Why is it not a good idea to exchange currencies locally?

Getting currency exchanged locally from a reputed source is definitely an issue. The problem lies in the fact that every currency converter in India isn’t certified thus their reliability is highly low. Moreover, getting money exchanged from non-certified or local converters is extremely expensive as you pay hefty charges as fees. There are more reasons because of which we advise our readers to choose safer ways of exchanging foreign currency instead of going for dubious money exchange shops.

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  1. Trusting the local currency exchange agencies is difficult, especially those who aren’t certified by the government

The first reason for choosing against money conversion shops located in the nooks and corners of India is their reliability. Most of such shops are into illegal business of exchanging foreign currency; they aren’t certified by the government thus they either pay you lesser foreign exchange rate or charge a bomb as their conversion fees. Their practice of not paying according to the current exchange rates is a well-though plan of making more money from their customers. They keep you in dark so that they can pay you lesser than the updated currency exchange rate and fill their pockets with the rest of the converted amount. Even their sources of acquiring foreign currency isn’t reliable at all thus at times, you might be a victim of fraud and may receive fake foreign currency. To avoid falling in their trap, ask them if they have the legal license for foreign exchange issued by the Indian Government. No matter how nice their foreign exchange rate sound to you, you are advised to maintain your distance from such fraudsters.

To check the legality of your agent, ask them for their GST number. Or ask them to provide a printed invoice for your transaction.

  1. Does your agent give you the best foreign exchange rate of the day?

The traditional currency exchange shop do not have a mechanism to keep an eye on the ever fluctuating foreign currency exchange rate. For example, at 11:00 am USD = 60 INR while at 4:00 pm, it is equivalent to 62 INR. Ideally, if you approach your currency conversion agency at 5 pm, you need to get the highest foreign exchange rate of the day. But we can bet that your agent will still offer you Rs. 60 for every dollar. It is either they do not get live updates on the changing rates or they like to make more profit by hiding information from their customers. In either case, it is a loss for you.

The best way of exchanging currency near you is going online and choosing a reliable service provider such as Currency Kart. Plus when making online currency exchange, you get live updates on the currency rate and can choose the time when the rate is the highest to ensure that you get a profitable deal for yourself. Beware of fraudsters to keep your hard earned money safe.

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