Fund IBKR via FX Retail (Bharat Connect) with SBI

Fund IBKR via FX Retail (Bharat Connect) with SBI

The RBI recently announced the linking of the FX Retail platform with Bharat Connect (formerly BBPS). You can read more about the announcement here.

I decided to explore this option for funding my Interactive Brokers account. I currently hold accounts with SBI, HDFC, and ICICI. Both HDFC and ICICI currently do not offer a online way to register for FX Retail, I proceeded with SBI.

How to Register

The registration process is easy and can be done via Netbanking:

1. Log in to SBI Netbanking.
2. Hover over the Payments and Transfers menu and click More.
3. Select International Fund Transfer.
4. Choose FX Retail via Bharat Connect.
5. Click on Registration and FX Rate Booking.

This will redirect you to the SBI Unipay portal. Once you fill in the required details, your FX Retail account is created instantly.

Fees and Markups

It is important to note that FX Retail allows banks to set their own markups.

• Markup: By default, SBI sets this at 20 paise per dollar.
• Transaction Fee: SBI charges a fixed fee of $10 (USD) per transaction.

Here is a transaction of $500:

• Market Rate (Google): 89.21 INR/USD
• SBI Exchange Rate: 89.4125 INR/USD (approx. 0.20 INR markup)
• Transfer Amount: $500 USD
• Bank Commission: $10 USD
• GST: ₹80.47

The transfer to IBKR was completed within approximately two hours.

HDFC and ICICI Integration

FX Retail allows for linking multiple bank accounts. HDFC and ICICI registration took approximately two working days, with HDFC adding a 1.25% markup and ICICI adding a 1.75% markup.