Recent problems changing US$ in India?

breebauer

A friend of mine told me that they recently heard on the news, (possibly CNN or another one of the 24 hr news stations), that Indian banks were charging a 30% 'fee' to change US$. Some banks were refusing to accept US$ all together.

Is this true? Has anyone else heard this on the news?

Thanks for the help!

Nick-H

If it was on a major news carrier, then it will quite likely be on their website.

I didn't think that the dollar was that unpopular. Yet.

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the opoponax

Either way, most banks charge a much smaller fee for you to just take local currency from the ATM.

machadinha

? I thought in fact banks will charge nothing for you to make withdrawals from an ATM, however your own bank will per each withdrawal, so this is something to enquire about before you leave (these can be substantial, so if they do, make fewer and larger withdrawals. Or switch banks.)

But I can't be sure about India. Am I wrong?

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the opoponax

I think it depends on the bank.

Different banks seem to have different policies about ATM withdrawal fees, whether in or out of network. My bank gives me free use of any ATM, anywhere. But if I use another bank's ATM, they are welcome to charge me whatever fee they see fit. Before I had this account, I had an account with a different bank who charged fees wherever possible; basically all ATM use came with a fee, sometimes multiple fees if it was off-network.

More and more, in the US at least, banks are offering "free ATM" checking accounts, where you're never charged to use an in-network ATM.

machadinha

Hmm, yes, interesting. I don't think I've ever been charged by any bank anywhere for using their ATM machines -- but I've naively run up quite a bill abroad by my own bank for using their card making small withdrawals, when the system was a little newer and I just didn't know. ("Hey! This is handy! I no longer need to walk around carrying wads of money!" Forget it, although I think this has actually improved. Last time -- not in India -- I wasn't charged by either bank, whether my own or the ones where I made the withdrawals.)

But, yes, I'm sure it varies all over the place. Something to enquire about with your bank before you leave, most definitely.

I've not heard anything on that original dollar story either btw, but I suppose it's possible. And I would likewise assume it should be easily retracable on the web if it's been in the news. Could just be a misinformed spin-off story of that recent business about Indian monuments no longer accepting cash dollars (I wasn't aware they did in the first place, but then I don't usually carry them around).

the opoponax

I'm planning on opening a new checking account with HSBC, which has branches and ATMs in most major Indian cities, as well as in the US (and lots in other countries, too!). Which will reduce the number of charges and confusion about in or out of network ATM's, as they consider HSBC ATMs overseas part of the same network as their American ones.

It will also reduce my worries about not finding ATM's that are compatible with my card, and HSBC's presence in India is a major load off in terms of any sort of financial problem I might run into. It is REALLY not fun to get screwed over by your American-only bank in a foreign country. Not fun at all.

breebauer

Ok, I see that my friend did not hear the entire news story.

He probably heard the part about the Taj not accepting US$ and that maybe the US$ has devalued 30% or some thing like that against the rupee this year.

It all makes sense to me now. I couldn't see anyone NOT accepting US$. It's still money right?

When I was in Ecuador years ago, they had a coup, their entire banking system collapsed, and they abandoned their own currency. Their currency was losing 25% per day in the first 2 days after I got there. Then it was abandoned.

One day it was good, the next day it was worthless, all of it!!! Anyone with money in the bank was screwed. No one could use a credit card for anything. It didn't matter if you had a foreign credit card or not. There were no banks to pay it, or any bank accounts for businesses to deposit it to. I wasn't even able to change my plane ticket. (Thankfully I had a decent amount of cash on me.)

The world bank apparently flew a plane in full of US$ to 'dollarize' their economy. (I actually wrote a paper on it for my MBA.) So the thought of another country just not recognizing the US$ or charging an insane fee just to handle it did seem a little off to me.

Thanks!

rangss

???

My bank never charges me for drawing money from an ATM of some other bank...how would it charge for its own?

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machadinha

I've heard it's like that in some countries, Rangss. Insane, I know.

Again, being charged by your own bank for withdrawals abroad is not at all uncommon, although at least with banks here (for overseas withdrawals) this seems to be improving. You don't get charged here for using your own or anyone else's ATM machines -- although today you do pay a small annual fee for the "privilege" of using that card in the first place I guess the question of who is providing them with their interest is better not asked.

rangss

I checked all possible sources...only the Taj story. I do not think Indian banks are as narrow minded as the Ministry of Culture

breebauer

I'm in New York, and unfortunately, we get charged a fee for just walking past an ATM, or at least it seems that way...

Some banks charge you for using their own ATM's (US$1 to US$2). Some banks charge you a fee for using another bank's ATM (US$1 to US$3), in addition to the fee that the other bank charges you for using their ATM. So, if I use an ATM that doesn't belong to my bank, it could easily cost me US$5 to take out $20. Double whammy...

My bank does the above, and when I'm overseas, gives me some horrible exchange rate for what I take out, and then to add insult to injury, it add some kind of 'usage fee' at the end of the month.

Last year when I was in Asia, the exange rate for Thai baht/ US$ was around 39:1, my bank charged me a fee for not using their ATM (none in Thailand or anywhere else in Asia, sorry) and I got charged a fee for using some Thai ATM's, and I got a crappy exchange from my bank, sometimes as low as 34:1, and I got some kind of BS 'usage fee' at the end of the month for every time I used a foreign ATM.

That was only after I called my bank from the airport to tell them that I was leaving the country, to make sure they didn't shut off my card. They didn't really care, and said there was no way of noting that on the account, so there wouldn't be a problem anyway. Of course when I got there, used it for the hotel for the first few days in Bangkok, and a few ATM's which they charged me 3 times for, they shut the damn thing off anyway. When I called them, they put me on hold.

You gotta love it.....

the opoponax

And here we have the reason I'm using my trip to India as a great excuse to switch banks... Though the bottom line is that each one is bad as any other. You just have to find the one that's best for your particular situation...

breebauer

Yeah, and they call New York 'the financial capital of the world'...

whatever....

just take my life savings and let me get the hell out of here, ok?