Jazmin Li
Indian airports offer foreign exchange services for last-minute exchanges, but they may charge higher fees and unfavourable exchange rates. It is recommended to compare rates before exchanging currency, and to use authorised money changers. Forex cards are a popular alternative to airport exchanges, offering lower conversion charges and ease of use.
| Characteristics | Values |
|---|---|
| Currency exchange at airports | Common practice, but expensive |
| Forex cards | Popular alternative to airport exchange |
| Niyo Global card | No issuance or loading/unloading charges, up to 7.5% interest on the balance amount |
| Best option | Compare rates before exchanging currency |
| Currency exchange in India | Banks, RBI-approved money changers, ATMs, forex service platforms, airports |
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What You'll Learn
Forex cards vs airport exchange rates
Airports are a convenient place to exchange currency, especially if you have leftover cash from your travels that you want to convert back to your local currency. However, airport currency exchange rates are notoriously bad and typically come with high markups and additional service fees. You can expect to pay around 10-15% more than the market rate when exchanging currency at the airport.
Forex cards are a good alternative to airport exchanges. They are safer than carrying cash, as they are protected by an electronic signature and PIN, and are widely accepted worldwide. Forex cards can be used at ATMs and stores, and you don't have to worry about exchange rates as the card is pre-loaded with the currency of your destination. They also allow you to carry multiple currencies and track your spending.
However, forex cards do require some advance planning as you need to order them beforehand. They also typically come with some fees, such as loading fees, transaction fees, and inactivity fees, so it is important to compare cards and choose one with competitive fees that suit your travel plans.
Overall, forex cards are generally a cheaper and more convenient option than airport exchanges, especially considering the poor exchange rates and high fees associated with exchanging currency at the airport.
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Airports for last-minute exchanges
If you're in a hurry and need to exchange currency at the last minute, you can do so at most international airports in India. Airports, in general, are a common place to exchange currency, and this is a widely available option for travellers.
However, it is worth noting that airport currency exchange rates are often higher than other options. They typically charge between 10%-12% more than the value of the amount, and there may be extra fees and additional exchange charges. As such, it is recommended to only use airport currency exchange services if you are in a hurry.
There are several alternatives to exchanging currency at the airport, which may offer better rates and lower fees. These include:
- Banks: Banks are a reliable and secure option, offering competitive exchange rates and customer support. You can exchange currency at a bank branch or use their digital services.
- RBI-licensed money changers: Licensed money changers are a convenient alternative, offering good rates and not always requiring a bank account.
- Forex cards: Forex cards are a popular alternative, functioning like a debit card. They are pre-loaded with the currency of your destination country, so you don't have to worry about the exchange rate. They also offer lower conversion charges than airport exchanges.
- ATMs: You can also withdraw cash in the local currency using your regular ATM card. However, banks may levy additional charges for this service.
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Banks for exchanging currency
Exchanging currency at the airport is a widely practised option for travellers. However, it is not the most cost-effective option. Airport currency exchanges are known to charge between 10% to 12% more than the actual value, along with extra fees and high exchange charges.
Banks are a more reliable option for exchanging currency. They offer convenient and inexpensive currency exchange services. It is advisable to contact your bank and credit card companies and inform them of your travel plans. This ensures that your account is not blocked due to concerns of fraud when you use your card abroad. Banks also provide better exchange rates than airport kiosks. For instance, if your bank offers an exchange rate of £72 per $100, the airport kiosk may offer £67 per $100, which means you get fewer pounds for your dollars.
Additionally, you can use your bank's ATMs overseas to withdraw money in the local currency. This option is more cost-effective than exchanging currency at the airport. However, banks may limit the amount of cash you can withdraw from an ATM each day, and this amount varies by institution and account type.
If you are unable to obtain foreign currency from your bank before your trip, you can use an airport kiosk as a last resort. While airport kiosks are convenient, their exchange rates are typically less favourable than those offered by banks.
In summary, while exchanging currency at the airport is a common practice, it is not the most economical option due to high fees and unfavourable exchange rates. Banks provide a better alternative, offering convenient and inexpensive currency exchange services, both before and after your trip.
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ATM withdrawals
Indian law prohibits foreigners from bringing Indian currency into the country. This means that you cannot buy Indian rupees before your trip and must obtain them once you arrive in India.
ATMs are a straightforward and recommended option for obtaining Indian rupees upon arrival. They are widely available in India, including at major airports, large cities, and tourist hotspots. You will be able to withdraw rupees directly from an ATM at the airport upon arrival.
It is important to note that fees are typically charged for ATM withdrawals in India. These fees can vary between INR 150 and INR 300 per transaction. ATMs that charge fees should inform you and give you the option to cancel the transaction before incurring any charges. Additionally, your home bank may charge fees for ATM withdrawals, including an ATM withdrawal fee and a foreign transaction fee. Therefore, it is advisable to check with your bank to understand the applicable fees.
When using an ATM in India, it is recommended to opt for withdrawals in the local currency (rupees) rather than your home currency. Withdrawing in rupees will provide you with the mid-market rate, which is the best exchange rate available. If you choose to withdraw in your home currency, the ATM may use dynamic currency conversion, which often results in unfavourable exchange rates.
To locate ATMs in India that accept your card, you can use online ATM locators provided by Visa, MasterCard, or Amex, depending on your card network. It is also advisable to inform your bank about your travel plans to avoid any issues with your transactions being flagged as suspicious.
While ATMs are readily available in major airports and cities, their distribution becomes less even in rural areas. Therefore, it is advisable to plan ahead to ensure access to cash during your travels in lesser-known or rural locations.
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Online exchange
While it is possible to exchange currency at the airport, it is advisable to only exchange a small amount of rupees for immediate needs, as exchange rates can be unfavourable.
Online forex platforms offer a convenient alternative to exchanging currency at the airport. These platforms allow you to compare rates from various providers and choose the best deal. You can input your desired currency and collect cash from local authorised vendors. It is important to only use RBI-approved money changers to avoid fraud and ensure you are getting genuine currency.
In addition to online forex platforms, some major US banks offer currency exchange services for customers, covering a broad range of foreign currencies. However, you may need an active checking account with the bank to access this service, and you will likely need to order your currency in advance.
It is recommended to plan ahead and exchange your currency before travelling, as this will give you time to research and find the most favourable rates. You can use online resources or exchange apps to compare rates and choose the best option for your trip.
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Frequently asked questions
Yes, currency exchange services are available at almost all Indian airports.
Exchanging currency at the airport is ideal for last-minute exchanges. It is also a convenient option as it may be done without a bank account.
Airport currency exchanges come with extra fees and high exchange charges. They offer poor exchange rates and may attract a higher commission.
Some popular alternatives include using a Forex card, exchanging currency at banks or RBI-approved money changers, and withdrawing cash from ATMs.
You will typically need to submit copies of your passport, visa, identity and address proof, along with confirmed air tickets. For transactions exceeding ₹25,000, an Indian passport is mandatory.
