Canara Bank Forex Rates Explained | How to Save on Transfers

Scaling your business internationally? Sending money to family abroad? Managing overseas transactions can be quite expensive if you're not careful. Changing exchange rates and high forex charges can eat into the amount you send or receive.

Canara Bank, one of the top banks in India, has its own rates for sending or receiving money abroad. These rates are usually different from the online market rates. If you don't know how the bank sets them, you can end up paying more than needed.

In this article, we'll explain Canara Bank's forex rates, so you can make better decisions and save on your international transfers.

Canara Bank started offering foreign exchange services in 1953 with its first forex department in Mumbai. Today, all forex transactions are managed through the Centralized Processing Cell – Forex Transactions (CPC-FT). The bank also has a treasury and forex dealing room in Mumbai and London to handle currency transactions in both India and abroad.

The bank offers several forex services. You can buy or sell foreign currency, book forward contracts, and use tools like currency swaps to manage currency risks. All these are offered as per bank rules and the guidelines set by regulators like RBI and FEMA.

To understand how Canara Bank's exchange rates work, you need to know what the TT rates (buy/sell) are:

• TT buying rate (TTB): This is the rate used when the bank converts foreign currency into Indian Rupees. For example, if you receive money from a relative abroad, the bank credits your account in INR using the TTB rate.

• TT selling rate (TTS): This is the rate used when you send money out of India. If you transfer INR to someone's account in another country, the bank applies the TTS rate to convert it into foreign currency.

When you use Canara Bank for foreign exchange services, there are different charges depending on the type of transaction. You'll have to pay different cross border fees for exports, imports, sending money abroad, and other forex services.

Here's a breakdown of the key charges:

• Export bills: If your export bills are handled by another bank or become overdue, charges apply. There is also a commission in lieu of exchange, which varies with the transaction value.

• Letters of Credit (LC): Advising and amendments of export LCs have fixed charges, which differ for Canara Bank customers and others.

• Import bills: Payments under LC or not under LC carry separate charges. If bills are delayed, additional late fees are charged.

• Remittances: Outward remittances have flat fees. The amount depends on whether the sender is an individual or a company.

• Other services: Charges also apply for certificates, bill of entry follow-ups, and approvals for offices or foreign transactions.

Export-related charges:

Import-related charges:

Import-related charges:

Remittance and other charges:

Canara Bank forex card rates

Rates are quoted in INR for one unit of foreign currency, except JPY (100 units).

Foreign exchange rates keep changing throughout the day. Even a small shift can change how much you pay or get in an international transaction. That's why having real-time rates matters.

For traders, real-time rates let them act quickly. If a currency moves, they can decide to buy, sell, or wait. This helps them avoid losses and take advantage of good opportunities.

For businesses, accurate, real-time FX rates help:

• Calculate the true cost of payments.
• Decide the right time to make a transfer.
• Handle risks from sudden changes in currency value.

Without real-time rates, you're working with old numbers. This can mean paying more than necessary, setting the wrong prices, or missing opportunities to save money.

When you search for a currency rate online, you usually see the mid-market exchange rate benchmark. This is the average of buying and selling rates between banks. But customers don't get this rate directly. Banks, including Canara Bank, add a margin to cover their costs and earn a profit. That's why the rate you see online often looks better than the one offered at the counter.

Here are the main reasons why Canara Bank's rates differ from market rates:

• Spreads: Banks act as middlemen. The rate at which they trade with each other is lower than the rate given to customers. This difference is called the spread. It can change based on the currency, amount, and bank rules.

• Fees: Canara Bank charges a flat fee or a percentage on each transfer. This helps the bank cover costs and reduce risks.

• Market volatility: Global events, inflation, or political shifts can change currency values. To protect itself, the bank adjusts spreads and charges.

• Regulations: All Indian banks, including Canara Bank, follow RBI rules. Meeting these rules costs money, and some of that cost is included in the rates and fees charged to customers.

The effective exchange rate shows how a country's currency is doing against other major currencies. It gives more weight to the currencies used most in trade.

For example, if the U.S. trades more with Europe than with Australia, the euro will carry more weight than the Australian dollar. That means a change in the euro-dollar rate will have a bigger impact on the effective rate.

Let's see a simple example:

• The U.S. does 70% of its trade with the eurozone,
• 20% with Great Britain, and
• 10% with Australia

Here, the euro makes up 70% of the basket, the pound 20%, and the Australian dollar 10%. If the euro falls against the dollar, it will impact the effective rate much more than a change in the Australian dollar.

You can check Canara Bank's forex rates directly on its official website. The website shows updated TT buy and sell rates, along with other associated fees and charges. If you use a Canara Bank forex card, you can also see the travel card fees (issuance, reload, cross-currency fees, etc.) on the bank's dedicated 'forex card rates' page.

You can also directly speak with a bank representative to get a better idea of the prevailing rates.

If you're looking to save on forex costs, Xflow can be a better choice than traditional banks like Canara Bank. Here's why:

• Unlike banks, which often add a 3–4% margin on exchange rates, Xflow gives you live rates with a flat 1% charge.
• All costs are transparent, so you know exactly what you're receiving.
• You can receive your funds in your INR account within just one business day.
• Each invoice can be settled fully, without any restrictions.
• Xflow is designed for modern businesses, allowing quick, reliable, and fully online cross-border payments.

Xflow can save you up to 50% on forex costs compared to Canara Bank. For businesses that make international payments often, these savings can really add up. It also makes sending money abroad faster and easier.

Understanding Canara Bank's forex rates can help you make better decisions for your international transactions. However, you'll have to bear a host of other fees and charges, which can make transactions more expensive than they should be.

Using platforms like, you can see real-time rates with no hidden markup. Plus, transfers happen faster and fees are lower. This lets you save money and make cross-border payments easier and cheaper.