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SBI vs Indian Overseas Bank Forex Rates: Which Is Better for Exporters in 2026?

Both banks publish a card rate, and neither one is what lands in your account. See the real rate each bank applied to exporter transfers, side by side, and what the same invoice is worth on Skydo.
Fetching the live FX rate
Amount billed$10,000.00
USD
—INR
Transfer ViaExchange rateConverted amount
State Bank of India (SBI)INR 84.1500INR 8,38,780.63You lose: 1.3% ↓
Indian Overseas Bank (IOB)INR 83.7675INR 8,35,082.23You lose: 1.8% ↓
SkydoINR 85.0000Live Mid Market RateINR 8,47,091.30
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SBI vs Indian Overseas: understanding the key differences for exporters

While both SBI and Indian Overseas let Indian exporters receive international payments, they differ in the rate applied, the fees taken before the money lands, how you get your FIRA, and how much room you have to negotiate. Here is how they compare side by side.
FeaturesState Bank of India (SBI)Indian Overseas Bank (IOB)
Forex markupThe gap to the mid-market rate can start from around 1% and varies by account type and your relationship with the bank.Often quoted around 1.45% below mid and reportedly Rs 0.50 to Rs 1 higher on the USD TT buying rate than private banks
Transfer and processing feesSWIFT fees plus a processing fee depending on business type, typically around Rs. 500 per remittanceReported at around Rs 500 plus GST as a service fee with fixed SWIFT charges, and one exporter reported the total fee on a 100,000 USD inward remittance was just Rs 3,000. Correspondent banks may still deduct roughly $15-30 in transit
How you settle the remittanceHandled through yono Business (eTrade and eForex) or at a branch. Your current account must first be enabled for inward remittanceShare the IOB SWIFT code and account details with your buyer and include the purpose code in the SWIFT message.
Time to credit after you submitEnd to end, an inward export payment usually takes 2 to 5 business daysFunds typically clear within 24 to 48 hours once the FEMA declaration and purpose code are in order
FIRA and e-FIRCSBI reports e-FIRC to EDPMS. It costs Rs. 200 for usage, can vary according to account typee-FIRC issued to EDPMS on request per transaction
Currencies you can receive inmajor currencies processed directly, and all other currencies routed through correspondent banksMajor trade currencies through the SWIFT network. IOB also has Gulf and exchange house tie-ups for remittance corridors.
Compliance trackingDocuments can be uploaded via the eForex portal on yono Business, with SMS/email status alerts; SBI reports realisation to EDPMS.Handled through your forex-authorized branch or by email to the forex cell.
Best suited forBest for existing SBI exporters with an export credit facility and for marginal currencies as it has a wide networkExporters and freelancers who prioritise the best inward rate and low predictable charges

SBI vs Indian Overseas Bank exchange rates, fees and hidden charges

Three things decide what actually reaches your account: the markup buried in the rate, the fees taken before the money lands, and the charges that only appear on your statement afterwards.
State Bank of India (SBI)State Bank of India (SBI) card:
  • Measured from actual FIRAs, the markup starts at around 1% and varies by account type and your relationship with the bank
  • SBI updates rates through the day, and the rate applied is usually the one at the time funds are credited
  • Exporters with an export credit facility tend to get better treatment on rates
  • SBI applies its USD TT buying rate to inward wires
Indian Overseas Bank (IOB)Indian Overseas Bank (IOB) card:
  • IOB converts inward payments at its TT buying rate, which sits below the live mid-market rate but is among the tighter margins of any Indian bank, often quoted around 1.45% below mid and reportedly Rs 0.50 to Rs 1 better on USD than private banks
  • The published rate is indicative. The rate actually applied appears on your FIRA
  • Even at IOB's tighter margin the spread still costs real money. On a $10,000 credit a 1.45% margin is roughly Rs 13,000 versus the mid-market rate
  • A better rate is negotiable on higher volume.

Keep ₹12,009 more on a $10,000 invoice by bypassing SBI and Indian Overseas with Skydo.

International payments carry hidden costs from the markup baked into your bank rate and the fees deducted before the money lands. Use the tool below to see what each bank leaves you on the same invoice, and what you keep with Skydo.
You keep with Skydo₹8,47,091
Money transferUSD 10,000
$500$10K$100K$1M
State Bank of India (SBI)1% markup
₹8,38,781
Exchange rate84.15
SWIFT fee₹1,893
Documentation fee₹200
Platform fee₹500
GST (18%)₹126
You receive₹8,38,781
Indian Overseas Bank (IOB)1.45% markup
₹8,35,082
Exchange rate83.77
SWIFT fee₹1,885
Documentation fee₹0
Platform fee₹600
GST (18%)₹108
You receive₹8,35,082
Skydo0% markup
₹8,47,091
Exchange rate85.00
SWIFT fee₹0
Documentation fee₹0
Platform fee₹2,465
GST (18%)₹444
You receive₹8,47,091

SBI vs Indian Overseas: understanding the key differences for exporters

While both SBI and Indian Overseas let Indian exporters receive international payments, they differ in the rate applied, the fees taken before the money lands, how you get your FIRA, and how much room you have to negotiate. Here is how they compare side by side.
FeaturesState Bank of India (SBI)Indian Overseas Bank (IOB)
Forex markupTT buying rate, markup can start around 1% and is often higherAround 1% from mid-market, among the tighter margins of any Indian bankZero, live mid-market
Rate you are quotedCard rate published, actual rate applied fixed at time of creditTT buying rate applied, better than most banks but still well below mid, verify from your FIRASame rate for everyone, shown before you receive
Transaction feearound Rs. 500 per remittance for non-credit customers, plus GST and SWIFT fee - nil otherwiseNominal, around Rs 600 plus GST with fixed SWIFT charges. Flat as amounts rise$19 up to $2k, $29 up to $10k, 0.3% above
Cost on a small invoiceFor non-export-credit customers, the ~Rs. 500 processing fee plus margin hits small invoices hardestFX margin plus a small flat fee. Cheaper than most banks on small invoices thanks to the tighter rate and low feeFlat $19, the share falls as the invoice grows
Settlement time2 to 5 business days end to end (mostly SWIFT transit); SBI's own crediting is usually 1 to 2 banking daysTypically 24 to 48 hours once FEMA declaration and purpose code are in order, faster than most24 hours
FIRAe-FIRC to EDPMS, Rs. 200 per usagee-FIRC to EDPMS on request, charged per certificate plus GSTFree, instant, one per payment
Who it suitsExporters who already bank with SBI, especially those with an export credit facilityExporters and freelancers who want better inward rate with banksExporters receiving $2,000 or more a month

See what our clients say about us

Quotes paraphrased from public G2, Trustpilot, and Reddit threads from Indian exporters.
100+ reviews
"I want to spend my time growing my business, not negotiating exchange rates every time I make an international payment. The process should be simple and predictable."
AbhishekAbhishekCEO, Aidetic
"We banked with the same private bank for nine years and never questioned the rate. When we checked one month of FIRAs against mid-market, the spread was larger than our entire logistics bill."
Rohan M.Founder, home textiles exporter
"Every payment meant a form, a follow-up for the FIRA, and a call to the relationship manager to find out where the money was. Now it just arrives and the certificate is already there."
Priya S.Director, engineering goods exporter
Reviews paraphrased from publicly available sources. They reflect individual experiences, not Skydo's endorsement.

Frequently Asked Questions

Which bank has better forex rates for exporters, State Bank of India (SBI) or Indian Overseas Bank (IOB)?State Bank of India (SBI): The gap to the mid-market rate can start from around 1% and varies by account type and your relationship with the bank. Indian Overseas Bank (IOB): Often quoted around 1.45% below mid and reportedly Rs 0.50 to Rs 1 higher on the USD TT buying rate than private banks Neither bank converts at the live mid-market rate, so compare the rate on your FIRA against the mid-market rate for that day to see what you actually paid.
What fees do State Bank of India (SBI) and Indian Overseas Bank (IOB) charge on inward remittances?State Bank of India (SBI): SWIFT fees plus a processing fee depending on business type, typically around Rs. 500 per remittance Indian Overseas Bank (IOB): Reported at around Rs 500 plus GST as a service fee with fixed SWIFT charges, and one exporter reported the total fee on a 100,000 USD inward remittance was just Rs 3,000. Correspondent banks may still deduct roughly $15-30 in transit
How long does an international payment take with State Bank of India (SBI) vs Indian Overseas Bank (IOB)?State Bank of India (SBI): End to end, an inward export payment usually takes 2 to 5 business days Indian Overseas Bank (IOB): Funds typically clear within 24 to 48 hours once the FEMA declaration and purpose code are in order
How do I get a FIRA or e-FIRC from State Bank of India (SBI) or Indian Overseas Bank (IOB)?State Bank of India (SBI): SBI reports e-FIRC to EDPMS. It costs Rs. 200 for usage, can vary according to account type Indian Overseas Bank (IOB): e-FIRC issued to EDPMS on request per transaction
Who is State Bank of India (SBI) best suited for, and who should pick Indian Overseas Bank (IOB)?State Bank of India (SBI) suits: Best for existing SBI exporters with an export credit facility and for marginal currencies as it has a wide network. Indian Overseas Bank (IOB) suits: Exporters and freelancers who prioritise the best inward rate and low predictable charges.
Is there a cheaper alternative to State Bank of India (SBI) and Indian Overseas Bank (IOB) for receiving export payments?Skydo converts at the live mid-market rate with zero forex markup and a flat fee: $19 up to $2,000, $29 up to $10,000, and 0.3% above that. There is no correspondent deduction because you receive into a local account abroad, settlement takes 24 hours, and a FIRA is issued free with every payment.

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