DCB Bank Forex Rates Explained | How to Save on Transfers

As Indian businesses and freelancers scale internationally, they have to make sure that their cross-border transactions are carried out smoothly. But many businesses struggle due to the constantly changing forex rates. On top of that, the additional high processing fees can also cause stress.  

Knowing how DCB Bank’s forex rates work and spotting hidden costs can help businesses plan their international transfers better. This article explores DCB Bank’s forex rates, how and why they differ from the mid-market rate, how to check them, and tips to make transfers more efficient.

DCB Bank is an Indian private sector bank that is trusted by many customers. It is known for its customer-focused services, one of which is exchanging currency for international transactions. 

DCB Bank’s forex rates are live conversion rates. They change in real-time and depend on the international market's demand and supply, economy, and geopolitical events. The rates are updated regularly and allow customers to access transparent and competitive prices. However, the DCB exchange rates are slightly different from the mid-market rate. This is to ensure that they can cover costs and risks that might arise during international transactions. 

DCB Bank’s forex rates help in currency conversion during international payments. DCB charges the live conversion rate with a slight markup. The additional fee is charged to include transaction fees and GST. The DCB Bank forex card rates also include these charges. However, the DCB Niyo Visa Platinum Debit Card, offering zero forex markup, is an exception. 

While DCB Bank’s forex rates are competitive and their pricing is transparent, you should still review the charges before the transaction. It should be done to avoid any unexpected costs, plan international transfers, and potentially save more while using DCB forex services. 

The mid-market exchange rate benchmark is the real market value of the currency. It is usually the midpoint between the buying price and selling price of the currencies, making it more transparent. However, DCB’s forex charges differ from the mid-market rates. This is because of several reasons, like:

1. Forex markup

When you use a DCB forex card, the DCB exchange rate adds an additional fee to the interbank or mid-market rate. The markup is somewhere between 1% and 3% of the amount being charged. This markup allows banks to cover operational costs and risks that may occur when handling foreign currencies.

2. Transaction fee

DCB may charge a transaction fee for providing services such as reloading of the forex card or international purchases. The fees vary based on the type of transaction. 

3. GST

To maintain regulatory and compliance standards, banks have to pay GST on the forex markup, which causes the cost of the international transaction, DCB forex card, or remittance service, to increase even more. 

The effective rate refers to the exchange rate that customers have to pay after all the fees and markups have been added to the mid-market rate.  For example, if you want $1,000, the mid-market rate suggests you'd pay ₹83,000. But with DCB Bank's rate of ₹83.50 plus a ₹50 fee, you end up paying slightly more    

Real-time forex rates refer to the live exchange rate for converting one currency to another during international transactions. Since exchange rates keep shifting with time, it is important to keep up with them as they impact the overall transfer cost.  DCB forex rates follow the real-time shifts in exchange rates. Customers can see these live rates, which helps them pick the right time for international transactions and get the most value. 

If you use old or delayed rates instead, you could end up paying more and the person receiving the money might get less. Watching real-time forex rates helps you plan your payments better and avoid any unexpected extra costs. 

If you want to check the latest forex rates at DCB Bank, you can use the online option or the mobile app.  The quickest method of checking the bank's forex rates is through the DCB Bank's official website. It has a dedicated forex page that shows the live rates, which are updated regularly to reflect the market changes. It shows the DCB exchange rates for multiple currencies.

The DCB Bank mobile app is another convenient option. Here’s how you can use it to check the forex rates:

• Log in to the website or open the mobile app
• Go to the 'Forex Rates' or 'Foreign Exchange' section
• View the list of currency pairs and live conversion rates
• Use built-in currency converters for instant calculations

If you're tired of hidden fees and delays in cross-border payments, Xflow offers a modern solution.

• Xflow simplifies international payments for freelancers, SMEs, and enterprises.
• It offers transparent, zero-fee remittances, removing hidden forex conversion costs.
• It uses real-time mid-market exchange rates with zero forex markup, ensuring businesses always get the best possible rates.
• Xflow offers flat transaction fees and faster settlements (usually within one business day)
• It also provides free digital Foreign Inward Remittance Advice (e-FIRA), streamlining compliance for Indian businesses. 
• With Xflow, businesses can enjoy lower costs, greater transparency, and faster payments, making it a smarter alternative to DCB Bank’s forex services.

Understanding DCB Bank’s forex rates and associated charges is extremely important to make informed decisions about international money transfers. While DCB Bank offers competitive rates and transparent fees, its forex services include additional fees such as markups, transaction fees, and GST. For customers who want lower fees, the DCB Remit platform, with transparent, zero-fee remittances, can be a good choice.

However, for faster, more cost-effective, and transparent cross-border payments, fintech solutions like Xflow provide significant advantages, including zero forex markup, flat fees, and speedy settlements. 

Sign up with Xflow today to save more on international payments!