If you’ve ever sent money to India and thought, “The rate looked great—so why did less arrive?” you’re exactly who this guide is for. In cross-border payments, it’s easy to get dazzled by a snazzy FX rate or “zero fees” banner. But what really matters is the Total Landed INR—the actual rupees that hit the Indian account after every deduction along the way.
This piece keeps things simple and practical. We’ll unpack the full fee stack (not just the FX spread), show you a clean Total Landed INR formula you can reuse, and walk through worked examples of inward remittance deductions so you can benchmark providers the right way.
The Big Idea: What Is Total Landed INR?
Total Landed INR = the final rupee amount credited in India after all fees, conversions, and bank charges.
Why this matters: you buy inputs, price contracts, and plan cash flow in INR received—not in “great rates promised.” Optimising for landed INR helps Indian SMBs, startups, finance teams, and freelancers keep more of each payment and grow with confidence.
Why FX Spread vs Fees Alone Misleads
The FX spread (exchange-rate markup) is the gap between the true mid-market rate and the rate you’re offered. If mid-market USD/INR is 83.00 and you’re quoted 81.80, that 1.20 INR difference per USD is the spread—effectively a hidden fee inside the rate.
Focusing only on this number is a trap because other inward remittance deductions can quietly eat into your payout even if the spread looks fine. That brings us to the full fee stack.
The Fee Stack That Impacts Landed INR
1. Transfer Fee vs FX Spread
- Transfer fee = explicit charge (e.g., an “outgoing wire fee”).
- FX spread = implicit charge baked into the rate.
- A “no fee” promise often pairs with a thicker spread. Always evaluate both together.
2. Intermediary Bank Charges
When money travels via SWIFT, it can hop through one or more intermediary (correspondent) banks before reaching the Indian bank. Each hop may deduct a fee—often invisible upfront and only discovered when the beneficiary receives less.
3. Correspondent Bank Fees
These are the specific tolls charged by banks that route funds to the final bank. One route might have zero tolls; another might have two. You don’t control the route—your provider does—so transparency matters.
4. SWIFT Fees in India Context
SWIFT is the messaging layer banks use to instruct and track the payment. Banks may charge a SWIFT handling fee. Some providers avoid SWIFT in certain corridors by using local payout rails—often reducing surprises.
5. Receiving Bank Charges in India
The Indian bank may charge to process or convert incoming funds, or apply its own FX rate if the conversion happens at their end. Even small deductions can move your landed INR.
6. Taxes and Regulatory Charges
Depending on where conversion happens, you might see taxes or statutory charges (e.g., GST on currency conversion services).
Bottom line: Your true cost = FX spread + explicit fees + invisible hops + receiving-side charges. The only number that captures all of this is Total Landed INR.
The Total Landed INR Formula (Step-by-Step)
Use this to estimate your net INR:
Step 1:
USD_net_for_conversion = (USD sent) – (sending transfer fees) – (known intermediary fees in USD)
Step 2:
INR_gross = (USD net for conversion) × (offered FX rate)
Step 3:
INR_landed = (INR gross) – (receiving bank fees INR) – any post conversion charges
Tip: If you can’t get a clear view of intermediary bank charges (common with SWIFT), insist on a “guaranteed INR received” quote. It pushes the provider to own the routing risk instead of you.
Worked Examples of Landed INR (Illustrative Numbers)
Assume USD 10,000 sent. Mid-market (just for reference) is ₹83.00.
| Option | Sending Fee | Intermediaries | Offered Rate (USD→INR) | Receiving Fee | Landed INR |
| A: Traditional bank | $40 | $25 total | ₹81.80 | ₹0 | ₹812,683 |
| B: “No fee” fintech | $0 | $0 | ₹81.90 | ₹0 | ₹819,000 |
| C: Low fee + strong rate | $8 | $0 | ₹82.80 | ₹0 | ₹827,338 |
What this shows:
- A slightly better rate can beat “no fees.”
- A slightly higher fee can be worth it if the rate is materially better.
- Only Total Landed INR reveals the winner.
SHA, OUR, BEN: Who Pays the Mystery Deductions?
- SHA (shared): Sender pays transfer fee; beneficiary pays deductions. Unpredictable landed INR.
- OUR: Sender pays all fees; beneficiary gets full amount. More predictable but sometimes higher upfront.
- BEN: Beneficiary pays all fees. Maximizes inward remittance deductions and usually causes the most uncertainty.
Tip: If you quote clients a fixed INR figure, prefer OUR or a provider that guarantees INR received.
How to Benchmark Providers on Landed INR
- Ask for a landed-INR quote, not just a rate.
- If they can’t give INR-received, assume unknown deductions.
- Compare apples to apples (same send amount, same day).
- Probe the route: SWIFT? Any intermediary bank charges? Where is conversion happening?
- Confirm SHA/OUR/BEN type.
- Check timing: Faster settlement may justify slightly lower INR.
- Document every quote for audits and negotiations.
Build a Landed INR Calculator (Spreadsheet Formula)
| Input | Example |
| USD_sent | 10000 |
| Sending_fee_USD | 40 |
| Intermediary_fees_USD | 25 |
| Offered_rate_INR_per_USD | 81.80 |
| Receiving_fees_INR | 0 |
Formulas:
USD_net = =A1 – A2 – A3
INR_gross = =USD_net * A4
INR_landed = =INR_gross – A5
Now you can test providers side-by-side and pick the highest landed INR.
Common Myths About Landed INR
- Myth: “No transfer fee = cheapest transfer.”
Reality: Strong rate + small fee often beats zero fee with weak rate. - Myth: “Mid-market rate isn’t achievable.”
Reality: Some providers offer near-mid rates at scale. - Myth: “Intermediary bank fees are negligible.”
Reality: They add up and erode landed INR. - Myth: “SWIFT fees in India are the same everywhere.”
Reality: They differ by corridor and bank. Always measure Total Landed INR.
Playbook for India Receivables (2025)
- Standardise on a landed-INR benchmark.
- Make INR received your KPI for cross-border payments.
- Get two live quotes for large transfers.
- Set a clear SHA/OUR/BEN policy.
- Track promised vs actual landed INR.
- Train finance teams on the Total Landed INR formula.
You don’t run your business on banners, you run it on cash that lands.
The Total Landed INR mindset gives you control: it turns confusing fee soup into one clear benchmark.
Conclusion
Inward remittance is more than just FX rates, compliance and visible fees—the real picture lies in the Total Landed INR. By factoring in hidden spreads, bank charges, and settlement delays, businesses can safeguard margins and plan accordingly. With HiWiPayExim, exporters get complete transparency and optimized returns, making every transaction truly reliable.
