Recently, i have initiated a withdrawal, and I see that there is a commission that goes to the partner bank. This is something Vested should stay away from. Since there is a fixed withdrawal fee that is already in place, Vested shouldn’t be taking a margin on the withdrawal. I understand that it’s not a direct commission, but this will lead to the partner bank giving a lower rate to compensate for the commission.
2 Likes
First of all thank you for posting your concern. Let me try explaining the complete scenario here.
Withdrawal
Let’s understand the withdrawal first. For withdrawals, we have partnership with JP Morgan and Chase - a very well known and global bank. The partnership is in place to ensure timely and efficient withdrawals. That being said, we now have 2 options:
-
User can withdraw in USD - This results in the receiving bank doing the forex conversion (USD to INR) and depositing into the account. Since vested is sending a wire in USD all the charges namely -
a. Intermediary Bank Fees - charged by Indian Banks (may be upto $20 fee) may or may not be applied depending on your bank.
b. Forex Mark Up - Indian bank charges a forex mark-up which can be 2-3% depending on the Inter Bank Rate commonly known as IBR (the FX conversion rate you see on Google), as no bank converts on IBR or the price you see on Google.
c. GST/FCC Tax - Since the bank is converting your USD to INR and charging an FX markup, they have to pay GST which is charged from you.
d. SWIFT Copy - Your bank might request you to provide you with a SWIFT copy or other documents. Which would result in a conversation between you and your bank and might delay the deposit.
-
User can withdraw in Local Currency - This results in our banking partner performing the foreign currency conversion (USD to INR or any other local currency). Now that Vested is doing the FX conversion, your bank simply receives an NEFT/RTGS INR transfer in your bank account (in case of India)
a. Intermediary Bank Fees - Because of the above setup, 0 fees is charged.
b. Forex Mark Up - There is still an FX markup applied and platform fees is applicable to the user, but the total still is in range of 1-2% inclusive of everything and better than what you would receive with your bank, since we have negotiated lower markup for our users.
c. GST/FCC Tax - Since this is not happening in India anymore, no tax is applicable to user on currency conversion.
d. SWIFT Copy - Your bank is now receiving an INR and does not need any document.
While we recommend our users to withdraw in local currency (INR in this case) - so that the process is extremely smooth for you it is absolutely upto the user to choose what they see fit.
Just to give you a better context of this - currently if you withdraw $1000 from Vested FX rate you would be getting is $1 = ₹85.25 as of 19th June, 2025 - 15:20 IST.
Now, if you look at ICICI, HDFC are ₹85.15, ₹85.00 as of 19th June, 2025.
We have also removed fixed fee of $5 above $100 withdrawals for local currency transfers and are now only applicable on USD withdrawals.
Please update the application if you haven’t and do let us know if you have any further queries. Hope this helps. Thank you.
Regards,
Samveg Thaker
Product Manager at Vested
2 Likes
I agree in toto with Samveg.
The process is so smooth that it’s worth paying the fee, as there’s no free lunch.
2 Likes