpose code, transaction status and desired resolution. Preserve the quote, confirmation, debit entry, SWIFT or payment reference, email correspondence and any refund calculation. HDFC Bank publishes a multi-level grievance process. If the issue remains unresolved through the bank’s levels, or the bank does not respond within 30 days, the customer can approach the RBI Integrated Ombudsman through the RBI Complaint Management System, subject to the Scheme’s maintainability conditions. An Ombudsman complaint should follow, not replace, a documented complaint to the bank.
Frequently Asked Questions on HDFC Bank RemitNow
Is HDFC Bank merely an intermediary for RemitNow?
No. HDFC Bank Limited is the authorised bank supplying the foreign exchange and executing the remittance through its correspondent network. External banks may participate in settlement, but the customer’s Indian authorised dealer is identified.
Does the USD 250,000 LRS limit mean every online request is accepted?
No. LRS is an annual regulatory ceiling, while RemitNow applies product limits, documentary checks, permissible-country and beneficiary controls, account eligibility and transaction-level compliance.
Can RemitNow fund an overseas forex or CFD margin account?
The service must not be used to bypass FEMA. RBI’s LRS FAQ excludes remittances for margins or margin calls to overseas exchanges or counterparties; an offshore licence does not change that Indian restriction.
Is the published commission the full remittance cost?
No. The exchange rate, GST, correspondent or beneficiary charges and TCS can materially change the all-in rupee debit or destination credit. Review the transaction preview and invoice.
When is TCS charged on an LRS remittance after 1 April 2026?
The purpose, aggregate remittance across authorised dealers, ₹10 lakh threshold, PAN status and applicable law determine TCS. Education-loan, other education/medical and other-purpose categories have different rates.
What should a customer do if the beneficiary has not received funds?
Obtain the bank’s payment or SWIFT reference, confirm beneficiary data, ask HDFC Bank to trace the payment, and retain written responses. Escalate through the bank’s grievance levels before an eligible RBI Ombudsman complaint.
Key Takeaways
- HDFC Bank Limited is the identified RBI-authorised dealer and executing institution for RemitNow transactions.
- LRS eligibility does not override purpose restrictions, sanctions screening, product ceilings or documentary review.
- The all-in cost includes the bank rate, commission, GST, possible correspondent deductions and purpose-specific TCS.
- Published processing cut-offs describe bank handling, not an unconditional final-credit guarantee.
- A defensible complaint file contains the quote, purpose declaration, transaction reference, debit, payment trace and bank responses.
*****
Disclaimer: This profile is a factual legal, banking and tax explainer based on RBI and HDFC Bank materials checked on 23 October 2026. It is not an endorsement of HDFC Bank Limited, RemitNow, any correspondent bank, destination institution or overseas investment, and it is not personalised foreign-exchange, FEMA, tax, legal or financial advice. Authorised-dealer status confirms a regulatory capacity to conduct permitted foreign-exchange business; it does not require the bank to accept every remittance or make every overseas product lawful for an Indian resident. Eligibility, purpose codes, online ceilings, documentary requirements, exchange rates, spreads, commissions, GST, TCS, correspondent charges, permitted countries, beneficiary screening, cut-off times, refund amounts and grievance contacts can change. Liberalised Remittance Scheme availability depends on residence, aggregate use across authorised dealers and the actual permitted current-account or capital-account purpose. LRS must not be represented as permitting remittances for overseas margin or margin calls, leveraged forex or CFDs. Readers should obtain a live written quote, confirm the exact foreign-currency amount expected at destination, inspect the transaction invoice, verify beneficiary data and retain purpose, KYC, tax and settlement evidence. Complex investments, gifts, maintenance, medical, education, emigration, NRO or business remittances may require advice from an authorised bank officer and appropriately qualified FEMA, tax and legal professionals. TaxGuru accepts no responsibility for exchange loss, tax collection, GST, bank or correspondent charges, rejection, delay, return of funds, sanctions screening, beneficiary error, regulatory breach or any other consequence arising from reliance on this article.
Source Links
- https://m.rbi.org.in/CommonPerson/english/scripts/banksinindia.aspx
- https://www.rbi.org.in/commonperson/english/scripts/FAQs.aspx?Id=1834
- https://www.hdfc.bank.in/remitnow
- https://www.hdfcbank.com/personal/pay/money-transfer/remittance/fees-and-charges
- https://www.hdfcbank.com/personal/useful-links/terms-and-conditions/tnc-foreign-outward-remittance
- https://www.hdfc.bank.in/cash-cheque-demand-draft/foreign-currency-cash/fees-and-charges
- https://www.hdfc.bank.in/need-help/grievance-redressal
- https://cms.rbi.org.in
