Bank of India Forex Rates Explained | How to Save on Transfers

Sending or receiving money from overseas isn't exactly the most straightforward process. While mid-market rates show you the exact value of foreign exchange at a given time, all banks, including Bank of India (BOI), charge additional fees on top of this rate to process your transaction. And while this is a completely normal practice, you do end up paying more than what is actually needed.

So, before you partner with BOI for managing cross-border transactions, read this article to understand the costs involved and explore more cost-effective alternatives.

When you send or receive money overseas, the rate you get depends on the type of transaction. Bank of India offers four main forex rates - TTS, TTB, TCS, and TCB. Each is used for different purposes.

1. TTB (Telegraphic Transfer Buying Rate):

This is the rate the bank uses to buy foreign currency and convert it into INR. You'll see this rate applied when you receive money from abroad, like a remittance from a friend or payment for exported goods. TTB is also used in cases such as:

• Credit from export bills or checks collected from overseas.
• Cancellation of an outward transfer.
• Converting foreign currency deposits like RFC or FCNR into INR.

2. TTS (Telegraphic Transfer Selling Rate):

This is the rate used when the bank sells foreign currency. It applies when you make an outward transfer, such as sending money abroad from your INR account. It's also used for:

• Refunds or cancellations of inward remittances.
• Converting NRE deposits into foreign currency accounts.
• Recovery of loan interest on foreign currency loans.

3. TCS (Travel Currency Selling Rate):

This is the rate the bank applies when it sells foreign currency in cash. It's most commonly used when you're travelling abroad and need physical currency like USD, EUR, or GBP.

4. TCB (Travel Currency Buying Rate):

This is the rate the bank uses when it buys back unused foreign currency cash from customers returning from abroad. If you come back from a trip with leftover dollars or euros and want to exchange them for INR, the bank will convert them using the TCB rate.

Bank of India also provides a digital platform called FX Retail. It is designed for individual customers who want to trade in foreign exchange directly. It allows you to buy or sell USD against INR at transparent and competitive rates.

Before sending or receiving money from abroad, it's important to know Bank of India's forex exchange rate and related charges. The rate you get can change depending on whether you're buying, selling, or exchanging cash. It also depends on which currency you're dealing with.

1. BOI exchange rates

Notes:

• *JPY is quoted per 100 units.
• The final USD-INR remittance rate is confirmed at the time of debit or credit to your account.

2. BOI outward remittance fee structure

Apart from the conversion rate, Bank of India also charges a processing fee based on the remittance amount.

3. BOI foreign currency swing limit

For businesses or individuals handling larger transactions, Bank of India offers a foreign currency swing limit facility.

You'll notice that the rates offered by Bank of India don't match the mid-market exchange rate benchmark. This is because banks add extra costs and margins in their pricing. Here's why:

1. Spread on exchange rates

Banks use different rates when dealing with customers compared to other banks. For example, if the interbank rate for USD is INR 87.00, you might get INR 88.03 when buying and INR 86.01 when selling.

This difference is called the spread. It helps the bank earn a small profit on each transaction.

2. Additional fees

Bank of India also charges transaction fees or commissions to cover risks such as inflation, political instability, or sudden market changes. These fees also cover their operational costs.

3. Market volatility

Since currency values fluctuate daily, banks increase the spread to protect themselves from potential losses. The difference can be especially higher for less frequently traded currencies.

4. Regulatory costs

BOI needs to follow RBI guidelines. Compliance with these regulations can add costs, which are passed on to customers through higher spreads or fees.

The effective exchange rate shows the real value of a currency by looking at how much trade happens with different countries. Each country's currency gets a weight based on how much trade it does.

For example, say India does 60% of its trade with Japan. It also does 25% of its trade with Canada and 15% with Singapore. This means,

• The yen will have a 60% weight
• The Canadian dollar will have a 25% weight
• The Singapore dollar will have a 15% weight

To find the effective rate, each currency's exchange rate is adjusted based on its weight. Since Japan has the largest share, any change in the yen's value will affect the final rate more than changes in the Canadian or Singaporean currencies.

Real-time forex data plays a big role in how businesses plan and manage their money across borders. Here's why they matter:

• They help you decide the right time to send or receive money. This ensures you get more value from each transaction.
• They help you protect against sudden currency changes that could lead to losses.
• They make it easier to set prices for goods or services sold in other countries.
• They help avoid delays and surprises when making or receiving payments abroad.
• They ensure your financial statements reflect the true value of international transactions.

You can easily check the rate of foreign exchange from Bank of India. Here's how:

1. Visit the official website

Go to Bank of India's website and find the forex rates section. You'll see the latest rates for major currencies here, like USD, EUR, GBP, etc.

2. Use the FX Retail platform

If you need to book a trade or lock in a rate for business or personal transactions, you can do it directly through the bank's FX Retail platform.

3. Contact the bank

If you're not sure about the rates or want more details, call customer support. You can also visit your nearest branch for help.

While Bank of India's forex card rate helps you manage cross-border transactions, platforms like Xflow offer a simpler, faster, and more transparent way to get paid from overseas.

With Xflow, you can:

• Receive payments locally. Your clients pay through local bank transfers in their own currency, which is usually faster and cheaper than international wire transfers.
• You can get paid in over 25 currencies and withdraw them directly into your INR or EEFC account.
• Know the exact amount you'll receive because Xflow uses mid-market rates.
• Access funds quickly, with withdrawals reaching your bank account within one business day.
• Avoid complex processes without intermediary banks, extra paperwork, or withdrawal limits.

If you often send or receive money from abroad, it's good to understand Bank of India's forex rates. But if you want a faster and simpler way to manage payments, Xflow can be a better option.

Xflow gives you full control over your international payments. You can work with multiple currencies, get next-day settlements, know the mid-market rates, and avoid any hidden fees.