Relevance Of Currency Exchange Rate In India For Foreigners

By Author: Nitin Motwani
Total Articles: 12
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Every currency has a different value vis-à-vis another. Several factors govern the purchasing power of a given currency. For an individual, it is important to derive the maximum out of his/her country’s currency. Therefore, foreigners visiting India seek the best currency exchange rates.

The value of the rupee in comparison to certain currencies like the euro, dollar and pounds sterling is much lesser; whereas it is stronger than other currencies such as the Japanese Yen, Indonesian Rupiah etc.. Economic conditions and government policies influence the purchasing power of a currency.

Most foreign visitors to India use plastic to access money; though they do keep cash and travellers’ cheques handy. There are ATMs available at main banks in major cities where with a foreign transaction fee, money can be withdrawn. Credit cards from only certain reputed finance companies are likely to be accepted for payment at hotels, restaurants, airline offices and retail shops.

A big downside for foreigners relying on plastic exclusively is that cards are not accepted at many establishments in India unlike several ...
... other international destinations. This is especially true if one was to visit a smaller town in India.

If a foreigner enters India with over US$10,000 or its equivalent, he/she is required to fill a currency declaration form. In such situations, and even otherwise, it is important to use a reliable currency exchange service that can provide the best currency rates. In India, US dollars are easiest to convert, followed by euros and pounds sterling.

Apart from cash and plastic, travellers’ cheques are also carried by several international travellers. There is a small commission fee that needs to be paid if they are to be converted to Indian Rupees.

Currency exchange in most Indian banks can be a time-consuming process. There are several forms to be filled and counters to be queued up at. It is more convenient to use other currency exchange means that are reliable and convenient. It is also advisable to change large amounts at any one time.

Most licensed currency exchange bureaus offer better exchange rates than banks as well. The transactions here are quicker and involve less waiting time as well. Most currency converter sites reflect interbank rates that are rates at which banks deal with themselves. Foreigners also have the option of exchanging currency at large hotels but that is at a much worse rates.

It makes much more sense to look for a currency exchange service that offers real-time market rates. It is also important for a foreigner that the exchange rate provided be the retail rate, which means that as a customer the individual can actually sell or buy foreign currency at the given rate.

It is clear that there are many variables attached to the currency exchange rate India. The marketplace sees wild fluctuations and there is lack of uniformity in forex products. Whatever instrument a foreigner may use to change money it is important to retain the exchange receipts or encashment certificates as they will be needed while changing back excess rupees on the return leg. They are also handy while purchasing air tickets and train berths at special counters meant for foreigners.

The author of this article is associated with BookMyForex, the reputed first of its kind e-commerce website, conceived with the long-term vision to use its exclusive tie-ups, large distribution network and the internet to create an organized and customer friendly foreign exchange and remittances market in India. At BookMyForex there is the option of booking a transaction at the exact rates shown on the site. These rates are derived from live and real-time market rates that are accurate to the last second. For details, visit bookmyforex.com.