Travelling involves a lot of adventure and exposure to different cultures, foods, and landscapes. But then, one not-so-glam yet very important part of international travel is money management, getting the best exchange rates for your Indian Rupees. In this article, we shall guide you through the top 10 strategies that you can use to get the best foreign exchange rates for all your popular international tourist destinations!
Top 10 Strategies for Getting the Best Exchange Rates:
It may be difficult for you to follow all the strategies, but you can choose the ones that best suit your needs.
Tip #1: Exchange Your Currency Before Travelling:
Since INR, or the Indian rupee, is not a freely tradeable international currency, it is rarely accepted for exchange elsewhere outside India. Hence, exchanging INR for foreign currency is best before you depart the country. This way, you get the benefit of the following:
- Comparing the rates provided by different providers
- Choose the best rates and
- Get denominations of your choice if you opt for currency notes.
In most cases, exchanging money within India gives better rates than you would otherwise get abroad, particularly in these tourist spots where the foreign exchange rate could be against the tourist. In most very popular tourist destinations, you often get bad exchange rates. So, it’s always a good idea to get the basic foreign exchange done in India well before you travel.
Tip #2: Try and Avoid Airport Exchanges or Kiosks
Airports usually offer less favourable rates, partly because of the high rental charges that exchange outlets have to pay. These overheads are often passed down to the consumer through higher exchange rates and added-up fees. If possible, only convert money at the airport if there is a dire necessity. Instead, convert before leaving or use a prepaid forex travel card.
Tip #3: Always opt for RBI-Licensed Money Exchanges
Fake currency is a common phenomenon. So, you need to exchange your money only from RBI-licensed authorised exchanges. Any unauthorised exchange may result in counterfeit money being handed in exchange or conned. Thus, all exchanges should always be made through legally authorised dealers.
The RBI authorised some companies dealing in foreign exchange, and those companies have to work under strict stipulations. Authorised Dealer-II or Fully Fledged Money Changers charge very competitive rates and guarantee the authenticity of the foreign currency you will receive. While the rates offered by some unlicensed exchangers may be slightly more favourable, the risks outweigh the benefits.
Tip #4: Online Rate Comparison:
Do an online search before you go to the money exchanger. Nowadays, several websites facilitate comparing foreign exchange rates from different RBI-licensed money changers operating in your vicinity. The comparative rates available on these websites ensure you are getting the best deal available. Some of these websites even allow you to book your currency online; this would lock in a favourable rate and save you time.
Always get a mix of denominations when you buy foreign currency. This will help make day-to-day transactions easier and avoid situations in which you may overpay because you cannot obtain change for bigger bills. For example, a mixed denomination will be of good help in tipping, paying for taxi rides, or making very small purchases.
Tip #5: Know Your KYC Requirements
In India, you would need to provide some KYC documents to purchase foreign currency. This generally includes an Indian passport, a valid visa (if applicable), confirmed air tickets showing travel within the next 60 days, a PAN card, and a government-issued photo ID, such as Aadhaar, Voter ID, or a driving license. Just ensure that you have these documents ready to ensure hassle-free transaction processing.
Tip #6: Opt for Doorstep Delivery
If you are pressed for time, most online foreign exchange platforms will deliver your money to your doorstep. Place your foreign currency order online and get it at your doorstep, often on the same day. Such convenience can save you the nuisance of visiting a physical exchange location if you are too busy with last-minute travelling preparations. Also, there is no stress of losing the currency in transit.
Tip #7: Opt for the local currency:
While some countries accept dual currencies like the US Dollar and their local currency, it is wise to always pay in the local currency to get a better foreign exchange rate. Some local merchants often impose steep foreign exchange fees when you use foreign currency, and they might suggest that paying in another currency simplifies expense tracking. However, sticking to the local currency helps you avoid hidden fees and ensures you get the most accurate conversion rate, steering clear of dynamic currency exchange traps.
Also, you could bargain and get a much better deal if you are out for local shopping, etc., if you pay in the local currency!
Tip #8: Be cautious about hotel exchanges:
Although some foreign hotels may change money, their rates are not as good as those you will get from most banks or authorised money changers. Also, some hotels may not have much currency on hand and could not change a large amount. Exchange your money at a bank whenever possible, withdraw local currency from an ATM, if needed, or pay from your prepaid traveller’s card.
Tip #9: Observe the 30/70 Rule:
One common rule of thumb is to carry 30% of your travel money in cash and load the other 70% onto a prepaid foreign exchange card. This way, cash is always on hand for petty expenses or if it’s required in case of urgency, and the bulk of the funds remain safe.
Forex Cards are widely accepted in most tourist locations- ATMs, restaurants, hotels, and shops – worldwide and generally offer better exchange rates than currency exchangers.
Tip #10: Keep Your International Debit/Credit Card as a Backup:
Always carry an international debit or credit card as a backup; these can be real lifesavers if the primary method fails. Most international cards also come with travel privileges, such as access to airport lounges, which make the entire travel experience much better.
Remember to inform the bank about your travel plans and turn on international transactions through the card before leaving.
In a nutshell:
It’s not too hard to get the best foreign exchange rate as an Indian traveller, though it requires some planning. From changing money before you go through authorised dealers and availing of the online tools available to compare rates, be sure you’re getting the maximum value for your money. You might also become more flexible and secure during your entire travelling range by using a combination of cash, forex cards, and international debit/credit cards. With these tips in hand, you can go ahead and enjoy your trip without worrying about whether you will be stuck with a bad foreign exchange rate or you will be ripped off with fees.
(This article is part of IndiaDotCom Pvt Lt’s sponsored feature, a paid publication programme. IDPL claims no editorial involvement and assumes no responsibility or liability for any errors or omissions in the content of the article.)
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