10 Eye-opening Facts about Foreign Exchange That You Should Know
Preparing for a foreign tour often turns out to be a nerve-wracking experience due to all the preparations you need to get done on time, especially if it’s your first international flight. There is an endless list of apprehensions and doubts crossing your mind every now and then, and you have a difficult time making your way through it all.
If you are in a similar situation now, here are 10 eye-opening facts that you have to know before you get your foreign exchange done.
1. Using your Debit or Credit Card abroad attracts astonishingly high charges
Swiping your International Debit and Credit Card during your foreign tour turns out to be an expensive proposition. This is because of the host of charges that are levied on each of your transactions -Foreign ATM Withdrawal, your bank fees, card platform provider fees like VISA, MasterCard and RuPay, etc.
2. Traveler’s cheques are a story of the past
The acceptance of traveler’s cheques has reduced considerably and the number is rapidly dwindling further. This is because using these cheques is also a costly affair since you will be charged anywhere between 3% and 5% on every transaction.
3. Opting for foreign exchange at the airport is a big no-no
Be it cash or Forex Card, it is a bad decision to buy and sell currency at airports where cash and forex exchange fees vary between 5% and 10%. Keep exchanging at airports as the last resort, to be considered only in emergency situations.
4. There’s no avoiding selling your leftover currency
It is mandatory to encash your leftover currency after your tour because holding on to it is illegal, and can lead to penalization or a jail term. Only low-value currency can be retained as souvenirs.
5. Money changers score over banks in international money transfers
Banks usually charge higher fees for transfer of money from overseas as compared to money changers. Added to the higher fees is the hassle of completing complex paperwork. As a result, money changers again emerge as a better option as far as ease of doing business is concerned.
6. Money can be transferred to backup Forex Cards
The currency from Prepaid Forex Travel Cards can be transferred to the secondary card that is usually provided with every primary card. This proves to be of great help on the damage or loss of the card. Under such a situation, the primary card is deactivated and the balance amount is transferred to the backup card.
7. Opting for an RBI authorized foreign exchange dealer is a smart move
The importance of opting for a dealer with RBI authorization cannot be stressed enough. This ensures that your dealer has the necessary license from RBI, enabling ensuring you avoid fraudulent activities at all costs.
8. Foreign exchange needs of an Indian resident on a trip abroad can be taken by family members and relatives
RBI allows Indian citizens to be financed by family members and close relatives, like parents, spouse, siblings, in-laws, and children, when need be. This provision bails out Indian citizens during emergencies like loss or shortfall of money.
9. Foreign exchange can be done 6 months before you fly abroad
The common perception of several people is that currency exchange can be done not more a month prior to the date of taking the flight abroad. Whereas, according to the regulations set by RBI, currency exchange can be done 180 days before the day of travel, provided necessary documents are in place.
10. Buying and selling Forex is a time-consuming and hassled process
As opposed to the popular myth, getting a Forex Travel Card simplifies the process of currency exchange. They are available through the online application right from the comforts of your home. Not just that, existing exchange rates will be considered for all your future transactions abroad, without any chance of fluctuations.
Flying abroad soon and would like to opt for a Forex Card? Or, have queries about it? We are just a call or a few clicks away. Get in touch with our expert representatives on +91 7303401234.
