Site Title

An India-based IT and business support services exporter working with clients across
the US and Europe was receiving foreign payments regularly through a leading private
sector bank. With annual international inflows of around ₹12–15 crore across USD,
EUR, GBP, and CAD, the company assumed its banking costs were “standard.” However,
despite steady volumes, the finance team consistently noticed that the INR credited was
lower than expected, with no clear explanation from the bank.
A detailed FX and charges analysis conducted by Xchangepe revealed that the bank was
effectively charging a 2.5% FX conversion margin over interbank rates, even though this
margin was not mentioned anywhere in the credit advice or transaction statements. In
addition, USD 30 per inward was being deducted as correspondent bank charges, along
with routine handling and processing fees. All of these charges were further increased
by 18% GST, while INR credits typically came in 3–4 working days after funds were
received. With average monthly inflows of nearly USD 150,000, these hidden costs were
quietly eroding margins and delaying cash flows.
After moving its international collections to Xchangepe, the company saw an immediate
improvement in both transparency and outcomes. Payments were converted at a fixed
0.5% markup over interbank rates, with no correspondent or handling charges, and INR
credits were consistently received on a T+1 basis. For the first time, the finance team
could see the exact FX rate and charges before conversion, making reconciliation and
forecasting far simpler.
From a compliance perspective, operational friction was also removed. FIRA copies
became instantly available on the Xchangepe dashboard, eliminating the need for
repeated follow-ups with bank relationship managers. All remittance data and
documents were available in one place, making audits and reporting effortless.

Key Outcomes (Annualised):

• FX margin savings: ₹21 Lakhs
• Correspondent & handling charges eliminated: ₹3.5 Lakhs
• Handling-related costs and taxes saved: ₹1.8 Lakhs
  Total annual savings of approximately ₹26 Lakhs, along with faster settlements and far
  better visibility into FX costs.