10 Essential Tips for Buying Foreign Currency Before Travelling Abroad
Listen to this Articles
Travelling abroad is an exciting adventure that many of us eagerly anticipate, whether it's a backpacking journey through Europe or a relaxing beach vacation in Southeast Asia. However, one crucial aspect that should not be overlooked is buying foreign currency for your trip. It is essential to ensure that you handle this task correctly, as it can greatly impact your overall travel experience. The last thing you want is to incur excessive conversion fees or fall victim to unlicensed money exchanges, potentially leading to legal complications. To help you make the most out of your currency exchange, here are ten valuable tips to consider:
1. Exchange Currency before Flying Abroad
The Indian rupee is not widely accepted as a global currency for exchange purposes outside of India. To avoid inconvenience and unfavorable exchange rates, it is advisable to convert your currency to the desired foreign currency within India before your departure.
2. Purchase from Licensed Money Exchanges
When buying foreign currency, it is crucial to engage only with authorized money exchange companies possessing an RBI Authorized Dealer-II or Fully Fledged Money Changer license. While unlicensed agents or stores may offer seemingly cheaper rates, there is a significant risk of receiving counterfeit foreign currency notes from them. Possessing counterfeit currency abroad without a valid bill of exchange can lead to severe legal consequences.
3. Conduct Thorough Online Research and Choose the Best Deal
Numerous websites allow you to compare foreign currency exchange rates offered by RBI-licensed money exchanges in your vicinity. Take advantage of these platforms to evaluate exchange rates and the overall cost of purchasing forex. Through careful research, you can identify the best deal that suits your needs.
4. Request Various Denominations
When acquiring foreign currency for your trip, it is wise to request a variety of denominations. This strategy enables you to make purchases more conveniently and reduces the risk of overpaying for small items due to a lack of change.
5. Familiarize Yourself with KYC Document Requirements
As per RBI regulations, every resident Indian must possess specific KYC documents to purchase foreign currency within India. These documents include an Indian passport, valid visa (if applicable), confirmed air ticket (indicating travel within 60 days), PAN card, and a government-issued photo ID proof such as Aadhaar, voter's ID, or driver's license. To ensure a hassle-free transaction, remember to bring along these documents when exchanging currency.
6. Consider Ordering Foreign Currency for Home Delivery
If you are pressed for time or find it more convenient, you can opt for home delivery of foreign currency, similar to ordering groceries or other items online. Several websites, such as ExTravelMoney.com, EbixCash, and Thomas Cook, offer same-day delivery services. Choosing doorstep delivery can save you time and simplify your travel preparations.
7. Avoid Currency Exchange at the Airport
It is advisable to refrain from exchanging currency at the airport, as this can prove to be a costly mistake. If you have ever purchased a cup of coffee at an airport, you are likely aware of the inflated prices charged there. This is primarily due to the high rental fees imposed on shops operating within airport premises. Consequently, these shops pass on the additional costs to customers by charging higher prices for their products. The same holds true for currency exchange outlets at airports, making them an unwise choice.
8. Do Not Rely on Currency Exchange at Your Hotel Abroad
While some hotels abroad may accept Indian rupees, it is best to avoid exchanging currency at such establishments. Although it may seem convenient, hotels typically impose higher exchange rates and fees compared to banks or dedicated currency exchange offices. Moreover, they may have limited amounts of currency available, restricting your options.
9. Adhere to the 30/70 Rule
A prudent approach is to carry 30% of the required foreign currency in cash, distributed across various denominations, and keep the remaining 70% in a forex travel card. A forex travel card is a prepaid card that can hold multiple foreign currencies. It serves multiple purposes, allowing you to withdraw cash from ATMs, pay for accommodation, dining, and shopping, and conduct online transactions such as flight and hotel bookings. Carrying a reasonable amount of cash is useful in situations where card payments are not accepted, while the forex travel card offers enhanced security features like chip and PIN, ensuring the safety of your funds. Furthermore, forex cards are usually more cost-effective than purchasing foreign currency notes due to their favorable exchange rates.
10. Keep an International Debit/Credit Card as Backup
Lastly, it is crucial to have an international debit or credit card as a backup option. This ensures that you have access to funds in case your primary card is lost, stolen, or declined. Moreover, many international cards provide additional perks such as access to airport lounges, where you can enjoy amenities like free Wi-Fi, snacks, drinks, and showers. Before embarking on your trip, remember to activate international spending on your card. This can typically be done through your bank's mobile app or by contacting customer care. Notify them of your travel plans and request the enabling of international transactions.
Navigating the process of exchanging foreign currency in India can appear daunting to those with limited experience. However, armed with the right resources and knowledge, you can successfully navigate this process with ease and confidence. By following these ten essential tips, you can ensure a smooth and rewarding currency exchange experience, setting the stage for an unforgettable journey abroad.
Also Read: Unlocking the Benefits of Prepaid Forex Cards for Hassle-Free Overseas Travel
Back to All: CrossWorld Forex Resources