Imagine your uncle from London visited your home and gifted you some British Pounds. Now, you're wondering how to exchange them for Indian Rupees. Or perhaps you're planning to visit your cousin in Canada and need Canadian Dollars. This is where the journey of currency exchange begins. The process might seem complex, but it is quite straightforward once you understand the basics.
How to exchange currency in India
1. Banks
Banks are some of the most reliable and secure options, offering competitive exchange rates and customer support. Axis Bank’s Foreign Currency Cash offers the simplest ways to manage foreign exchange. It is available in more than 14 currencies in a variety of denominations. You can even encash unused foreign currency cash at any Axis Bank branch.
2. RBI-licensed money changers
Licensed money changers offer a convenient alternative for foreign currency exchange in India. These authorised dealers can assist you in converting foreign currency to Indian Rupees or vice versa. You do not require a bank account to use their services, and they are readily accessible in major cities and towns across the country.
3. Airports
Travellers stuck at the airport have limited options when it comes to exchanging their money. It is often the last stop before a flight abroad to grab some foreign currency and the first chance to get rid of leftover cash upon returning home.
4. Online forex marketplaces
In India, online forex platforms offer currency conversion through websites or apps, comparing rates from various providers for the best deals. You can input your desired currency and collect cash from local authorised vendors. You can verify exchange rates online for the final cost. Complete the process to get Indian Rupees in cash or on a Forex Prepaid Card, as preferred.
Points to consider when exchanging currency in India
- Plan ahead:It is better to exchange your currency before travelling. This will save you from the worries of last-minute hassles and give you ample time to research for the most favourable rates.
- Shop around and compare rates:Rates can vary between banks, money changers and airports. It is always best to compare rates before you exchange your currency. You can use online resources or exchange apps to compare rates.
- Use a reputable money changer: You should exchange currency only with money changers authorised by the RBI. This will ensure you get genuine currency and help avoid fraud. The RBI's website has a list of RBI-authorised money changers.
- Keep your receipts: Always keep the receipts for your currency exchange transactions. You may need them if you need to exchange your currency or have any problems.
- Consider getting a Forex Card: A Forex Card is a Prepaid Debit Card that you can load with foreign currency. It can be a convenient way to exchange currency and avoid carrying large amounts of cash. Axis Bank's Forex Card offers a secure and hassle-free way to carry foreign currency, allowing you to spend worldwide without incurring high transaction fees. Ideal for travellers, the card is accepted at millions of merchant outlets and ATMs across the globe.
- Carry a mix of denominations: It is a good idea to carry a mix of denominations when you travel. This will make it easier to make small purchases.
Documents required for exchange currency in India
When purchasing or selling forex through your bank or a selected money changer, you must provide KYC (Know Your Customer) documents. This requirement is per the regulations set by the RBI. All banks and authorised exchange houses must comply with this rule.
To purchase foreign currency in India, you need to provide the following documents -
1. Indian Passport
2. Confirmed Air Ticket indicating travel within 60 days
3. PAN Card
4. Valid Visa (mandatory for certain countries)
When selling foreign currency in India, the following documents are required -
1. Indian Passport (mandatory for transactions exceeding ₹25,000)
2. PAN Card and any one of the following documents:
- Driving License
- Voter ID
- Aadhaar Card
Also Read: Benefits of using a Forex Card while studying abroad
Conclusion
Axis Bank offers various forex products that help you buy, sell, and manage foreign currency of different denominations, with quick and secure banking transactions. In addition to Axis Bank’s Foreign Currency Cash, you can also avail of the Travel Forex card, International Fund Transfer, Foreign Currency Demand Draft, among other forex products.
FAQs
Q. Where can I exchange foreign currency in India?
You can exchange currency at banks, authorised money changers, airports and online forex platforms.
Q. How much foreign currency can be exchanged in India?
Certain limits may apply to transactions. Check with your chosen service provider or the RBI for up-to-date regulations. For more details, please visit the RBI website.
Q. Will banks exchange foreign currency?
Yes, they are a reliable source for exchanging currency. Many banks, including Axis Bank, offer foreign currency exchange. They provide competitive rates and can guide you through the process.
Q. Can I deposit foreign currency in my bank in India?
Yes, you can deposit foreign currency into your bank account in India. Banks generally offer special accounts for this purpose, such as Resident Foreign Currency (RFC) Accounts.
Q. Is it legal to keep foreign currency in India?
There are restrictions on the amount of foreign currency you can hold. Check RBI guidelines for clarity.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
