How to Exchange Currency in India Things NRI Must Know | HDFC Bank (2024)

FAQs

How to Exchange Currency in India Things NRI Must Know | HDFC Bank? ›

Exchange through banks:

RBI allow remittance of up to USD 25,000 per calendar year. You can remit in foreign currency for an RBI-approved purpose. You can buy FOREX up to USD 25,000 only. If you bring FOREX beyond a specified limit to India, you must declare it.

Through an ATM -

An ATM is the most convenient way to convert currencies in India. To make the necessary withdrawal, you could utilize your ATM Debit Card from your country of residence. When using your ATM card abroad, banks may impose a service fee as well as an exchange rate transaction cost.

Import of Indian Currency is prohibited. However, in the case of passengers normally resident in India who are returning from a visit abroad, import of Indian Currency upto Rs. Rs. 25,000/- is allowed.

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Carry some cash with you at the start of your trip

This means you'll need to deal with currency exchange once you arrive, as opposed to beforehand. So, it's a good idea to have some cash on you (in pounds) when you arrive in India, in case you can't find an ATM. This means you can head straight to a currency exchange.

There's no limit, however, to how much foreign currency you can bring into India. Although, you will have to declare it if the amount exceeds US$5,000 in notes and coins, or US$10,000 in notes, coins, and traveller's cheques².

Tip: The US dollar is also widely accepted in India, but it is still recommended to get some rupees in small denominations which can be used in remote areas where the US dollar may not be accepted.

Where is the best place to convert USD to INR? ›

Local banks and credit unions usually offer the best rates. Major banks, such as Chase or Bank of America, often offer the added benefit of having ATMs overseas. Online peer-to-peer foreign currency exchanges. Online bureaus or currency converters, such as Travelex, provide convenient foreign exchange services.

There are multiple ways to convert USD to INR in India for example, at your local bank branch, at airports, offline money changers, or online via reputed forex platforms like BookMyForex. Having to run to a bank or an offline money changer every time you want to convert currency isn't convenient.

Bank transfers are usually the cheapest option when it comes to funding your international money transfer with Wise. Bank transfers can be slower than debit or credit cards, but they usually give you the best value for your money.

As per the Reserve Bank of India (RBI), Indian residents are allowed to carry cash up to Rs. 25,000 (approx. $350) while travelling within the country. These guidelines establish legal limits on how much cash can be carried on domestic flights for both residents and non-residents while entering or leaving the country.

NRI customers need an account which can be maintained in a currency other than Indian Rupees. To cater to this need, a Foreign Currency Account is created for safe parking of their earnings in Foreign Currency.

The RBI must give its clearance before an NRI can transfer money to or from an NRO account outside of India. The RBI has given authorized dealer banks, or banks that provide or open NRO accounts for NRIs, the authority to permit the making of such remittances, subject to certain documentation and other restrictions.

Passport and PAN card are mandatory for transactions above Rs. 25000. For forex sell transactions above USD 5,000 or it's equivalent in others currencies, foreigners/NRIs have to produce the currency declaration form (CDF) form which can be obtained from Airport Customs Authorities.

Federal law requires financial institutions to report currency (cash or coin) transactions over $10,000 conducted by, or on behalf of, one person, as well as multiple currency transactions that aggregate to be over $10,000 in a single day. These transactions are reported on Currency Transaction Reports (CTRs).