How to exchange foreign currency when you are travelling to India?
If you have no clue how to go about doing it, let us look at the various ways of currency exchange for NRIs in India.
Any individual is permitted to bring in foreign currency into India. However, there are a few restrictions imposed on the amount.
You must declare foreign currency to the Indian Customs authorities using the Currency Declaration Form if you bring more than USD 5,000 cash or its equivalent in another currency or is more than USD 10,000 or its equivalent in any other currency either in cash, a forex card or traveller’s cheques.
- Exchange through banks:
You could exchange your foreign currency in the Indian bank where you have opened aNRO Account. For instance, HDFC Bank provides this walk-in facility to all its NRI clients in the form ofNRI bankingservices. The bank charges a nominal transaction fee. At times for verification purposes, the bank may ask for identity proof and address proof. If you carry out a currency exchange in India in this way, the Know Your Customer (KYC) requirements should be up-to-date.
- Approved money exchangers:
Another way to exchange your money in India is through a RBI-approved money changer who either is an Authorised Dealer Category II or has aFull Fledged Money Changers licence.
The advantages of these approved money exchanges are that you do not need to have an account with them to sell your foreign currency. Since they are lots of dealers compared to banks, they may offer competitive exchange rates. There is a wide range of options, so you can choose a money changer that offers the best price. However, you may need to provide certain documents to verify your NRI status and carry out the transaction.
- Direct money transfers:
Nowadays, banks offer the facility to transfer direct funds to your home country before commencement of your travel. Using NetBanking and MobileBanking, it is easier to transfer money from one bank account to another.
- Comparison of exchange rates:
This is an essential point an NRI should keep in mind for foreign currency exchange in India. Before you begin your travel to India, you should compare the exchange rates and service fees charged by the banks and money changers. By doing this, you will be able to find the best option for you and get the best value for your currency.
You’ll need any one of these documents for sale of foreign currency in India:
- Indian passport -- this is obligatory for any transaction over INR 25,000
- PAN card
- Aadhaar card
- Copy of driving license
- Overseas address proof (utility bill, foreign driving licence, etc.)
These are some of the things an NRI should know about how to exchange currency in India.
Looking to open anNRI Account? Click here to get started!
Migrating to India soon? Read more on how to change yourNRI investments in India.
* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circ*mstances.
FAQs
Exchange through banks:
What documents are required to exchange foreign currency in India? ›
Documents required for exchange currency in India
- Indian Passport.
- Confirmed Air Ticket indicating travel within 60 days.
- PAN Card.
- Valid Visa (mandatory for certain countries)
What are the rules for currency exchange in India? ›
RBI allow remittance of up to USD 25,000 per calendar year. You can remit in foreign currency for an RBI-approved purpose. You can buy FOREX up to USD 25,000 only. If you bring FOREX beyond a specified limit to India, you must declare it.
What is the best way to exchange currency in India? ›
Through an ATM -
An ATM is the most convenient way to convert currencies in India. To make the necessary withdrawal, you could utilize your ATM Debit Card from your country of residence. When using your ATM card abroad, banks may impose a service fee as well as an exchange rate transaction cost.
How much Indian currency can NRI carry to India? ›
Import of Indian Currency is prohibited. However, in the case of passengers normally resident in India who are returning from a visit abroad, import of Indian Currency upto Rs. Rs. 25,000/- is allowed.
Which bank is best for currency exchange in India? ›
SBM Bank India brings you the best forex rates. Backed by the most reliable leading currency rate providers around the globe, enjoy competitive forex rates like no other.
What documents are needed to exchange money? ›
- You'll be able to collect major currencies from us immediately at any forex outlet. ...
- We'll need to see your ID, passport and travel ticket.
Should I exchange money before I travel to India? ›
Carry some cash with you at the start of your trip
This means you'll need to deal with currency exchange once you arrive, as opposed to beforehand. So, it's a good idea to have some cash on you (in pounds) when you arrive in India, in case you can't find an ATM. This means you can head straight to a currency exchange.
How many dollars can I bring into India? ›
There's no limit, however, to how much foreign currency you can bring into India. Although, you will have to declare it if the amount exceeds US$5,000 in notes and coins, or US$10,000 in notes, coins, and traveller's cheques².
Can you use US dollars in India? ›
Tip: The US dollar is also widely accepted in India, but it is still recommended to get some rupees in small denominations which can be used in remote areas where the US dollar may not be accepted.
Local banks and credit unions usually offer the best rates. Major banks, such as Chase or Bank of America, often offer the added benefit of having ATMs overseas. Online peer-to-peer foreign currency exchanges. Online bureaus or currency converters, such as Travelex, provide convenient foreign exchange services.
How to change dollars to rupees in India? ›
There are multiple ways to convert USD to INR in India for example, at your local bank branch, at airports, offline money changers, or online via reputed forex platforms like BookMyForex. Having to run to a bank or an offline money changer every time you want to convert currency isn't convenient.
What is the cheapest way to transfer USD to India? ›
Bank transfers are usually the cheapest option when it comes to funding your international money transfer with Wise. Bank transfers can be slower than debit or credit cards, but they usually give you the best value for your money.
How much cash can you carry on a plane in India? ›
As per the Reserve Bank of India (RBI), Indian residents are allowed to carry cash up to Rs. 25,000 (approx. $350) while travelling within the country. These guidelines establish legal limits on how much cash can be carried on domestic flights for both residents and non-residents while entering or leaving the country.
Can NRI have dollar account in India? ›
NRI customers need an account which can be maintained in a currency other than Indian Rupees. To cater to this need, a Foreign Currency Account is created for safe parking of their earnings in Foreign Currency.
Can NRI bring money from India? ›
The RBI must give its clearance before an NRI can transfer money to or from an NRO account outside of India. The RBI has given authorized dealer banks, or banks that provide or open NRO accounts for NRIs, the authority to permit the making of such remittances, subject to certain documentation and other restrictions.
Do you need passport to exchange money in India? ›
Passport and PAN card are mandatory for transactions above Rs. 25000. For forex sell transactions above USD 5,000 or it's equivalent in others currencies, foreigners/NRIs have to produce the currency declaration form (CDF) form which can be obtained from Airport Customs Authorities.
What are the requirements for currency exchange reporting? ›
Federal law requires financial institutions to report currency (cash or coin) transactions over $10,000 conducted by, or on behalf of, one person, as well as multiple currency transactions that aggregate to be over $10,000 in a single day. These transactions are reported on Currency Transaction Reports (CTRs).
What documents are required for currency exchange in SBI? ›
How can I exchange foreign currency in SBI?
- Valid Indian Drivers License.
- Indian Passport.
- Pan Card.
- Aadhaar.
- You may also require to provide verification of upcoming travel plans.