Summary : Punjab National Bank provides a foreign outward-remittance facility through internet banking and the PNB One mobile channel for eligible resident-individual customers. The bank is the executing Indian banking institution; this is not an offshore leveraged-forex platform and it does not authorise a resident to trade foreign exchange abroad. PNB’s published service material limits the digital route to specified purposes, twelve currencies and customer-level eligibility conditions. The selected account must be KYC-compliant and at least one year old, with PAN, mobile number and email recorded. The digital channel presently states a USD 10,000 equivalent single-transaction limit and USD 100,000 equivalent annual channel limit, both within the overall RBI Liberalised Remittance Scheme ceiling of USD 250,000 per financial year. Larger or other permitted requests may require branch processing and additional documents. Costs include the bank’s stated service charge, SWIFT charge, the exchange-rate conversion, possible correspondent-bank deductions, GST and applicable tax collected at source. The final exchange rate is the rate applied when the bank confirms the transaction, not necessarily the indicative screen rate. This profile explains legal identity, permitted scope, documents, process, settlement dependencies, rejection grounds, grievance routes and current tax treatment without calling PNB the cheapest or safest provider.
- Provider Identity and Authorised Banking Role
- Who Can Use the Digital Remittance Facility
- Purposes Available in the Published Online Route
- Currencies Limits and Processing Window
- Published Costs Exchange Rate GST and TCS
- KYC Documents and Submission Sequence
- Information to Reconcile Before Authorisation
- Settlement Rejections Returns and Refund Questions
- Resident Eligibility and Prohibited Forex Use
- Frequently Asked Questions
- Is PNB One an offshore forex-trading platform?
- Who may use PNB’s digital outward-remittance facility?
- What is the online single-transaction limit?
- Is the displayed exchange rate final?
- Can correspondent banks deduct charges?
- Can LRS be used for an overseas margin call?
- Is TCS an additional permanent tax cost?
- Where should a forex complaint be escalated?
- Key Takeaways
Provider Identity and Authorised Banking Role
Punjab National Bank is an Indian public-sector commercial bank constituted under the Banking Companies Acquisition and Transfer of Undertakings Act, 1970. RBI’s current authorisation framework permits Authorised Dealer Category I banks to undertake permissible current-account transactions and permitted capital-account transactions. PNB’s own forex pages identify designated authorised-dealer branches, Trade Finance Centres and the International Banking Division that process foreign-exchange business. A customer should not assume that every branch handles every transaction; the relevant digital workflow, designated branch or Trade Finance Centre must accept the purpose and documents.
The bank’s digital outward-remittance service is a customer-facing execution channel. PNB converts INR, routes the foreign currency through its correspondent network and debits the customer’s account for the remittance, charges and taxes. A beneficiary or overseas bank is not PNB’s agent merely because it receives funds. Intermediary and correspondent banks may apply their own deductions or compliance holds, so the amount credited and delivery time can differ from the remitter’s initial expectation.
| Question | Verified position |
|---|---|
| Contracting Indian service provider | Punjab National Bank |
| Regulatory capacity | Indian commercial bank acting through its authorised foreign-exchange operations and designated AD branches |
| Digital service | Foreign outward remittance through internet banking and PNB One |
| Not covered | Offshore leveraged forex, CFDs, overseas margin funding, or a promise that every purpose can be completed digitally |
Who Can Use the Digital Remittance Facility
The published digital instructions apply to resident individuals holding a single or joint PNB account and registered for the relevant internet or mobile channel. The selected account must be at least one year old and KYC-compliant. PAN, mobile number and email must be updated in the bank’s records. Minor accounts are excluded from this digital facility, even though RBI’s general LRS framework can permit a minor’s remittance through a guardian using Form A2. A minor or a customer outside the channel conditions should therefore use the appropriate branch process rather than treating the digital eligibility rules as the whole of LRS.
Purposes Available in the Published Online Route
PNB lists gift, donation, business travel, pilgrimage, medical treatment, education and maintenance of a close relative as the digitally supported purposes. The account-holder must select the correct RBI purpose code and provide accurate beneficiary information. A transaction outside these displayed purposes may still be permissible under FEMA but may require branch scrutiny, documentary evidence and a different workflow. Incorrect purpose coding can affect regulatory reporting, TCS treatment and the bank’s willingness to process the payment.
| Purpose group | Digital route note | Likely evidence focus |
|---|---|---|
| Gift or donation | Listed by PNB, subject to beneficiary and country controls | Relationship, declaration, source of funds and beneficiary details |
| Travel | Business, pilgrimage and specified travel purposes appear in the published guide | Travel purpose, itinerary or supporting payment information |
| Education or medical treatment | Listed, but tax and documentary treatment depends on facts | Institution or hospital demand, loan evidence where relevant, beneficiary bank details |
| Maintenance of close relative | Restricted to qualifying relationship and accurate purpose coding | Relationship proof and reason for periodic or one-time support |
Currencies Limits and Processing Window
The published facility supports USD, GBP, EUR, CAD, AUD, JPY, HKD, SGD, CHF, SEK, AED and NZD. A single digital remittance is capped at USD 10,000 equivalent, while the cumulative digital-channel amount is capped at USD 100,000 equivalent per financial year. These are PNB channel limits, not an expansion of the overall LRS ceiling. PNB expressly states that both remain within the USD 250,000 LRS annual limit. A customer needing another currency, a higher amount or another permissible purpose should contact a designated branch and should not split a transaction to avoid checks.
Valid orders received by 4:00 p.m. IST on a forex working day are stated to be processed the same day; later requests move to the next forex business day. Saturday, Sunday and intervening holidays are excluded. Processing is not the same as beneficiary credit. Cut-off time, sanctions screening, correspondent routing, destination-country practices and beneficiary-bank controls can extend the timeline.
Published Costs Exchange Rate GST and TCS
PNB’s digital-service guide states a service charge of ₹500 plus SWIFT charges for remittances up to ₹20,000 and ₹1,000 plus SWIFT charges for amounts above ₹20,000. It states SWIFT charges of ₹500 plus GST. These figures are the bank’s published guide values and should be confirmed on the live transaction screen or with PNB before authorisation because schedules may change. The guide also warns that foreign or correspondent banks can deduct their charges. The exchange rate displayed while the request is entered is indicative; PNB applies the final rate at transaction confirmation.
| Cost element | How it arises | Control for the remitter |
|---|---|---|
| Bank service charge | Published slab for the digital route | Confirm the current schedule and debit amount before submitting |
| Exchange-rate spread | Difference between market references and PNB’s applicable conversion rate | Use the final quoted rate, not an earlier indicative display |
| SWIFT and correspondent charges | Messaging and intermediary-bank routing | Check whether charges are added upfront or deducted from the beneficiary amount |
| GST | Applies to taxable banking/forex service value under GST valuation rules | Review the bank’s tax invoice or debit narration |
| TCS under LRS | Collected by the authorised dealer when statutory conditions apply | Track aggregate financial-year remittances and claim credit in the income-tax return |
Current Income Tax Department guidance uses an aggregate ₹10 lakh financial-year threshold for LRS TCS. Above that threshold, the standard rate is five per cent for education or medical treatment remittances and twenty per cent for other LRS purposes; education funded by a qualifying loan under section 80E is excluded under the current guidance. TCS is not the final income tax on the remittance: it is creditable subject to the taxpayer’s records and return. GST is separate from TCS. Under GST valuation rules, foreign-currency conversion services can be valued using the RBI-reference-rate method or the prescribed optional slab method chosen by the supplier for the financial year.
KYC Documents and Submission Sequence
Information to Reconcile Before Authorisation
- Confirm the remitter name, PAN, residential status, selected debit account and cumulative LRS utilisation across authorised dealers.
- Match the beneficiary name, address, account or IBAN, bank name, SWIFT or BIC and destination country with the supporting invoice or declaration.
- Select the correct purpose and code; retain Form A2, declarations, invoices, admission or medical documents and source-of-funds evidence as relevant.
- Review the final INR debit, final exchange rate, service charge, SWIFT charge, GST, TCS and any correspondent-charge instruction before confirmation.
After submission, the bank validates account balance, channel limits, beneficiary-country and beneficiary controls, FEMA permissibility and the completeness of details. Published rejection grounds include insufficient funds, exceeding channel or LRS limits, non-permitted country or beneficiary, unsupported or unauthorised transactions, incomplete beneficiary details, sending to one’s own overseas account through the restricted digital route, and overseas forex trading or margin purposes. A rejected request should be corrected through PNB; it should not be rerouted through an unverified foreign platform.
Settlement Rejections Returns and Refund Questions
A successful debit does not necessarily mean that the beneficiary bank has credited funds. The payment can pass through one or more intermediaries, each applying compliance checks and possibly charges. If beneficiary details are wrong, a bank may reject or return the transfer. The refund, if received, can be converted back at the then-applicable rate, so the INR amount may differ from the original debit. PNB’s published terms should be checked for current handling charges, and the customer should preserve the unique transaction reference, SWIFT copy if available and every communication.
For delay or non-credit, the first contact should be PNB using the transaction reference. The bank’s forex helpdesk lists Trade Finance Centres and a dedicated International Banking Division grievance email for forex operations. General complaints can be raised with the branch or online grievance system, escalated to the Principal Nodal Officer and, after the bank’s process or thirty days as applicable, taken to the RBI Integrated Ombudsman. The Ombudsman route does not replace prompt correction of wrong beneficiary information.
Resident Eligibility and Prohibited Forex Use
RBI’s LRS direction permits resident individuals to remit for permitted current or capital-account transactions within the annual ceiling. It does not permit remittances for margins or margin calls to overseas exchanges or counterparties, and PNB’s own FAQ also lists overseas forex trading among prohibited uses. The absence of a foreign platform from RBI’s Alert List is not approval. A PNB account and an LRS declaration therefore cannot be used as a pathway to offshore leveraged forex, CFDs or another transaction prohibited under FEMA.
Frequently Asked Questions
Is PNB One an offshore forex-trading platform?
No. It is Punjab National Bank’s channel for specified outward remittances. It does not authorise leveraged overseas forex or CFD trading.
Who may use PNB’s digital outward-remittance facility?
The published route is for eligible resident-individual customers with a qualifying PNB account, completed KYC, updated PAN, mobile and email, and channel registration.
What is the online single-transaction limit?
PNB’s current published digital instructions state USD 10,000 equivalent per transaction and USD 100,000 equivalent cumulatively per financial year, within the overall LRS ceiling.
Is the displayed exchange rate final?
No. PNB states that the rate shown during request entry is indicative and that the rate applied at transaction confirmation is final.
Can correspondent banks deduct charges?
Yes. Intermediary or beneficiary banks may levy charges, which can reduce the amount credited or increase the cost depending on the selected charge arrangement.
Can LRS be used for an overseas margin call?
No. RBI and PNB materials expressly prohibit remittances for overseas margins or margin calls and foreign-exchange trading abroad.
Is TCS an additional permanent tax cost?
TCS is collected at source and generally appears as tax credit. Final treatment depends on the taxpayer’s return, reconciliation and eligibility for credit.
Where should a forex complaint be escalated?
Start with PNB’s branch or grievance system and forex helpdesk, then escalate through the Principal Nodal Officer. Eligible unresolved complaints may be taken to the RBI Ombudsman.
Key Takeaways
- Punjab National Bank is the executing Indian bank for its internet-banking and PNB One outward-remittance route; it is not an intermediary for offshore leveraged forex.
- The digital service has its own eligibility, purpose, currency and channel limits within the broader RBI LRS ceiling.
- The real cost combines the final exchange rate, service and SWIFT charges, possible correspondent deductions, GST and applicable TCS.
- Customers should preserve Form A2, purpose evidence, debit records, exchange-rate confirmation, tax details and SWIFT or transaction references.
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Disclaimer: This article is a factual profile of Punjab National Bank’s published foreign outward-remittance service and the Indian regulatory and tax materials checked on 7 November 2026. Bank charges, exchange rates, supported currencies, digital-channel limits, processing cut-offs, permitted countries, beneficary controls, KYC requirements, documents, correspondent arrangements, TCS rates, GST treatment and grievance contacts may change. The article does not create a banker-customer commitment, guarantee acceptance, delivery time, beneficiary credit, refund amount or the availability of any currency or purpose. It is not foreign-exchange, investment, legal, tax or banking advice and does not endorse PNB as best, cheapest or safest. A reader must verify the live quote, charge schedule, beneficiary details, purpose code, Form A2 declarations, LRS utilisation, FEMA permissibility and applicable tax treatment directly with the bank before authorising a transfer. LRS cannot be used for overseas margin or margin-call remittances, prohibited foreign-exchange trading, CFDs or other transactions not permitted under FEMA. Correspondent and beneficiary banks may delay, reject or deduct charges, while a return can produce an INR amount different from the original debit because of exchange-rate movements and fees. Tax outcomes depend on purpose, aggregate annual remittances, funding source, residency and return reconciliation. Readers should consult PNB and qualified legal, tax and FEMA professionals for their own facts. TaxGuru accepts no responsibility for any loss, failed or delayed remittance, beneficiary shortfall, exchange-rate difference, tax collection, denied credit, penalty, compliance breach or decision based on this article.
