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Friday, 14 July 2017

Procedure to Exchange Foreign Currency in India


Foreign exchange is the conversion of one country’s currency into another. And every nation has various procedures for this. Likewise in India also there are various procedures to exchange foreign currency.  Once a foreigner arrives at the Indian airport, it is necessary to convert their home currency into Indian rupee. It can be done with the help of foreign exchange counters. Only authorized banks or authorized money changers in India are permitted for this purpose. So it is necessary to make sure that the one, whom you approach for exchanging foreign currency, is an authorized dealer. Such foreign currency exchange authorized dealers can offer you various benefits like,
foreign currency exchange in India

  • Ensure a relaxed foreign currency exchange deal at the current rates which are sure to be a reasonable one
  • Foreign exchange alert is an option to get rates from time to time
  • Leftover currencies can also be sold through buyback option which is also available with many foreign currency exchange dealers
  • Visiting certified exchange dealers at their branches will help you from unscrupulous money exchangers 

Various Steps to Exchanging Foreign Currency in India 

  • Only authorized banks and money changers are permitted to deal with the foreign currency exchange in India. So make sure that the one whom you approach is an authorized dealer.
  • For exchanging foreign currency in India, a passport is not required, only an identity proof is needed for this.
  • Insist on the receipt because it is the proof of your source of the fund in India. It also shows the amount of foreign currency exchanged for Indian currency and at the rate which you exchanged it.
  • Proper care should be given to Indian currency alerts as there are fake currencies in circulation across the economy.
  • Before buying foreign exchange, compare it with online portals and offline branches, so that, you can exchange at a favorable rate.
  • Always try to buy your foreign exchange before your travel date. It will help you to get a better foreign exchange deal and also help you to avoid last minute hurry.
  • Try to keep a spare foreign exchange card with you for special times of emergency
Above mentioned are the main procedures involved in the exchanging of foreign currency in India. So awareness about all these procedures are necessary for dealing in foreign exchange markets in India. Otherwise, it may lead to a lot of complexities and waste of your time. So it is better to be aware of all these facts, which in turn help you to deal with the foreign exchange market smoothly.

Exchange rate systems in India

There are various exchange rate systems prevailing in the world economies, like fixed exchange rate system, floating exchange rate system etc. In India we do not have a fixed exchange rate system .This is to bring a balance among the exchange rates as foreign exchange reserves differ from country to country. Thus we cannot follow fixed exchange rate system hence we follow the floating exchanges rate system.

Currency Exchange Rates

There are various currency exchange rates prevailing in the economy, they includes,
  • Sell rate: the rate at which the foreign currency is exchanged with local/home currency.
  • Buy rate: it is the rate at which foreign currency is bought back from travelers, to exchange into local currency
  • Buy rate: is the rate to buy foreign currency back from travelers to convert into local currency
  • Spot rate: it is the rate, which is charged by banks or large financial institutions among each other while trading on foreign currency
  • Spread: it is the difference between the buy and sell rate offered by a foreign exchange provider. And it includes cross rate and commission.
  • Cross rate means rate given to the consumers who exchanges currencies, excluding home currency.

5 comments:

  1. This is great info to have. Now I need my plant ticket to India.

    ReplyDelete
  2. hi
    such an nice and informative article about foreign exchange in india
    thanks for sharing

    ReplyDelete
  3. Hi,
    This is the very informative post and interesting one, I love to read more about this.
    I appreciate your effort.

    ReplyDelete
  4. With this example, you'd then be thinking of buying the AUD/JPY cross (buying AUD/selling JPY) to target your view that AUD contains the best prospects among major currencies plus the JPY the worst.guarantor loans

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  5. In its simplest terms, FBAR is a regulation that you are required to comply with if you have foreign bank accounts. An FBAR is a Foreign Bank Account Report, also referred to as a Report of Foreign Bank and Financial Accounts.guarantor loans

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