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How to Exchange Currency in India? (4 Ways, Fees & Limits)

July 2025 6 min Read
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A friend once told me, “Don’t wait until the airport to get your foreign currency.” I didn’t listen at first, until I found myself standing in the airport queue, paying almost 15% extra. That’s when it hit me about how much one loses in not making the right choice.

Travelers in India can exchange foreign currency through online forex websites such as BookMyForex, known for offering guaranteed lowest rates and same-day delivery of foreign currency. Some non-optimal traditional methods include banks, airport kiosks, and RBI-licensed offline money changers.

Each method has its benefits and downsides, and knowing these can save you time, money, and hassle. Continue reading to know how to exchange currency the right way, the documents you’ll need, and the currency exchange limits you must know, so you can step into your trip fully prepared.

4 Options for Exchanging Foreign Currency in India

1. Banks

The most obvious choice is to exchange foreign currency via banks. It is usually considered a safe and trustworthy option because of the integrity of banking institutions.

But here’s the thing: most of us aren’t experts in buying and selling foreign money. We don’t really understand how the prices (exchange rates) are set.

You might see a rate online, let’s say on Google, that says 1 US Dollar (USD) is equal to 85 Indian Rupees (INR). This is like the “interbank rate”, the most transparent rate banks use when they trade with each other.

However, when you go to your bank to buy USD, they might tell you that 1 USD will cost you 87 INR. See that difference? 87 instead of 85?

That extra 2 Rupees is how the bank makes a profit. They don’t always disclose this margin upfront.

At the time of writing, HDFC Bank is offering a USD to INR rate of 87.82, while the interbank rate on Google shows 85.61.

Another drawback is the slow process. Banks typically require a branch visit for currency exchange, and doorstep delivery is not available.

Even then, banks stock only a handful of popular currencies, so there’s a good chance the currency you need may not be available immediately.

Foreign Currency Exchange Options in India: Banks

2. RBI-Approved Money Changers

Offline money changers are easily accessible since these vendors are often located nearby, making them a convenient option for many travelers.

One advantage is that they tend to be open to negotiation of exchange rates, which could, at times, translate to a good bargain. There are, however, huge risks associated.

Keep in mind that not all money changers are licensed by the Reserve Bank of India. As offline dealers sometimes deal with no regulation, the risk of scams can’t be eliminated.

These dealers might offer good rates, but there is always a chance of receiving counterfeit or fake notes.

Exchanging currency, in general, also involves providing personal documents, which may put your sensitive information at risk due to limited security features with some dealers.

And finally, rates vary considerably between dealers and are not standardized, so it is hard to know whether you are getting a good rate. Hence, tourists must be extremely careful with offline currency exchange brokers.

Ensure that you are dealing with a licensed forex broker.

Foreign Currency Exchange Options in India: RBI-approved Money Changers

3. Airport Counters

Airport foreign exchange counters are a favorite way for travelers with urgent foreign currency needs before boarding their flight.

The convenience surely comes at a steep price. As these counters cater to immediate demand, there is generally low transparency on fees and rates.

These counters usually impose premium rates with markups often going up to 10-15%. Some counters do not even give detailed fee or rate breakdowns, resulting in uncertainty or surprise charges.

Also, long lines and rush hours cause anxiety and waste valuable time before your flight, but because airport counters exploit urgency, travelers tend to pay more out of necessity than choice.

4. Online Forex Platforms (like BookMyForex)

Online forex platforms such as BookMyForex are a smarter alternative for currency exchange, providing convenience, clear price disclosure, and the best rates.

The platform guarantees the lowest rates on both forex cards and currency notes. If a customer receives a better rate elsewhere, then they can raise a claim and receive 2x the price difference as cashback.

BookMyForex delivers currency notes in more than 40 currencies, including exotic and rare ones, so customers can receive the exact currency they require. They can even specify specific denominations.

BookMyForex prepaid forex cards have zero forex markup, and provide the exact interbank rate, so if the interbank rate of USD is ₹85, then customers receive just that with no added margin.

To ensure safe and reliable services, BookMyForex partners only with RBI-approved money exchangers and uses a unique rate comparison engine to compare rates across hundreds of dealers and show the best rate on the site.

The rates also get updated every three seconds, in contrast to banks that employ “fixed rates of the day”.

The platform even offers a Book Now & Pay Later feature, allowing users to lock-in their preferred rates for up to 3 days, offering protection from rate changes.

Customers can book forex online 24×7, anytime, and receive it the same day across 50+ cities. With great cashback offers always running, the platform is an easy and affordable method for currency exchange.

Foreign Currency Exchange Options in India: Online Forex Platforms

Documents Required for Currency Exchange in India

While the process for exchanging foreign currency can vary in terms of rates, fees, convenience, speed, and transparency, one step remains common across all options: providing the necessary documents.

Here is the list of documents that you will be expected to submit when you are buying foreign currency:

  • Original and valid passport (both front and back pages)
  • Valid visa for the country of travel (except where a visa on arrival applies)
  • Confirmed ticket showing travel within 60 days of taking foreign exchange
  • PAN Card

In addition to the documents listed above, the service provider may also request other supporting documents depending on the purpose of the international trip.

Currency Exchange Limits Every Traveler Must Know

Keeping the below limits in mind will help you stay compliant and avoid fines or penalties during your travel and currency exchange transactions.

a. Liberalized Remittance Scheme (LRS): Indian residents can send up to USD 250,000 (or equivalent) abroad per person per financial year. This is the total cap on foreign currency one can buy in India or transfer outside India in a year.

b. Carrying Cash Abroad: While traveling abroad, one can carry up to 3000 USD or its equivalent in cash. Utilize forex/travel cards or traveler’s cheques for the remaining funds.

c. Returning to India with Leftover Currency: Although there is no restriction on the amount of foreign exchange that anyone can bring in, they are required to declare anything over USD 10,000 to customs.

d. Encashing Leftover Currency: An Indian citizen can retain up to 2000 US dollars in foreign currency or its equivalent forever, as per the RBI guidelines. Foreign currency over this amount has to be encashed within 180 days of landing in India.

Currency Exchange Limits for Travelers

Online Currency Exchange via BookMyForex

Step 1: Order Details – Open the BookMyForex website and begin by choosing your city and the currency you want to buy. Enter the amount and click on “Book This Order.”

Step 2: Customer Details – Provide information such as your name, contact number, email ID, PAN number, countries you are traveling to, and the start & end dates of your trip.

Step 3: Eligibility Check & Documentation – Specify the purpose of your trip, verify your eligibility, and then upload the necessary documents.

Step 4: Order Processing – Choose an existing delivery/pickup address or enter a new one. Make sure to review your order details before making the payment.

If still in doubt or would like a visual, check out the following video on exchanging foreign currency using BookMyForex.

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