How to Exchange Foreign Currency in India

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Know the ways to exchange currency in India and the documents required.

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Whether you're a tourist visiting India or an NRI returning with foreign currency, you'll likely need to convert it into Indian rupees. Fortunately, exchanging foreign currency in India is straightforward, thanks to banks, RBI-approved money changers, airports, ATMs, and online forex platforms. If you're buying forex for travel abroad, carry your passport, visa, valid ID, and confirmed air tickets (within 60 days). No tickets are needed if you're selling forex or converting foreign cash into rupees.

This guide covers how to exchange foreign currency in India, what documents you'll need, and the options available to you.

How to Exchange Currency in India?

If you’re looking for where we can exchange foreign currency, there are multiple authorised options available across India. The list below outlines some of the most commonly used channels.

• Through RBI-authorised Banks

  The Reserve Bank of India (RBI) permits Indian banks to buy or sell foreign currencies legally. Hence, you can visit any RBI-authorised bank to exchange foreign currency in India. If you are a Non-Resident Indian (NRI), you can use your NRI Savings Account to access the foreign currency exchange facility. Banks typically charge a relatively lower currency mark-up rate.

• At International Airports

  Almost all international airports in India have designated currency exchange counters. These are convenient for last-minute currency needs but may involve higher charges. If you’re wondering how to exchange money in airport, here’s a quick overview:

  • Locate an authorised currency exchange counter within the airport terminal
  • Present valid identification, such as a passport or government-issued ID
  • Declare the amount and currency you wish to exchange
  • Complete the transaction and collect the receipt

  Due to higher commissions and less favourable currency exchange rates, it's advisable to use this option only when you're short on time or alternatives.

With RBI-approved foreign exchange dealers

If you're planning on how to exchange currency in India, following authorised providers offer a reliable and hassle-free process. Their services ensure that currency exchange in India is accessible across various locations:

• Authorised Dealer Category II - Entities authorised by the RBI to provide limited foreign exchange and remittance services.
• Full-Fledged Money Changers (FFMC) - Non-bank entities licensed by the RBI to offer a broader range of currency exchange services, including buying and selling foreign exchange.

You can visit either of them for foreign currency exchange without needing a bank account. However, for NRIs and returning residents who wish to maintain access to banking services in India, opening a Premium Savings Account from DBS Treasures can complement these transactions with added convenience and premium features.

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Foreign Currency Exchange via ATMs

If you want to try a straightforward method to get Indian rupees while in India, ATM withdrawal is another option. You can use the ATM Card of your country of residence to withdraw Indian currency. Banks typically levy additional charges, including an exchange rate fee, service charge, transaction cost, etc., for cash withdrawal at ATMs using a foreign bank card. You must check the overall costs incurred before using the ATM withdrawal method.

Online Forex Exchange

Exchanging foreign currency online is simple and convenient. Start by choosing a trusted online forex platform or your bank’s digital service. Register or log in, enter your details, select the currency you want to exchange, and enter the desired amount. Compare exchange rates and confirm the transaction. Once processed, the converted funds are credited to your account or delivered to your home, as required.

Documents Required for Foreign Currency Exchange in India:

The documents required for exchanging foreign currency in India include:

• Passport
• ID and address proof like PAN and Aadhaar (For Indian customers obtaining forex)
• Confirmed air ticket showing travel within 60 days (required only when buying foreign currency for an overseas trip)
• Valid Visa copy
• Currency Declaration Form – If you're carrying foreign currency exceeding USD 5,000 (or equivalent) in cash or USD 10,000 in any form, you must declare it to customs.

Things to Consider Before Exchanging Foreign Currency

• Compare Exchange Rates – Always check currency exchange rates from different sources to get the best value.
• Transaction Limits – Residents may buy/sell forex within the Liberalised Remittance Scheme (LRS) ceiling of USD 250,000 per financial year; higher amounts need RBI approval.
• Payment Mode – Some dealers may require payment via bank transfer rather than cash.
• Tax Implications – Be aware of tax regulations if converting large sums.

By keeping these factors in mind, you can ensure a smooth and hassle-free currency exchange in India experience.

Final Note:

Now that you know how to exchange foreign currency in India, you can choose your preferred currency exchange medium. Remember to research the financial institutions and authorised currency exchange service providers before making a transaction. You must check their credibility, exchange rate, transaction fees, efficiency, etc., to get the best deal.

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FAQs

1. Where can Iwe exchange foreign currency?

   You can exchange foreign currency at banks, authorized money changers, airport kiosks, and online forex platforms.

2. How can I exchange foreign currency in Indian bank?

   Visit a bank branch that offers forex services, provide ID (passport/PAN), and complete the transaction at the applicable exchange rate. Banks may charge a small fee.

3. Can I deposit foreign currency in my bank in India?

   Yes, you may deposit foreign currency in FCNR(B), NRE, or NRO accounts, subject to FEMA regulations. If you're bringing in foreign currency over USD 5,000 in cash, you must declare it to customs on entry into India.

4. Is it legal to keep foreign currency in India?

   Yes, residents in India may legally retain foreign currency notes or traveller’s cheques (TCs) up to USD 2,000 (or equivalent) indefinitely. If the amount exceeds this limit, it must be deposited in a foreign currency account or surrendered to an authorised dealer within 180 days, as per RBI regulations.

5. How much foreign currency can be exchanged in India?

   As per RBI guidelines, individuals can exchange foreign currency up to USD 3,000 in cash. Higher amounts can be received via traveller’s cheques or bank transfers, subject to documentation.

6. What is the fee to exchange currency?

   Currency exchange fees vary by provider and may include service charges, margins on exchange rates, and GST. Banks and authorised dealers disclose these charges upfront.

7. Which bank exchange foreign currency in India

   Most authorised banks in India offer foreign currency exchange services through designated branches or forex desks. Availability may vary by location, so it's best to check with your bank in advance.

*Disclaimer: This article is published purely from an information perspective, and it should not be deduced that the offering is available from DBS Bank India Limited or in partnership with any of its channel partners.

The purpose of this blog is not to provide advice but to provide information. Sound professional advice should be taken before making any investment decisions. The bank will not be responsible for any tax loss/other loss suffered by a person acting on the above.