Here’s how to exchange foreign currency in India – A beginner’s guide
Whether you’re planning to travel abroad or returning from your international trip, the foreign exchange should be your top priority. Most business or leisurely trips require you to convert the currency reliably for the country you’re traveling to. And there are different sources of foreign exchange in India. prune which helps enable the transaction. These are banks, airports, online platforms, and money vendors.
However, it can be an expensive and time-consuming process. So what exactly is foreign exchange, and what is the best way to do it? We have put together everything you need to know about buying and selling foreign currency. Read on!
What is foreign exchange?
Foreign exchange is the process of exchanging one currency for another. In other words, foreign exchange is common between two countries, where one country’s currency is exchanged with another country’s currency. It is commonly known as Forex. Foreign Exchange Market is a market where buyers and sellers are engaged in buying, selling, and exchanging currencies of different countries (e.g., US Dollar, Euro, Pound, Japanese Yen, etc.).
Factors Affecting Foreign Exchange Rates
The value of any currency is determined by market forces based on tourism, trade, investment, and political decision.
Supply and demand are the two most important forces determining currency value. If more people want to buy a certain currency than sell it, then its value will go up. If more people wanted to sell that same currency than buy it, then its value will go down.
Equally important to the supply and demand equation is how easily those transactions can be made. For example, if many tourists want to buy a certain country’s currency but few sellers are available to meet that demand, then that would put upward pressure on that currency’s value. That’s why currencies are traded in enormous volumes on electronic exchanges so that buyers and sellers can be matched in real-time 24 hours a day during weekdays.
Foreign currency can be divided into two categories. These are buying foreign currency and selling foreign currency. To buy foreign currency: When you’re planning a vacation or business trip in another country, you need the currency of that destination for your expenses. It could mean converting rupees to yen, dollars, or pounds.
To sell foreign exchange: When you return from your trip, you will need to exchange the foreign currency with Indian rupees before it becomes non-convertible due to rules and regulations. There’s generally a limited time slot to exchange soon after your return.
What are the options for currency exchange in India?
There are several options available in India for foreign exchange. These could range from Indian banks to money vendors.
Indian banks – Commercial banks are popular ways to exchange currency as they are a trusted source and help prevent fraudulent activities. However, forex is not their primary service, and they could charge a hefty amount for the transaction. Their profit margin is usually large with high exchange rates, making it a less attractive option in the forex market.
Airports – Airport counters are yet another popular way to convert currency, especially when you’re on the go or running late during your travel. But this reason makes it an expensive option, making you pay almost thrice the amount you would have generally paid on an online platform.
Authorized money vendors – Several RBI-approved money vendors offer better exchange rates on currency transactions than banks and airports. They offer services in most of the big cities and small towns. But do make sure that they are licensed before taking up their services.
Online platforms – The most reliable way to exchange your currency is using the online platforms from the comfort of your home. They operate 24/7 via app and website and offer the best deals. Their services are fast and cheaper as compared to the other options. You can even check the live exchange rates directly on the platform before booking a service.
What are the documents needed for currency exchange?
When you’re looking to buy or sell foreign currency, you need KYC documentation to take the process forward. The regulated banks and money vendors will ask for these documents:
- PAN Card
- Aadhar Card
- Driving license
- Voters ID
- Travel tickets
If you’re looking for the best online platform for foreign exchange, Prune is a trusted option among its customers. It provides secure and fast transactions round-the-clock. And the team keeps a live track of the exchange rates so that you get the most attractive deal in the market. Here are the benefits of using Prune to exchange foreign currency:
Best exchange rates: Exchange rates can vary from banks to money vendors. And they usually charge a higher exchange rate making the transaction expensive. But Prune offers the best exchange rate with high-quality services on the app and website.
Online order facility: Enjoy an easy currency exchange process from your home or office. With Prune as your trusted service provider, you need not go through the hassle of visiting the banks and waiting in long queues. Follow the few simple steps on the app and website, and your forex order is complete.
Doorstep delivery: After you book a forex order with Prune, the team will deliver the currency in just two to three days.
Better rate request: You can raise a request if you’re seeking better exchange rates than what is offered on the online platform. The 24/7 customer support will assist you with the best exchange rates. Download the Prune app or visit the website to use the forex services !
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