Ways to use Left Over Foreign Currency When Returning Back from Your Trip in India
If you have recently travelled to a foreign land, chances are that you have some foreign currency left and some balance on your forex card. On returning back, you have two choices: convert the currency back into Indian rupees or wait for the currency prices to rise in order to gain some profit.
However, if you are planning to keep the foreign currency indefinitely, do check the rules. As per the Reserve Bank of India (RBI), an individual is allowed to hold up to 2,000 US dollars in foreign currency or its equivalent. Excess currency, beyond USD 3,000 needs to be disclosed at the airport using a Currency Declaration Form.
Read below to know more about ways to deal with leftover foreign currency:
1. Do not wait for the foreign currency value to go up: One of the simplest and easiest ways to deal with left over foreign currency is to convert it back to Indian currency. For instance, if you have recently travelled to the US and have some US dollars left on returning back to India, and are waiting for the Indian currency to depreciate in respect to US Dollar so that you can earn more INR during the currency conversion, it is advisable to avoid doing so. This strategy can backfire easily and may cost you more than your initial investment.
2. Save the leftover foreign currency for future trips: If you are someone who has to travel frequently to a particular country due to work reasons, you can keep the remaining foreign currency and use it during your next visit. However, do ensure that you are abiding by the foreign currency limits set by RBI.
3. Gift the foreign currency notes to close family & friends or save it as a souvenir: You can keep the leftover currency as a token of remembrance of your travel/holiday or maybe you can also give a gift to your close family and friends. The coins left from foreign travel can be added to your coin collection or be used as a showpiece.
4. Sell the foreign currency notes and encash the amount on forex platform: Another option is to use the encashment feature available on your travel card. To avail of this feature, you can simply contact the travel card issuing company and place request to convert the remaining foreign currency available on card in Indian rupees. Moreover, you can also convert the remaining foreign currency on a suitable forex platform.
5. Make a donation: You can donate your leftover foreign currency while returning back to India. There are some airports that have donation boxes installed where you can drop some amount. Moreover, airlines like British Airways, Cathay Pacific, Asian Airlines, American Airlines, etc. are partnered with UNICEF’s Change for Good initiative. You can also make donations over there.
FAQs on Ways to use Left Over Foreign Currency
- Why are foreign currency conversion rates different between companies?
The foreign currency conversion rates between companies are different because each company manipulates the interbank rate to gain profit.
- Which banks in India offer foreign currency exchange facility?
Foreign currency exchange facility is available at banks like HDFC, Axis, and State Bank of India.
- Which documents are required for foreign currency exchange in India?
An individual needs to submit a valid copy of their passport, confirmed travel ticket (issued not more than 60 days before travel), PAN card, Aadhar card and valid visa copy of the country they are travelling to.
- Is it mandatory to surrender foreign coins to dealer on returning from abroad?
No, the residents can foreign coins on returning from abroad.
- Is foreign currency trading legal in India?
Yes, foreign currency trading is legal in India, however, you need to adhere to rules.
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