Everything You Need to Know About Foreign Currency Exchange in India

In India, if you are trying to exchange any foreign currencies, there are several ways to exchange money these days; you can select the most appropriate option for your needs. Regarding foreign exchange, it may now be found at banks, money exchanges, and airports. People nowadays are also opting to buy or sell currencies online when they travel abroad for work, study, or pleasure. In India, you can easily sell money online for a variety of uses. In this blog, we are going to discuss everything you need to know about foreign currency exchange in India. So, without any further delay, let’s get into it.

Best Methods to Exchange Foreign Currency in India

Indian Banks' Currency Exchange Services:

To get a personal account, your pickups are Indian banks. You might receive nice support when converting currencies. But before you go, remember these crucial points:

• Find out from the bankers how much a currency is worth in relation to the Indian rupee.
• You ought to find out about bank offers and service fees. 
• Some of the banks & currency they offer is listed below, as per their website:

Airports

You’re in a hurry and forgot to exchange, the airport terminals are your stop. One may find these exchange services typically upon exiting baggage claim in most terminals. These terminals are typically the final stop to obtain currency before takeoff, therefore getting currency from them is always an expensive affair. Their increased overhead is typically levied through the customer in the form of a service charge.

Airport foreign exchange usually offer weaker exchange rates and higher fees for their services compared to Banks & Money changers.

Below are the major locations for foreign currency exchange services at the major airports in India:

Use RBI-approved Money Changers to Buy/Sell your Currency

When exchanging money in a money changuthorisd by RBI) there is no need for a bank-specific account, unlike when exchanging currency with banks. Money-changers often offer more appealing deals, as this is their core service. The process and documentation is the same as with banks, and the same rules apply to the transaction. . You just need to arrive at the forex company’s office and begin the exchange process after sharing the due KYC documents prescribed by RBI. Some of these companies also offer online rate checking and home delivery/pickup of currencies, depending on the city where you are located. For this, you need to contact the company’s customer care to learn more. Supreme Forex is one such initiative by Supreme Securities Limited (a 28 year old company in currency exchange). You will be surprised to know; that your funds will be deposited immediately into your accounts.

Make a Currency Exchange Rate Comparison

Comparing prices between banks and approved currencyservice providers is advisable, as bank service fees are consistently higher. You must accurately compare their prices. These days, it is easy to compare rates offered by different service providers online and you can also call their customer support and ask for the best rates.. On their websites, most organizations give you access to complete exchange rate information.

Online Marketplaces

These days, many online platforms are often able to be very competitive- especially in high value transactions. They are usually of two kinds: a) aggregators that look for foreign exchange partners near you for the best rate.  Or b) online services offered by authorized money changers directly. There is no doubt that the direct online service of money changers would provide the best rate as there are no middlemen involved, but with aggregators, you are usually able to get access to a variety of currencies as well as services in different locations. 

As everything is available online, you can make an informed decision, compare the offerings and pick from the location and rate that makes sense for you. You can pick up the money from the store or have it delivered to your door.  As this is a secure financial transaction involving high INR amounts, please be wary of the provider you choose for your transaction and always check that they are RBI authorized.

Documents Required For Currency Exchange In India

In order to purchase or sell foreign currency in India, you must present KYC (know your customer) documentation. Whether you exchange money at a money changer or a bank makes no difference. It falls under RBI regulations that all banks and exchange houses with approval are required to follow.

Ensuring compliance with Know Your Customer (KYC) regulations is a fundamental aspect of engaging in currency exchange transactions. To facilitate currency exchange through either banks or authorized money changers, it is mandatory to submit specific KYC documents. These essential documents include your Indian passport, PAN card, Aadhaar card, a copy of your return travel tickets, a copy of your visa as applicable, and any other document as may be needed. The submission of these documents aligns with regulatory requirements set forth by the Reserve Bank of India (RBI) and serves as a standard practice in the financial industry. KYC procedures are in place to verify the identity and address of individuals engaging in financial transactions, promoting transparency and security. As a customer, ensuring KYC compliance not only adheres to regulatory norms but also contributes to a smooth and trustworthy currency exchange experience. Therefore, before initiating any currency exchange transactions, it is imperative to have your KYC documents in order, allowing for a seamless and secure process.

GST On Currency Exchange In India

The following table shows the value of services in foreign currency purchases and sales. 

Tips for Currency Exchange

When diving into currency exchange, meticulous planning is essential for a smooth experience. Make sure to plan ahead and get your foreign currency well before your travel date. The Reserve Bank of India allows you to purchase currency up to 60 days in advance, so take advantage of that. Always choose authorized forex providers to ensure your transactions are legitimate and to avoid counterfeit currency. Doing thorough research on reputable RBI-authorized vendors before making your choice is crucial.

It's also important to understand the limits set by the RBI's Liberalized Remittance Scheme, which caps the annual amount at 250,000 US Dollars for Indian citizens traveling abroad. Being aware of these limits helps you plan your finances effectively. Travel forex cards can also be a handy tool for a seamless travel experience.

Although airports might seem like a convenient option for currency exchange, be cautious. Vendors at airports often charge an additional 10-15% due to the urgency of passengers. Looking for alternative options can help you get better rates and save money.

As per RBI, Travelers going to all countries other than (a) and (b) below are allowed to purchase foreign currency notes / coins only up to USD 3000 per visit. Balance amount can be carried in the form of stored value cards, travelers cheque or banker’s draft. Exceptions to this are

(a) travelers proceeding to Iraq and Libya who can draw foreign exchange in the form of foreign currency notes and coins not exceeding USD 5000 or its equivalent per visit

(b) travelers proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of the Commonwealth of Independent States who can draw the entire foreign exchange (up-to USD 250,000) in the form of foreign currency notes or coins.

Following these guidelines ensures that your currency exchange is not only financially wise but also compliant with regulations, making the process smoother and well-managed. Some countries accept INR, which can reduce the amount you need to exchange. Check if your destination does this and plan accordingly.

Why Choose Supreme Forex To Exchange Foreign Currency In India?

Reserve Bank, currently, issues authorisation under Section 10(1) of the Foreign Exchange Management Act, 1999, to select entities (as Authorized Dealers Category-II) to carry out specified non-trade related current account transactions, all the activities permitted to Full Fledged Money Changers and any other activity as decided by the Reserve Bank

We offer our services directly, with authorization from the Reserve Bank of India (RBI) as an AD-II (Authorized Dealer Category II). This allows us to handle a range of foreign exchange transactions. With a network of branches across India, we have been providing reliable currency exchange services for more than 28 years. Our long-standing presence and RBI authorization ensure that our customers receive trustworthy and efficient service. Supreme Forex also offers doorstep delivery of currency orders, which can be completed in two to three days.

We also provide dedicated customer service to all our customers. We are available to help and provide the best exchange rates on our forex services. You can trust Supreme Forex with your currency exchange.

Online platforms such as Supreme Forex not only provide quick, secure service but also have the best prices available. It's also less expensive than all the other options. An additional benefit is that you may use our website to check the current currency rates before making a decision.

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‍Sources:

• RBI

https://www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=24

• HDFC Bank

https://www.hdfcbank.com/personal/pay/cards/forex-cards/forex-services-fees