Foreign Exchange Instruments You Can Use In India

By Author: Nitin Motwani
Total Articles: 12
Comment this article

Foreign exchange services are vital for international travellers and businessmen trading across continents. If you too belong to the category of international travellers or global tradesmen then choose your financial products carefully amidst the several options available.

Cash is important as it is required for small purchases at local shops which may not have the infrastructure to deal in cards or traveller’s cheques. As a tourist nobody would like to deny themselves the opportunity to buy goodies from the fabulous flea markets.

Any visit to India is incomplete without travelling in the varied local systems of transportation like cycle rickshaws, auto rickshaws and metro trains. Having ready cash helps here.

Currency notes are however an insecure way of carrying money due to the threat of loss, counterfeits or theft. Crime has risen globally and first time travellers are especially vulnerable to fraud.

There are distinct advantages to an instrument like prepaid travel foreign currency cards. It is a much more secure way of carrying currency. If you happen to lose or have a prepaid ...
... travel foreign currency card stolen, it is completely replaceable.

You will mostly get prepaid travel foreign currency cards at higher rates than either hard currency notes or traveller’s cheques. This prepaid card will typically be a VISA/Master card just like a common debit or credit card.

Prepaid travel foreign currency cards provide additional benefits like withdrawing cash from ATMs worldwide. You can use your prepaid card easily for personal or business transactions in most countries, including India.

A prepaid card will not only come with the insurance cover but give you the advantage of being able to re-load it at any time you need extra currency.

A prepaid travel foreign currency card will have a pin code that you must keep secure at all times. It will also stipulate a configurable spending limit. This makes carrying it safer and simpler in the unpredictable circumstances of a long or flexible trip.

Unlike debit or credit cards, a prepaid card is Forex loaded on a fixed rate, making it less vulnerable to variable exchange rates.

When you use your prepaid travel card there will be no need to pay a 2% to 5% transaction fee which is commonly levied on the use of international debit and credit cards.

Demand drafts too are extremely popular as a foreign currency instrument. DDs are convenient and often used for sending money overseas.

A Demand Draft is quite secure and private because it is issued by the sender’s bank account in favour of the beneficiary. This ensures a guaranteed and secure payment. While sending money through a DD you will need to supply some important personal details of the beneficiary.

Another quick, efficient and reliable means is Wire Transfers. The term wire transfer refers to transferring money electronically. The transfer takes place between bank accounts located in separate countries.

In comparison to prepaid travel cards, traveller’s cheques are losing sheen. This financial instrument has to be signed two times by you in order to use. You will need to sign the traveller’s cheques first when they are initially delivered and second when you actually use them.

Much like cash, traveller’s cheques are unsafe for using and therefore are facing a dip in their popularity. They are increasingly being rejected by foreign establishments making them lose favour.

To get a good currency exchange rate India , do keep updated with the volatile markets and use the services of a reliable foreign exchange facilitator providing real-time rates.

The author of this article is associated with Bookmyforex.Com , pioneering 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.