Currency exchange rates can turn out to be a real dealbreaker and can cause a dent in an individual’s pocket who is traveling overseas. Even a difference of a few paise while doing currency conversion can make a huge difference in the budget for the trip. It becomes crucial to be aware of the various options while doing currency exchange.
The currency exchange domain has made great strides in the last few years. The foreign exchange space has witnessed rapid disruption with the arrival of online foreign exchange platforms which have brought a sense of trust and transparency.
Ways to do currency exchange
Having the correct documents, including the Passport and Visa is the first and foremost step. The process can be initiated at-
Banks
Banks exchange the currency at a prefixed exchange rate. Unlike online sites, the bank does not provide a rate on a real-time basis. With banks, the charges are higher as compared to other exchange platforms. The other major problem with banks is the availability of foreign currency notes.
1.5%-2% could be saved on exchange rates via online foreign exchange platforms rather than banks.
Airport Kiosks
Airport Kiosks for currency exchange may be convenient, but they are certainly not the ideal choice as they are expensive. They charge anywhere between 10 to 15% of higher fees. It is ideal for only an emergency as it also has some additional charges.
Online Currency Exchange Platforms
The convenience of online transactions has made online forex sites a popular option for exchange. Most forex sites offer live rates that are updated on a real-time basis.
There are no added fees on exchange and some sites also offer zero transaction fees. These platforms work as an aggregator and have unique tie-ups with the banks and authorized forex vendors. They Scan the currency’s rates in your area and show the best results possible.
Online currency exchange platforms like Bookmyforex.com provide a rate alert function. Set a desired rate for the currency you wish to buy and once the currency rates hit that level, you will be notified instantly.
Forex sites also offer rewards and cash backs on exchange deals with the best exchange rates on forex cards that let you load multiple currencies.
Here are a few things to keep in mind while you try to book your currency exchange order:
• An Indian resident can buy a maximum of 250,000 US Dollars or its equivalent in some other foreign currency per financial year. You can use this limit in one trip or multiple foreign trips throughout the year. This limit has been set under the Liberalized Remittance Scheme by the RBI.
• Out of the 250,000 US Dollars limit, you can only take 3,000 USD or its equivalent in other currency in form of cash when you take a trip abroad. The remaining amount can be carried in a forex/travel card or traveler’s cheque.
• When you return to India, there is no cap on how much foreign currency you can carry back home. However, the cumulative amount of foreign currency notes in advance of or equal to 3,000 US Dollars and the combined value of foreign currency notes, bank notes, or traveler's cheques in advance of or equal to 10,000 US Dollars must be reported to the customs authorities.
• The cap for foreign currency notes is USD 3,000 and, if the limit is breached, it must be declared by filing the Currency Declaration Form at the airport itself.
• According to the rules laid down by the Reserve Bank of India, an Indian citizen is entitled to keep up to 2,000 US dollars of a foreign currency or its counterpart forever. Foreign currencies crossing the limit told earlier must be encashed within 182 days of their arrival in India.
• You can use the encashment feature if you have foreign currency on a travel card. You can simply contact the travel card provider and ask them to provide you Indian Rupee in return for the amount held on the card. Keep an eye out for the selling rate.
The best option for currency exchange is through online platforms without a doubt.
Search for the currency on the platform you plan to buy/sell. The rates are updated every 3 seconds. Lock the rate if you think the currency rates might go up in the next day or two. Go ahead and complete your transaction with basic documents. Most platforms will deliver the foreign currency to your doorstep in no time.
From Brand Desk
