Whether you are interested in selling foreign currency or are looking to buy forex, there are a few factors you must keep in mind. While the procedure is quite simple, it does require certain documents to exchange currency in India. If you wish to exchange currency in India, here are the best ways to do that:
Exchange Foreign Currency In Indian Banks
You can visit a bank where you hold an account with the foreign currency you wish to sell. You would not be able to conduct an exchange in a bank where you do not have an account. You need to inquire about the foreign exchange rate of the foreign currency. Once that is done, ask about the service fee that your bank will charge. Proceed with the exchange if you are satisfied with the rate. If you decide to complete the exchange in the bank, then you can simply submit the required documents and carry on.
Sell Foreign Currency In India With RBI Approved Money Changers
If you are not satisfied by the rate charged by the bank and are interested in better rates, then you can approach RBI approved money changers. These money changers must be holding “Authorised Dealers Category-II or Full Fledged Money Changers (FFMCs) licence”.
The advantage that they offer is that you do not need to have an account with them in order to sell foreign currency, and they are more competitive than banks. This means that they would be willing to offer attractive exchange rates in order to attract customers. The procedure here remains the same as banks. Once you initiate your sell currency transaction and the total amount is below Rs 50,000, you will have the option to receive the money as cash. Otherwise, the money changer can directly deposit the money into your bank account or give a cheque for the amount. Money changers such as Unimoni are a safe bet when considering this option.
Comparing Exchange Rates
The exchange rate offered for your currency is one of the most important factors to consider when you deal with foreign exchange or send money abroad. You must compare the exchange rates and service fees charged by both your bank and money changer. By doing this, you will be able to approach the institution that gives you the best exchange rates and can sell your foreign currency there for a higher amount of rupee.
Documents Required for Money Exchange
When you sell foreign exchange through your bank or money changer, you will be required to submit KYC or know your customer documents. This is mandated by RBI rules. The documents that are required include:
- Indian Passport (Mandatory for transactions above Rs.25,000)
- Copy of your Driving License
- Voters ID
- Aadhar Card
- PAN Card (If required)
Only trust reliable sources such as Unimoni and don’t forget to carry all your documents when you buy forex in India.
Whether you are exchanging currency for the first time or have done before, following the above steps will certainly help in easy exchange of foreign currency in India.