Nowadays, exchanging currency has become very convenient and hassle-free. However, many people are still stuck with a question in their mind- How to buy currency in India? Well, there are many ways available through which you can purchase foreign currency in India in exchange with INR. Whether you are an international student going abroad, or an NRI returning to India, the process of exchanging currency is the same. Popular ways of exchanging currency in India include banks, RBI-approved money changers, online forex service platforms, and airports. In this blog, we will discuss how an individual can buy currency in India.
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Also Read: If you are travelling back to India from a foreign land, check our blog on How to Exchange Foreign Currency for Indian Rupees
Different Ways to Buy Currency in India
Before departing on your international trip to study abroad, leisure travel, or a business tour, knowing about the different ways to exchange currency is important. In this section, we will learn about currency exchange through banks, RBI-approved money changers, online forex service providers and airport currency exchange. We will also explore the advantages of these different ways to buy currency in India.
Currency Exchange through Indian Banks
The best way to buy currency in India is with RBI-approved Indian Banks. They offer the most secure approach for all financial transactions at the best competitive currency exchange rates. You can simply visit the bank’s branch and carry your passport and visa for identity verification.
You will be required to complete a currency declaration form providing the details stating the aggregate value of foreign currency notes exchanged. Some of the leading banks in India providing the best currency exchange services are the SBI, HDFC Bank, ICICI Bank, Axis Bank, Standard Chartered Bank, and Kotak Mahindra Bank.
Here are some benefits of exchanging foreign currency with Indian Banks-
- Exchanging currency with Indian Banks is secure. They prioritize the safety of transactions to reduce the risks of counterfeit/ fake currency.
- You get access to a wide range of currencies to be exchanged. HDFC Bank allows you to buy foreign cash in 22 different currencies.
- Banks offer transparency with their rates and charge no hidden fees.
- Most of the banks offer online options to exchange currency and get it delivered to the doorstep, though shipping charges may be involved.
- They offer additional services like prepaid travel cards and the cheapest Forex cards for international students.
RBI-approved Money Changers
Another way to buy currency in India is through RBI-approved private money changers (offline providers). Make sure that you only exchange currency with them if they have a Full-Fledged Money Changer License. This is a necessary requirement under Section 10 (1) of the Foreign Exchange Management Act (FEMA). 106 trusted RBI-approved authorized dealers in India at different locations are licensed to provide these services. You can find the list of them on their official website.
You just need to present certain KYC documents, a passport, and your visa for identification purposes to exchange currency.
One of the major benefits of exchanging currencies with them is that they ensure a trustworthy exchange process as they fulfil regulatory compliance and adhere to the regulations of the RBI. Other benefits include-
- They do not require you to open an account with them.
- They offer competitive exchange rates, maximising the value of your foreign currency.
- They are located at convenient locations offering a wider accessibility to customers to provide foreign exchange services.
- The RBI-approved money changers are known for quick transactions.
Online Forex Service Providers
Online forex service providers have become a popular choice for exchanging currency in India. You need to choose a reputable forex provider and register on the platform by creating an account. The KYC process needs to be completed by submitting the required documents online. After that, you need to choose the foreign currency you wish to exchange and enter the amount.
Some of the benefits of exchanging currency with them are-
- Online forex providers operate 24/7 offering ease of accessibility.
- They utilize secure payment gateways to ensure safe financial transactions.
- They provide quicker processing and prompt currency exchange services.
Also Read: Learn about the cheapest ways to exchange currency that lets you avail the best exchange rates when your travel plans take you abroad.
Currency Exchange at Indian Airports
Currency exchange in India can also be done at airports. However, the airport currency exchange rates are very high. They do not offer competitive exchange rates because fewer options are available for the customers at the airport. Exchange rate fluctuations are another disadvantage at airports and travellers might not get the most favourable rates, unlike banks. All these reasons make airports one of the least preferred places to exchange currency. However, it does offer certain benefits like-
- Services are readily available at airports making currency exchange much easier and accessible, and providing you options for last-minute currency exchange.
- Many airports provide 24/7 currency exchange services, accommodating travellers arriving or departing at any time.
Note: Always know about how much cash you can abroad legally when exchanging currency with any provider in India.
FAQs on How to Buy Currency in India
Popular ways of exchanging currency in India include banks, RBI-approved money changers, online forex service platforms, and airports.
Some of the leading banks in India providing the best currency exchange services are the SBI, HDFC Bank, ICICI Bank, Axis Bank, Standard Chartered Bank, and Kotak Mahindra Bank.
Firstly, you need to find a trusted RBI-approved authorized dealer in India on their official website and then present certain KYC documents, a passport, and your visa for identification purposes to exchange currency.
You can visit the bank branch or the trusted money-changing provider online or offline and present KYC documents for verification purposes to exchange currency in India.
The airport currency exchange rates are very high. They also do not offer competitive exchange rates because fewer options are available for the customers at the airport. Exchange rate fluctuations are another disadvantage at airports and travellers might not get the most favourable rates. Thus, one should not consider currency exchange at airports in India or anywhere in the world until and unless you are left with no other options.
This was all about how to buy currency in India. To know about education loans, the loan application process, the best international bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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