What are OUR, BEN, SHA Payment Instructions in Foreign Remittance?

When filling in an A2 Form for foreign remittance, have you noticed the options OUR, BEN, and SHA? If you wish to get a quick idea about these codes and go back to fill out the rest of the form, this blog is for you.

During an international money transfer, Indian banks usually send the payment with the help of one or more intermediary banks. As a result, it creates intermediary bank charges that must be paid either by the payer, payee, or both. OUR, BEN, and SHA are the payment options that a payee can choose to cover intermediary bank charges.

Also Read: How to Fill Form A2 For Remittance Abroad – Simple Guide

OUR (Sender Pays)

When the sender chooses OUR as the payment instruction for a wire transfer, they cover the intermediary bank charges. This means that the charges are paid by the sender, before initiating the international money transfer. As a result, the beneficiary receives the full amount sent from India without any deductions for intermediary bank charges.

BEN (Beneficiary Pays)

The international payment instruction, BEN stands for ‘Beneficiary’. Under this option, the beneficiary pays all intermediary bank charges and the sender has to pay none. Therefore, they receive the payment after the deduction of these charges.

SHA (Shared)

When using the overseas remittance option SHA, the intermediary bank charges are split between the sender and the beneficiary. A part of the intermediary bank charges is paid by the sender, before making the payment, and the remaining charges are deducted from the money being sent to the payee.

OUR is the most suitable and preferred option for university fee payments because the full amount needs to be credited to the university bank account.

Learn More: Intermediary Bank Charge Fully Explained

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