Be it for a family trip or a work related trip, you must have felt the need to do currency conversion at some point. In India, changing foreign currency has made great strides, and there are new methods available in the market to do so. Foreign currencies are available at some of the major banks, every RBI authorized money changer, airports and also online forex platforms.
Based on where you’re from in India, exchanging foreign currency can be a lot different. Money changers can be found in local market neighbourhoods in metropolitan areas.
Now you can book a forex order on online forex platforms as well. But it is very important to analyse all the options available and choose the best of the lot.
Exchanging foreign currency would mean either you are buying a currency or you are selling it after coming back from the foreign trip.
With this article, we’d like to put all your queries to bed. Get to know about the several different options available for carrying out the currency exchange process in India. Also, get to know about the documents you need to have in order to do currency conversion.
So let’s get started.
Different Options for Currency Exchange in India
In India, currency exchange is available via banks (RBI-issued AD-I licences) and money changers (Both AD-II and FFMC licence holders).
Here are some of the options for doing currency exchange in India:
Banks are usually the first option that pop up in the heads of people for when they need foreign currency notes. It is worth noting that a lot of the banks usually do not stock foreign currency in the form of notes, so your visit to the bank might be of no use at all. Banks usually keep forex cards as with that, they can keep a higher profit margin.
RBI approved money changers
Choosing money changers over banks will yield you a better deal. Money changers provide better exchange rates than banks to entice the customers as their business is solely focused on currency conversion.
The money changers are available in all major cities and towns throughout India. However, keep in mind that not all money changers are licenced by the Reserve Bank of India. Make sure you’re transacting with a licenced forex broker.
You can carry out the currency conversion process at airports as well but we would not advise you to do so. Since the currency exchange vendors at the airport are well aware that passengers come to them in a hurry to buy foreign currency, you end up paying about 10-15% extra on what you would usually do had you done it via online forex platforms.
As a result, getting currency exchange done at airports could potentially end up being a very costly deal for you.
Online foreign exchange platforms
Currency exchange can be easily done by choosing online forex platforms. Some of these platforms scan the currency rates in your nearby area and get you the best rates possible for the currency you wish to buy/sell. You just need to order your requirement for the specific currency and you will see tons of forex vendors to choose from.
All this can be done while you are sitting on your couch. You can upload the documents on the portal and the currency will be delivered to your doorstep within the same day.
People are now entirely switching to these online forex platforms. Who wouldn’t want to grab the best deal possible, right?
Documents Required for Money Exchange in India
You will need to have KYC (Know – your – customer) documentation when looking to buy or sell forex through your bank or a chosen money changer. This is in accordance with RBI regulations, which all banks and approved exchange houses must follow.
Here is the list of documents that you will be expected to submit when you are buying foreign currency:
– Original and valid passport
– Valid visa for the country of travel (except where VISA on arrival applies)
– Confirmed ticket-showing travel within 60 days of taking foreign exchange
– PAN (Form 60/61 in case PAN missing)
– Aadhar Card
Here is the list of documents that you will be expected to submit when you are selling foreign currency:
– Indian Passport (Mandatory for transactions above Rs.25,000)
– Driving License copy
– Voters ID
– Aadhar Card
– PAN Card (In case it is needed)
One of the above said documents should be more than enough, however, you can confirm that with the vendor that you have chosen.
Things to watch out for while doing currency exchange in India
Here are a few things to be considered when placing your currency exchange order:
- You should plan on getting currency well ahead of the day you are travelling overseas so that there is no last-minute rush.
- It is highly advisable to go with a reputed and trusted forex vendor which is RBI authorized. There are vendors who give counterfeit foreign currency notes, so you need to keep an eye out and research well before going with a forex vendor.
- Per financial year, an Indian citizen can purchase a maximum of 250,000 US Dollars or the equivalent in another foreign currency. This cap can be used for a single foreign trip or several foreign trips during the year. The RBI defined this cap as part of the Liberalized Remittance Scheme.
- While travelling overseas, you can only take 3,000 USD or its equivalent in another currency in the form of cash out of the 250,000 USD cap. The remaining funds may be kept on hand in the form of a forex/travel card or a TC (Traveller’s cheque).
- Do keep in mind that you could end up paying 10-15% extra at airports while doing currency exchange, so it is best to avoid doing currency exchange at the airports.
- When you come back to India, there is no limit on the amount of foreign currency you will bring with you. The combined value of foreign currency notes, bank notes, or traveller’s cheques in advance of or equal to 3,000 US Dollars, and the cumulative sum of foreign currency notes, bank notes, or traveller’s cheques in advance of or equal to 10,000 US Dollars, however, must be reported to customs authorities.
- The maximum amount of foreign currency notes permitted is USD 3,000, and if this amount is exceeded, it must be reported at the airport by filling out a Currency Declaration Form.
- An Indian citizen has the right to hold up to 2,000 US dollars in foreign currency or its equivalent indefinitely, according to Reserve Bank of India law. Foreign currencies that exceed the previously stated cap must be encashed within 6 months of arrival in India.
- If you have foreign currency on a travel card, you can use the encashment feature. You may simply contact the travel card company and request Indian rupees in exchange for the number on the card. Keep a close eye on the selling rate. We would also advise you to book your orders on online forex platforms such as BookMyForex to get the best deal possible on currency exchange orders.
Why Bookmyforex.com is Your Ultimate Destination to Buy/Sell Foreign Currency in India?
- Live Exchange Rates: BookMyForex allows you to buy or sell any foreign currency at real-time, clear rates. The rates are updated every three seconds. As a result, you save anywhere from 2% to 3% compared to other foreign exchange companies that offer foreign exchange at a fixed rate for the day.
- Best Exchange Rates: BookMyForex checks the exchange rates quoted by 100s of money changers near your location and presents you with the best exchange rate for the foreign currency you wish to buy or sell, so you don’t have to wheel and deal to get better rates.
- Online Order Facility: Although banks and other financial institutions require you to visit them in person, you can buy and sell any foreign currency of your choice from the convenience of your own home. You do not need to step out from your home and can book an order successfully with a few clicks.
- Doorstep Delivery: When you purchase a foreign currency of your choice from BookMyForex, you not only finish the booking process from the comfort of your own home or office, but you also have your currency delivered to your door.
- Rate Freeze Feature: By paying a refundable deposit of 2% of your total sum, you can ‘lock-in’ a particular rate for up to three working days. If you think the currency rates will rise, you can use this feature to buy the foreign currency.
- Rate Alert Feature: If you’re tired of constantly monitoring forex prices, BookMyForex’s rate alert feature will help. You may simply set an alert at the rate you want, and you will be alerted as soon as the live rates of the foreign currency you chose hit the pre-determined amount.
- Better Rate Request: If you are not happy with BookMyForex’s rate for the foreign currency you wish to buy or sell, you can send a better rate request or call us at 9212219191, and one of our customer service representatives will assist you in obtaining the best forex rates.
How You Can Exchange Foreign Currency Online with Bookmyforex.com?
Booking a currency exchange order on BookMyForex is fairly simple. Simply follow the steps given down below to avail the best exchange rates in India:
Step 1: Simply go to the BookMyForex website or call us at +91 9212219191 to place a currency order.
Step 2: On the portal, choose the currency you want to buy and then enter the amount you would like to exchange. Since currency exchange rates vary by location, you’ll need to include your city’s name as well.
Step 3: You must now list your information and fill in details such as the location, the countries you will visit, the start and end dates of your travel, and the purpose of your trip.
Documents such as a visa, passport, PAN card, and possibly other documents may be needed. After that, you’ll be able to place an order.
Step 4: Once your transaction has been checked, you will have the option of having the currency shipped to your door or picking it up in person at the forex store/bank. Due to the ongoing COVID-19 pandemic, selecting doorstep currency delivery is strongly advised.