Federal Bank Forex Rates Explained | How to Save on Transfers

You might notice that the dollar rate on your bank slip is different from the one you find on Google or economic news sites. It is because traditional banks, such as Federal Bank, act as middlemen between you and foreign transactions.

Every time customers send money or receive funds from abroad, the forex rate they’re offered is slightly different from the live mid-market exchange rate. The small difference between these rates actually forms a steady source of income for banks. 

So, if you’re curious about how Federal Bank forex rates work, or what charges are levied on its forex card, keep reading on. 

Forex rates refer to the exchange rate at which currencies can be exchanged for one another. It tells you how much of one currency you need to buy one unit of another currency. 

Also, forex rates are different for different services that a bank offers, like cash transactions, forex cards, and electronic transfers. 

For forex rates of electronic transfers, i.e., moving money from one bank account to another, across different countries and involving different currencies, the term used is Telegraphic Transfer (TT).

TT buying and selling rates refer to the exchange rates used by a bank for electronic transfers internationally. 

• TT buying (TTB) rate: The rate at which a bank converts foreign currency it has received (such as a remittance sent from abroad) into the recipient's local currency (e.g., INR) is called the TT buy rate. 
• TT selling (TTS) rate: This rate is used when a customer sends their local currency (e.g., INR) out of the country, and the bank converts it into a foreign currency.

On the Federal Bank’s website, you’ll find a section under interest rates, called forex rates, where you’ll find a PDF that tells you the latest TT Buy/Sell rates for various currencies. 

For example: As of 23 September 2025:

• USD TT Buy rate: 87.14 INR
• USD TT Sell rate: 87.71 INR
• EUR TT Buy rate: 102.83 INR
• EUR TT Sell rate: 103.02 INR

The forex charges that the Federal Bank levies on its international transactions can be broken up into two parts. 

One is the forex markup that they add to the mid-market exchange rate to arrive at the Federal Bank forex rate. Forex markup on the market rate, called “Spread,” is added by banks to cover their operating expenses, such as infrastructure, staff, and the cost of managing foreign currency, and still make a profit.

Another is the service fees charged for each transaction. Let’s look at the charges on the services that Federal Bank provides, including Federal Bank forex card rates:

1) Inward remittances charges

• Charge on receiving funds from abroad for trade or non-trade purposes or to an Exchange Earners’ Foreign Currency (EEFC) account: 250 INR 
• A small fee charged as a percentage of the amount, replacing a foreign exchange margin fee: 0.125% (Minimum 500 INR)
• Purpose code change request: 250 INR 
• FIRC issuance: 500 INR 

2) Outward remittances charges

• Trade-related outward remittances: 0.125% (Minimum 1000 INR)
• Non-trade outward remittance under Liberalised Remittance Scheme or Non-Resident repatriation rules: 1000 INR 
• SWIFT charges for remittance: Rs. 500/-
• FX cross-currency charges (transactions involving currency conversion between two foreign currencies): 500 INR

Note: All above charges are exclusive of GST.

3) Fi-Federal debit card

Federal Bank issues a forex debit card in partnership with Fi Brand Pvt Ltd. You just need to add INR in your Fi-Federal debit card and it can be used in over 180 countries. The charges that apply to this card are:

• Zero forex markup: No foreign transaction charges on international spends.
• ATM withdrawal fees: 200 INR + GST, 0% forex markup. 
• Issuance fee: Free for Prime/Infinite/Salary plan users; 299 INR + GST (for Regular, Standard, and Plus plan users).
• Annual Maintenance Charge (AMC): 199 INR + GST for Plus plan users, which is waived if spending exceeds Rs. 25,000 in 12 months before the AMC billing date; no AMC for Prime/Infinite/Salary plans.

Forex rates of Federal Bank or other traditional banks include a markup over the interbank (mid-market) rates, so that they can make a profit from currency conversion. 

The mid-market rate we see on news sites is the true market rate of a currency. It is a wholesale rate that major banks and financial institutions quote to their clients. The middle ground between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) for a currency is the mid-market rate. 

Banks add a markup over the interbank (mid-market) rates to cover their operational costs (infrastructure, staff, managing foreign currency) and earn revenue. Banks sell currency at a slightly higher rate (offer rate) and buy it at a slightly lower rate (bid rate). The small difference between these two rates is the bank’s profit. But it reduces the value a customer receives per unit of foreign currency. 

Real Effective Exchange Rate (REER) is an index number that represents the weighted average of a country's currency against a basket of other countries’ currencies. It is the relative value of your country’s currency compared to the currencies of countries which are your major trading partners. 

The effective rate is the real price you pay after including all extra costs like service fees or commissions when exchanging currency. 

In a hypothetical example, let’s say India trades with only three countries: the United States, China, and the United Arab Emirates (UAE). That means the Indian rupee has a trading relationship with the U.S. dollar, the Chinese yuan, and the UAE dirham.

Say India does 

• 50% of its trading with the U.S.
• 30% with China
• 20% with the UAE

Therefore, the weights assigned to each currency in this basket will be 50% for the U.S. dollar, 30% for the Chinese yuan, and 20% for the UAE dirham.

This means that a move in the U.S. dollar would have a greater impact on the basket than a move in the dirham. If one of the exchange rates shifted sharply but the weighted average of the basket didn’t change, it could mean that the other currencies moved in the opposite direction, cancelling out the effect of the first move.

REER is a clear indication of the international competitiveness of your country’s currency. It factors in inflation differences to show how the value of one country's currency holds up against its key trading partners. 

Real-time foreign exchange, or forex for short is a global marketplace of currencies being traded. The stock markets have open and close timings. On the other hand, the forex market operates 24 hours a day, five days a week. The forex operations keep continuing and the market keeps changing. 

FX rates keep changing due to a lot of factors, like:

• Changing geopolitical circumstances, political stability/instability
• Economic factors (GDP growth, interest rates, inflation rate)
• Market sentiment (confidence/adverse)

Real-time forex rates are important because they show the most updated prices at which the forex market exchanges currencies. These latest figures help businesses, traders, and investors make informed decisions.

• It enables traders to react faster to market changes, book more profits and avoid losses 
• Businesses use such real-time FX rates to better plan their pricing/hedging tactics. Ultimately, helping them create appropriate budgets and manage cash flow.

If such significant decisions would be made on the basis of outdated information, many market opportunities will be missed. It will ultimately hamper the profitability, compromise with financial reporting, and bring down the economic growth altogether.   

Follow the steps below to check Federal Bank forex rates:

• Search on Google/any search engine “Forex rates Federal Bank.”
• The Federal Bank’s official site will come up. Click on that, or click here.
• You will see a PDF link given to view the Federal Bank forex card rates. Click on that.
• Keep in mind that these rates are subject to change, so it's essential to check for the latest updates daily. 

Xflow is a smart fintech alternative to traditional banks. We offer a plethora of advantages and features like: 

• Mid-market rates: Xflow offers mid-market FX rates with no hidden markup fees, providing more transparency, reduced risk of currency fluctuations, and improved savings. In fact, you can save up to 50% on FX costs with Xflow.  

• Locked forex rates: Xflow allows you to lock the current foreign exchange rate for up to 45 days, helping your business avoid market volatility. 

• Better compliance: To ensure that your business remains compliant with the latest RBI regulations and FEMA norms, Xflow also offers free e-FIRA. 

• RBI-Authorized: Our partners are RBI-Authorized banks, ensuring the complete safety of your funds during receipt. 

• Fast settlements: Xflow settles payments much faster than traditional banks. You can improve your business’s efficiency with our 1-business-day, fast payment settlement.

• A 100% digital workflow: If you’re tired of visiting physical bank branches, waiting for hours in queues, Xflow is your saviour, thanks to our fully digital workflow.

• Third-party integration: Xflow can easily integrate with your invoicing tools, CRM software, and account systems, like Zoho Books, ensuring smooth transactions across borders.

Banks may be the traditional go-to option for forex conversions. But many new-age platforms are now offering better FX rates, which can be locked for future transactions, ensuring that your actual earning potential is realised. 

Xflow is a fintech alternative to such traditional practices of handling funds received from abroad. We partner with RBI-authorised banks and are powered by JPMorgan Chase, so you can be sure that your fund transfer lies in responsible hands. With free eFIRA, same-day payment settlements, and third-party integration, Xflow is becoming a business’s go-to payment solution. Sign up with Xflow today!