IDFC Bank Forex Rates Explained | How to Save on Transfers

Worldwide remittance flows have reached nearly $958 billion in 2025. India leads this list by receiving $135 billion in the same year. 

As the international movement of money continues to increase, it is important to understand how forex rates impact your transactions. If you’re sending or receiving money from abroad through IDFC First Bank, you need to understand the IDFC forex rates to determine the amount you can expect to receive after all charges are deducted.

In this article, we’ll walk you through the fee breakdown of IDFC First Bank’s forex rates, along with why they differ from market rates and how fintech alternatives can help save on transactions.

IDFC First Bank is a private sector bank in India that was formed in 2018 as a merger between IDFC Bank and Capital First. A key feature of IDFC First Bank is the competitive IDFC forex rates for individuals as well as businesses. This lets you manage international payments and currency exchanges easily.      

The rates are updated regularly to keep up with the global market changes. IDFC First Bank also provides customers with different rates that depend on the transaction method. Whether the transaction is conducted through cash, telegraphic transfer (TT), or a forex card, the IDFC Bank forex rates differ for each. For instance, in September 2025, for USD/INR transactions:

• The cash exchange rate is ₹86.72 buy rate and ₹90.6 sell rate.
• The TT buy/sell forex rates were ₹87.06 buy rate and ₹90.26 sell rate.
• The IDFC forex card rate was ₹87.05 buy rate and ₹90.27 sell rate. 

IDFC First Bank’s forex rates refer to the cost of international transactions that customers have to pay. It includes a forex markup fee, GST, exchange fees, and intermediary bank charges. 

When you make a forex payment through the IDFC First Bank, several charges may apply. The fee breakdown for IDFC Bank forex rates includes the exchange rate, which might range from 1%-3% per transaction. Additionally, a GST rate might also be charged on the transaction amount. An outward remittance rate is also charged, along with intermediary bank charges depending on how the payments are structured. 

IDFC Bank also uses an OUR/BEN/SHA framework:

• OUR: The sender has to pay the charges, so the receiver gets the full amount.
• BEN: The receiver has to pay all the charges, so they do not get the full amount, as deductions are made before the money is credited.
• SHA: The sender and receiver both cover their part of the fees, so their costs are shared.

A point to note is that IDFC First Bank offers zero-forex markup credit cards, such as Ashva and Wow, to make foreign transactions more affordable. The IDFC forex card rates don’t include the 1%-3% markup on international transactions, which makes them more cost-effective for individuals and businesses than regular forex cards  . 

IDFC First Bank has a clear fee breakdown. The charges are mentioned below:

The interbank rate is also known as the mid-market rate. It shows the pure supply and demand in the international currency market. However, the IDFC Bank forex rates differ from it. This is because banks have to add spreads, fees, and compliance costs that are beyond the interbank rates.

1. Spreads

IDFC First Bank adds a spread. A spread is the difference between the interest rate paid to the depositors by the bank and the interest rate charged to borrowers on the loans provided by the bank.

This acts as a buffer for risks as well as helps to increase profits. In case there are sudden market swings, a spread guarantees protection, especially for smaller transactions or for currencies that are not traded as commonly. 

2. Fees and operational costs

In order for a bank to run a secure forex service, it needs to pay its staff, invest in technology, and build     a proper infrastructure. This cost is passed on to the customers and inflates the IDFC exchange rate. 

3. Compliance

Banks also need to follow strict standards to adhere to RBI regulations, insurance requirements, and AML checks. These measures are necessary; however, they do increase the costs. It increases the gap between live market rates and bank quotes  . 

The effective exchange rate refers to the fee a bank charges for converting one currency into another during international payments, remittances, or currency exchanges. This is not the mid-market rate, as it includes a margin or markup added by the bank. It usually depends on the market fluctuations, transaction types, and bank policies.

For example, for USD to INR, IDFC First Bank charges ₹84.50, which is higher when compared to the interbank rate of ₹84.00. This means, for every dollar, you’ll have to pay ₹84.50 instead of ₹84.00. So, if you buy $1,000, you would pay ₹84,500 instead of ₹84,000. The extra ₹500 is the bank's margin, which covers fees and ensures profit.

Real-time forex rates refer to the current market value of one currency with respect to another. They are important for businesses as well as individuals to save money. 

If businesses and individuals make use of live forex rates, they can ensure that they utilize the best possible exchange rate. This can help them avoid losses. In comparison, since fixed bank rates cannot keep up with the real-time market value, you might have to pay huge amounts of fees on large transactions. 

By using platforms that use the mid-market exchange rate benchmarks, which are the midpoint of the buying and selling rates, you can ensure that the fees you pay reflect the actual international market. It leads to more transparent and cost-effective transactions. 

1. Business

Businesses especially benefit from real-time forex rates, as they can help them reduce expenses when paying overseas clients or suppliers. It also allows them to stay competitive and invest more in the business by avoiding overpayment for foreign currency.

2. Traders

Real-time forex rates allow traders to remain informed about the international economic changes that might affect the value of currency. By combining this information with proper risk management, they can increase profits and decrease losses. 

To check IDFC Bank’s forex rates, you can visit their official website or look into their mobile app. The latest rates are visible there. 

The steps to do so are mentioned below:

1. Open the IDFC First Bank website or mobile app.

2. Navigate to the “Forex Rates” section.

3. Select the currency and transaction type (inward/outward).

4. Check the rate and proceed with your transaction.

You can also reach out to customer support or visit the nearest IDFC branch. 

In today’s global marketplace, businesses need fast, predictable, and cost-effective international payments. Xflow, a fintech alternative to banks, makes this easier for Indian businesses, freelancers, and SMEs. Here’s how:

• Flat 1% transaction fees: Unlike traditional banks with hidden transfer and intermediary fees, Xflow ensures transparent costs with 0% FX markup, helping you retain more revenue.

• Know exactly what you’ll receive: With guaranteed live FX rates, you can see the exact INR amount at withdrawal, removing uncertainty and improving financial planning.

• Settlement within one business day: Xflow leverages local payment networks like ACH and FedWire for US to India transfers, avoiding 3–10 day delays common with traditional bank transfers.

• Seamless large invoice processing: Receive over $10,000 per invoice without splitting payments, reducing manual work, errors, and reconciliation hassles.

• FREE e-FIRA processing: Xflow provides regulatory compliance certificates within 24 hours, simplifying legal requirements and minimizing administrative burden.

Understanding the IDFC Bank forex rates is important for businesses and individuals dealing with cross-border payments. While the bank is a reliable option for cross-border transfers, added processing costs and compliance requirements might add up and cost you huge amounts of money. 

To explore smarter and more transparent options, visit Xflow. It helps you avoid the unnecessary costs and focus on growing your business.