After two weeks of fun-filled European adventure, Rohan was back in India with a suitcase full of memories and a wallet still containing a substantial amount of euros. While unpacking, he realised that this leftover currency wasn’t just coins but a decent amount. Rohan had planned everything for his trip but had made no provisions for this unused foreign currency. He did not know what to do with the rest and first thought about storing it for his next journey. He soon realised it would not be a very bright idea to hold onto the money as the exchange rates changed daily.
Rohan’s is not a unique problem. Many Indian travellers have the same difficulty returning home with this unused foreign currency problem. Instead of letting that money lie idle or depreciate, transferring it back to your local bank account is far better. Whether you’ve been to Europe, the US, or any other part of the world, residual foreign currency can be converted and transferred so that funds remain accessible and used in India. Here’s how to make the most of your leftover currency and avoid common pitfalls.
Why Sell Leftover Foreign Currency?
Keeping leftover foreign currency may be tempting, especially when one knows that another trip is just around the corner. Realistically, this money depreciates either by changing exchange rates or just becomes a hassle to manage. Re-transferring it into your local account ensures that the money will not get stuck but will be available for use with other financial purposes. You will also be avoiding the risks of currency depreciation by converting your unspent foreign currency balance back to INR.
How Can You Transfer Unspent Foreign Currency?
- Through Forex Cards:
Forex cards are one of the most popular ways for Indian travellers to carry foreign currency. Prepaid cards can be loaded with multiple currencies and used as a debit or credit card abroad. But how does one get back the remaining balance upon return to India?
How do you transfer funds from a Forex card to a bank account?
- Check the Remaining Balance on the Forex Card:
The first thing you do is check how much money is left on the Forex card. Most of the time, this can also be checked through a mobile application or website provided by the issuing bank or even customer service. - Contact Your Bank:
Contact the bank that issued your Forex card. Most banks in India, such as Axis Bank, SBI, or ICICI Bank, let you transfer the residual amount to your savings account. Some do it through forex currency online services, while others require you to visit a branch. - Submit a Transfer Request:
After contacting the bank, the next step is to raise a request for the transfer of funds. This is mostly done online via a portal provided by the bank. Fill in all the required details, which are marked with asterisks, carefully to avoid hiccups. - Conversion to INR:
The bank will convert the foreign currency balance on your card to INR at the prevailing exchange rate. The sum so converted will then be credited to your local account, usually within a few days of business. - Understand the Charges:
Banks charge a minimal fee to move your money from the Forex card into the local account. Therefore, it is always better to know how much the bank will charge you from before.
Forex cards are a great way to handle excess foreign currencies. They are particularly efficient, as they do not require the hustle of handling cash.
- Currency Exchange Services
Currency exchange services are another viable way of converting and sending unused foreign currency. They can be found in physical forms, such as online forex currency or banks.
How to Use Currency Exchange Services?
- Look for an RBI-licensed Money Changer:
One should ensure that the RBI licenses the service used by them to avoid legal complications and for appropriate and fair exchange rates. - Best Exchange Rates:
Not all companies dealing in currency exchange offer rates similar to those of their customers. Hence, individuals should compare forex currency online or via different exchange platforms for the best rates. - Complete the KYC Requirements:
After choosing the best exchange rates, you will be asked to complete the Know Your Customer (KYC) requirements to process the exchange. Normally, these documents should include your passport, visa, and proof of travel. - Convert and Transfer:
Once you have selected the best rate, convert your foreign currency to INR. Certain services allow you to directly transfer the converted money into your local bank account, thus seamlessly transiting it all.
Forex currency online exchange portals have made it convenient for travellers to India to exchange leftover foreign currencies. Most online portals offer the best prices and doorstep services.
- Donate or Spend Foreign Currency:
If the denomination of the change is small, then you can donate it for a good cause. Most international airports have donation boxes for various causes, and some airlines also contribute towards such initiatives. You may use that currency in the duty-free shop or on future travels if you are visiting the same destination again.
However, if you would like to retain the money in your bank account, then currency conversion and transfer is the best option.
Tips to Get the Best Returns:
- Keep Track of the Exchange Rates:
Exchange rates change every day. You can use online tools to track these rates to select the best time to transfer your funds. - Know the Cost:
Be aware of any hidden fees associated with converting currency or transferring money. These may include service charges, transaction fees, and conversion rates. - Plan Ahead:
If you have any foreign currency left over from your trip, plan ahead and choose the most cost-effective way to change and transfer it. - Consider Future Travel Plans:
If you frequently travel to the same country, keeping some foreign currency at hand may be helpful. However, make sure this does not cause huge losses due to bad exchange rates.
To wrap it up:
Transferring your unused foreign currency back into your local account is a neat financial step that ensures your money is at hand and continues to work for you. Whether through a forex card, currency exchange services, or any other route, the bottom line is to act quickly and smartly. Knowing available options and caring about exchange rates and fees will help you fully use your remaining foreign currency and improve your financial health.