Exchange Foreign Currency in India: a Guide

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

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Key Takeaways:

You can exchange foreign currency in India using various convenient modes. Some popular options to consider for foreign currency exchange include banks, airports, RBI-approved money changers, ATMs, and forex service platforms. You must submit copies of your passport, Visa, identity and address proof, along with confirmed air-tickets to obtain forex.

Whether you are a tourist travelling to India, or a Non-Resident Indian (NRI) returning home with foreign currency, you may need to convert foreign currency to Indian rupees to manage your expenses here. Thankfully, currency conversion in India has become incredibly convenient. Today, various currency exchange providers let you convert your foreign currency. If you are confused about the process and want to know how to change the currency in India, this article is for you.

How to Exchange Currency in India?

The different ways in which you can exchange foreign currency in India include the following:

• 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 NRO 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 a designated currency exchange counter. These are ideal for last-minute exchange or buying of foreign currency. Since exchanging foreign currency is convenient at airports, it may attract a higher commission and currency exchange rate. Hence, it is better to choose exchange currency at airports only if you are in a hurry.

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. These money changers make it easy to exchange foreign currency in India, whether you're in a major city or a small town.

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.

Things NRI should know about how to Exchange Currency in India

Documents Required:

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
• 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 Currency

• Compare Exchange Rates – Always check currency exchange rates from different sources to get the best value.
• Transaction Limits – Certain limits apply to the amount of forex you can buy or sell.
• 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 we 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 can deposit foreign currency in an FCNR account (for NRIs) or an RFC account (for returning NRIs). Some banks may allow deposits in NRO accounts, subject to RBI rules.

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

   Yes, residents can hold foreign currency up to a specified limit. Larger amounts must be declared and deposited in a foreign currency account per RBI regulations.

*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.