Taking rupees into India

fitzy_b

Hi guys,

I was at the bank today and asked whether they sell Rupees. Surprisingly I was told that they do.

As it is illegal to take rupees in or out of India, I am wondering what to do, and where I am likely to get the better rate - India or Australia.
If Australia, is it worth the risk? What is the penalty?

Thanks,

Fitz

capt_mahajan

Penalty in India will be minimum confiscation, maximum fine or jail term if the amount is high.

Generally, I would think that unless large amounts are being talked about, it wouldnt make much of a difference to savings overall. And if large amounts are being talked about, I would recommend change in India legally, because otherwise Indian laws will be broken with consequences.

No idea if the rates in India will be better.

aadil

Not worth getting Rupees into India as you get a better deal for your dollars or other currencies here. Just get some cash in dollars and a credit or debit card and do not get any travellers cheques (they are not easily encashed except if you want to pay for the whole amount and that too takes a lot of time to encash it). Please inform your bank or credit card company that you will be travelling outside your country so if there are any transactions from overseas then not to dishonour the payment as it is done sometimes to prevent theft over the internet. There are lots of ATM's all over the country and even in some very remote places. If you are caught getting in Rupees then it can be simply confiscated besides the problems involved with money laundering which you will be accused of commiting a serious crime according to Indian law.

Cheers,
Aadil.

__________________
Climb high; climb far;
Your goal, the sky,
Your aim, the stars!!!

edwardseco

For your initial expenses a small amount is a nice safety factor indeed. From my experience manure happens. You arrive and all exchange bureaus are closed flat out. Even the old trick of leaning over the counter to find the sleeping clerk avails of nothing. You arrive while riots are going on with no cab driver willing to risk driving across town... unless you have a bundle of cash, not promises, cash. Admittedly, I have a penchant for bad luck. However, they are never going to ask or care about small amounts (don't ask, don't tell). This assumes you aren't carrying other items, 100 biscuits of gold, a kilo of drugs, ten laptops, etc. Consider the exchange costs though as its a worse rate. Its done routinely by many, many people..

vandy

Fitzy, the Exchange rate for Aussie to $US is pretty good at the moment,thats what I would be doing.

See rate for Aussie $ to Rupees (33), and see the rate for Rupees for $US (45)?

vandy

fitzy_b

Good Call Vandy

Brisso

US$ more like 39 rupees

fitzy_b

actually Vandy, not such a great call. haha.
Just had a look on the net, and:
1usd = 39.53inr
1aud = 35.74inr
iusd = 1.106aud

So there are no arbitrage opportunities.
i.e. you're going to get the same number of inrs whether you convert straigh from aud or go through usd... and that is assuming no transaction costs too.

Was a nice idea though! Will keep an eye on it.

cheenee jeenee

Thanks for the info it is also what I needed to know
We will take Aussie dollars and credit card.

Brisso

That's what floating exchange rates are about lads

Brisso

Aussies not so easy to exchange in some places - US or Euro or pounds is better

fitzy_b

yes, but anomolies do exist and sometimes the market can misprice them breifly. As would be the case if the rates were what Vandy quoted.

cheenee jeenee

Ok but wont I lose money if I exchange twice, first to US then to Rupees?

fitzy_b

yes, you'll lose money on transaction costs.

vandy

According to this mornings newspaper in Perth.

$AUD 1 = $US 0.9070

When I was in India late last year $US 1 = 43rps

Captain, youre in India,whats the rps rate to $US1
at this moment.

vandy