What is foreign exchange? Here’s a beginner’s guide to forex exchange in India.

There are many things involved in planning an international trip. From having essential documents to booking tickets, reserving a hotel room to creating a budget, the priority list before you travel is endless. And most importantly, your trip largely relies on foreign exchange. For your daily expenses, you need the currency of the country you’re heading to for your trip. It is when the concept of foreign exchange plays a key role when you trade the Indian rupee for the currency of the destination country, and vice versa.

The value of this currency depends on a country’s laws of supply and demand. If you’re wondering about the sources of foreign exchange, there are several options to pick from in India. There are banks, online platforms, money merchants, and airports. But these options have pros and cons you need to know about before you reach out to them for forex services. So which option should you choose? Read on to learn more!

What does the term foreign exchange mean?

Foreign exchange or forex is converting one country’s currency into another. For example, you can exchange the Indian rupee for US dollars/ yen/ pounds/ or euro. And an exchange rate is the rate at which the market converts one currency into another.

There are two types of foreign exchange. Buying and selling foreign exchange or foreign currency is one of them.

To purchase forex — You must purchase foreign currency if you require the currency of the destination country for your expenses. It may entail exchanging Indian rupees for US dollars or Japanese yen.

To sell forex — You may have leftover foreign cash when you return to India. You must sell it for the Indian rupee soon after your return from the trip as the rules and regulations may make the money invalid after some time.

Why do we need a foreign exchange?

The value of the currency differs from one country to another. It is when we need forex services to facilitate the exchange of goods and services for money. And foreign currency is the backbone of business investments and importing goods around the world. So whether you’re planning a vacation abroad or a business trip, the foreign exchange makes it a hassle-free experience.

How to change money in India?

In India, there are several ways to exchange currency. You can opt for commercial banks, airports, online platforms, and money vendors. But their benefits differ based on their exchange rates, time to convert currency, and ease of use. These are:

Indian banks — Many commercial banks offer secure forex services. They could be popular banks such as HDFC, Axis Bank, and SBI. And it is best to use the services of a bank where you hold your account. But while you could avoid money fraud through the banks, they are not the best source to exchange currency. Since it is just an additional service they provide, they set a high exchange rate, making the currency conversion an expensive process.

Verified money changers — There are several money merchants or money changers in your area who are RBI-approved. They provide forex services in metropolitan cities as well as small towns. Compared to banks, they offer competitive exchange rates making money conversion an inexpensive process. However, ensure that they are verified money changers before using their services.

Airports — Airports are another source for currency conversion when you urgently need to convert it. If you run out of time to sufficiently exchange money, airport counters come to the rescue while you’re on the go. But do keep in mind that they are expensive as they charge a very high exchange rate for their services. So keep it as a last option if you ever need to convert currency.

Online platforms — These are the most reliable source for foreign exchange services. They operate round-the-clock on their website and app, so you need not worry about stepping outside. It is the cheapest way to buy, sell, or exchange currency in a short amount of time. They charge the lowest exchange rate in the market, making it an inexpensive and reliable process. You can track the transaction anytime and check exchange rates live. Their complete transparency makes currency conversion a seamless process.

What kind of documents do you need to exchange money?

The foreign exchange process requires relevant supporting documents. Sources such as banks and money vendors will ask you for the same before you change currency. Here’s a list of essential KYC documents and others you need to have.

- Passport

- Visa

- Aadhar Card

- PAN Card

- Voters ID

- Air tickets

- Driving license

Online platforms such as Prune are the best way to convert currency. Prune is the most trusted name for foreign exchange services among its loyal customers and has been serving the community for years. You can enjoy 24/7 services and doorstep delivery via the app and website.

Convenient service — You can comfortably book forex services at home or office. Prune app and website simplify the process with complete online transactions that save you time and effort.

Lowest exchange rates — Get the best exchange rates with Prune. The app and website also give you a live exchange rate tracker making the process for you hassle-free.

Quick delivery: Get the money delivered to your home in just two to three days. Our 24/7 availability makes the transactions a breezy experience.

Better rate request — You can always ask the team to give you a better exchange rate if you’re not satisfied with the current one. Our team will recheck the current rates and give you the best deals.

Prune is also known for its other top-notch services such as SIM delivery, comprehensive tour packages, smartphone comparison feature, and utility bills payment option — all on its app and website.

Download the Prune app now, or visit the Prune website!