What the bank does not print

The collection at source is published to the rupee, but the margin a bank adds to the exchange rate it gives is not published at all. A reader can compute one and cannot compute the other, and the difference is a cost that nobody prints.

One cost is published

The collection at source is published to the rupee, and the rule is in the Finance Act. A reader can compute the collection on any amount, and the table on this site does that arithmetic at a live rate.

The collection is not hidden; it is stated in the law and the bank must show it on the advice. A reader can see exactly how much is collected before the transfer leaves.

One cost is not

The margin a bank adds to the exchange rate it gives is not published by any of them. The bank gives a rate that includes its margin, but the margin itself is not printed, and the reader cannot compute it from the advice alone.

The margin is the difference between the rate the bank gives and the market rate at that hour. A reader who wants to know the margin must compare the two rates, and the comparison is not always possible.

How to see the margin

A reader can see the margin by comparing the rate on the advice against the market rate at that hour. The market rate is available from independent sources, and the difference is the bank's margin plus any other costs.

The comparison is not exact, because the market rate moves and the bank's rate is fixed for the transfer. But a large difference is a sign that the margin is large, and the reader can ask the bank to explain it.

This site does not estimate it

This site does not estimate the margin, because an estimate would be a number invented by this desk. The table carries only what the rule states and what the two rate sources agree on, and the unpublished margin is a fact of the market.

A reader who wants the margin must ask the bank before the transfer. The bank may not give a straight answer, but the question is worth asking, because the margin is a real cost and it is not published.

The silence is a fact

The silence on the margin is a fact, not an omission on this site's part. No bank publishes its margin, and no regulator requires it. A reader who compares banks may find that the rates differ, but the difference is not the margin alone.

The reader should compare the total cost of the transfer: the collection, the margin, and any other fees. The collection is published; the margin is not; and the reader should not confuse the two.

What a reader should ask

A reader should ask the bank for the exchange rate it will actually give, and for the amount in rupees that will be debited and the amount in dollars that will be credited. The difference between the two is the total cost, including the margin.

The bank may not itemise the margin, but the reader can compare the rate against the market rate at that hour. The comparison is the only way to see the margin, because the bank will not print it.