MuthootBlog

Things to Know Before Buying Foreign Currency in India

  • August 21, 2017
  • rootroot

If you are planning to travel to a foreign destination on a vacation or a business trip, you will have to get a lot of things planned out and booked. Once you’ve got the visa and your tickets are booked, the next task to handle is arranging foreign currency. Many travelers make use of their international debit and credit cards as an alternative to converting currency. However, some travelers buy foreign currency notes from banks or other foreign currency exchange centers.

Here are some things that you should remember whenever you buy Forex:

Buy in time

The best practice is to get your foreign currency well before your travel dates. While a week before would be ideal, get it at least three days before your trip Currency rates have very high fluctuations daily, so even if the rates are high, you have the luxury to wait for a couple of days to see if they come down again. Anyway, a last minute rush is never fun.

Airport outlets

You might think that you can just buy foreign currency at the airport; but we’d suggest you avoid that. Exchanging your currency from an airport outlet is going to be very expensive for you compared to other places. The reason behind this is that airport outlets can charge around 10 to 15% as commission. And there will be no possibility for a bargain as this is your last option for currency exchange, before your departure.

The Ratio

Make a budget that gives you a vague idea of how much you will need for your entire trip. Then, get 30% of that amount in cash for the petty expenses (taxi, street food, etc.) and get the rest in a Forex travel card.

International Debit Cards

The debit or credit card that you have is not a travel card. It has money in INR, which when swiped outside India, will be converted to the foreign currency. Your bank might offer you free ATM withdrawals, but some ATM machines deduct a fee of withdrawal when you use international debit cards on them.

Compare

Currency rates don’t just vary from day to day, they also vary from vendor to vendor. Visit at least three vendors to check the Forex rates before you decide where to buy from some vendors also offer home delivery services for your convenience. Check your options before you commit.

Authorization

Most times we aren’t even aware of fake Indian notes; how can we be certain that we are getting genuine foreign currency? That is the reason why you must always be careful when selecting a vendor. Ensure that the vendor has a Money Changing License that has been issued by the Reserve Bank of India; and always insist for a bill for your transactions.

Getting the foreign exchange part done before you leave the country for your vacation is an important part of a hiccup-free trip. Make sure that you are careful with your money, especially if it’s a large amount, which it probably would be.

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