By Syam, JesTiny Guide · Last checked: 21 October 2026

Bank vs Airport vs Online: Where to Exchange Currency in India

Indian travellers usually have three choices for buying foreign cash: a bank branch, a counter at the airport or an online forex platform that delivers to your door. Every site that sells one of these says its own option is the cheapest, so this guide does something different. It sets out what each published source claims about the gap from the mid-market rate, notes who is selling what, explains the 2026 Tax Collected at Source (TCS) rules, and is plain about what we could not confirm. We did not measure any rates ourselves, so we do not name a single cheapest option.

The short version

• Nobody we found measured all three options side by side. The figures below come from providers, finance sites and one newspaper article, and they do not agree.
• For bank branches, two sources give a range: 2-5% (BookMyForex's 2023 comparison) and 1-2.5% (HappyFares, 2026). Business Standard (April 2025) says some top-tier Indian banks charge 3-5% on remittances.
• For airports, the sources range from 3-8% (HappyFares, 2026) to "upto 12%" (a 2013 BookMyForex post whose own measured examples were 6.5-6.6%). None of them measured a specific airport today.
• For online platforms, we found no independent measurement. The platforms themselves advertise "true zero markup" on certain cards and cities, with conditions, and one platform lists a 0.3% margin on international transfers.
• From 1 April 2026, TCS on overseas tour packages is 2% from the first rupee, and TCS on self-funded education and medical remittances above 10 lakh rupees is 2%. Other purposes stay at 20% above 10 lakh rupees.
• One card-focused site says international credit card spending is outside the Liberalised Remittance Scheme (LRS) and TCS. It cites no rule and says the position could change.

What "above mid-market" means

The mid-market rate is the rate banks trade at between themselves, the one Google or XE shows. Business Standard (23 April 2025) says retail customers pay a rate above it, and that this margin is often hidden. The gap can come as a wider rate, as a fee, or as both. When a source says a provider is "3% above mid-market", we read that as: you pay 3% more rupees for each unit of foreign currency than the mid-market rate would cost you. Always compare the final amount you receive for the rupees you hand over, not the headline rate or the commission.

What each source says

Treat these as claims. Several come from firms that sell forex.

Bank branches

• BookMyForex (comparison post dated 18 September 2023) lists banks at "usually between 2 to 5%" for currency exchange and at 2-3.5% over base rates for forex cards. BookMyForex is the seller on the other side of that comparison, and the post cites no sources for its bank figures.
• HappyFares (published 30 April 2026) says a bank branch "typically gives you a 1% to 2.5% margin over the interbank rate". It gives no method. The site is a flight-booking site, and it links to its own booking service.
• Business Standard (23 April 2025) quotes Wise's Asia-Pacific head as saying banks globally charge an average margin of 7%, and that some top-tier Indian banks charge 3-5%, in an article about sending money abroad. The article's low figure comes from Wise, which sells transfers.

Airport counters

• HappyFares (2026) says airport counters sit "3% to 8% below the interbank rate", attributing this to "RBI data and multiple consumer comparisons" without specifics. Its summary at the top says "often 3-5%", which conflicts with the body.
• BookMyForex (a 2013 post) says airport rates can carry margins "of upto 12%", but the only measured examples in it are the US dollar at 6.6% and the pound at 6.5%, taken from a staff member's photo of the airport board late at night, compared with BookMyForex's own rate card. The data is old and the seller is a competitor.
• Business Standard (2025) lists buying forex at "expensive locations such as airports or hotels" as a mistake to avoid. It gives no percentage.

Online platforms and home delivery

• BookMyForex advertises "True Zero Markup Rates" for forex cards, and its own 2023 comparison lists about 0.3% over base rates for money transfers. Its footnote says zero-margin rates apply only to certain forex card currencies, in select cities, for orders of 1.5 lakh rupees or more, with a promo code.
• Doorstep delivery of currency notes is listed in the same post as same-day, in select cities, excluding holidays, with payment and documents submitted before 1 PM. It does not give a handling spread for notes.
• We found no independent test of what an online platform charges for cash delivered at home.

To see what a percentage gap costs on your amount, use our mid-market rate guide.

"Zero commission" does not mean zero cost

This section is our reading, not a sourced fact. A counter that says "no commission" may still earn its money in the rate it gives you, because the spread between its buying and selling rates is where the margin sits. Both HappyFares and BookMyForex describe margins and loading fees as separate from commission. The only reliable check is to compare the final amount you would receive with the amount the mid-market rate would give.

Fees on cards and ATMs

If you carry a card rather than cash, there are other charges.

• HappyFares (2026) says credit cards charge 1.5-3.5% forex markup on international transactions, with premium cards 0-1%, and debit cards 2-3.5% plus 100-300 rupees per ATM withdrawal. No method is given.
• BookMyForex's 2023 comparison lists banks' forex card ATM fees at the equivalent of USD 3-7, against USD 2 for its own card, and bank forex card issuance at roughly 500 rupees.

These are one seller's and one booking site's figures. Your own card issuer's fee schedule is the number that matters. This is our advice, not a sourced fact: read it before you travel.

Decline dynamic currency conversion

Dynamic currency conversion (DCC) is when a card terminal or ATM abroad offers to charge you in rupees instead of the local currency. Business Standard (2025) advises avoiding it when using ATMs or cards abroad. If a machine asks, choose the local currency.

TCS: what changed from 1 April 2026

TCS is tax the seller collects when you remit money abroad under the Liberalised Remittance Scheme (LRS). It is not a fee, and it shows in Form 26AS, where it can be adjusted against your income tax or claimed back when you file your return. The pages we read agree on the main points.

• No TCS on the first 10 lakh rupees of LRS remittances in a financial year. Sschandak (published 16 June 2026, last reviewed 25 September 2026) says this limit rose from 7 lakh rupees from FY 2025-26.
• Above 10 lakh rupees: 2% for self-funded education and medical remittances, nil for education funded by a financial-institution loan, and 20% for investment, gifts, maintenance and other purposes. Sschandak and BookMyForex (a February 2026 byline, modified April 2026) both give these rates.
• Overseas tour packages: 2% from the first rupee, with no threshold, from 1 April 2026. Sschandak says the earlier rate was 5% up to 10 lakh rupees and 20% beyond.

BookMyForex's own examples show how this works. A tour package of 8 lakh rupees attracts TCS of 16,000 rupees, against 40,000 earlier. A tour package of 15 lakh rupees attracts 30,000 rupees, against 1,50,000 earlier. An education remittance of 15 lakh rupees attracts 10,000 rupees on the 5 lakh rupees above the threshold. An investment remittance of 15 lakh rupees attracts 1,00,000 rupees on the 5 lakh rupees above the threshold.

Both sources are advisory sites, not the Income Tax Department or the Finance Act. We did not read the Act itself, so check the current text or ask a tax adviser for a specific case.

Does TCS affect a typical traveller?

Most holiday travellers will not reach 10 lakh rupees of LRS remittance in a year just by buying forex, so the 20% rate is unlikely to apply to ordinary spending. A pre-booked international tour package through an agency is the exception we found, because the pages above say it attracts 2% from the first rupee. This is our reading of the sources above. We did not find a source that settles how an airline ticket, a hotel booking or a package of mixed items is treated, so ask the agency what it will collect before you pay.

Credit cards and LRS

Cardtrail (published and last updated 21 March 2026) says credit card spending abroad is "not counted under the Liberalised Remittance Scheme" and is "currently exempt from TCS". The article cites no circular, notification or section of the Act. It also says the position "could change mid-year". It says a May 2023 government notification to bring credit cards under LRS was withdrawn after pushback, without giving a notification number. HappyFares does not address this point.

Because of that, we treat the credit-card exemption as unconfirmed. If you plan to put a large sum on a credit card abroad, check the current rule with your card issuer before you rely on it.

When each option fits

This section is our advice, based on the sources above. It is not a sourced fact.

• Airport counter: only for a small amount you need straight away, such as a taxi or a meal on arrival. Compare the board rate with the mid-market rate before you hand over cash, and work out the gap as a percentage.
• Bank branch: reasonable if you already bank there and want a card or notes without registering anywhere new. Ask for the final amount in the foreign currency, not just the rate.
• Online platform: worth comparing for a planned trip, because it lets you see quotes in advance. Read the conditions that come with any "zero markup" offer, such as minimum order, cities, currencies and promo codes, and check what the delivery costs.

What we could not confirm

We could not confirm a measured rate for any Indian airport today, any independent measurement of online platform margins, or the Income Tax Department's own wording on the 2026 TCS changes.

A simple plan

1. Decide how much foreign cash you really need, and keep the airport purchase small.
2. Look up the mid-market rate on the day you plan to buy.
3. Ask at least two providers, such as your bank and an online platform, for the final amount you would receive for the same rupee amount.
4. Divide the difference by the mid-market amount to see the gap as a percentage.
5. On cards and ATMs abroad, choose the local currency, and check your own issuer's fees first.
6. If you are booking a tour package, ask the agency how much TCS it will collect before you pay.

FAQ

Which is cheaper for buying forex in India, a bank, the airport or an online platform?
We could not confirm it. The published figures are the sellers' own, they disagree, and none measured all three together. Compare the final amount for the same rupee amount from each.

Are airport rates always the worst?
Several sources say airport counters charge more than other options, with figures from 3% to 12%, but none measured a specific airport today. Check the board rate against the mid-market rate yourself.

Does "no commission" mean no extra cost?
Not necessarily. A provider can build its margin into the rate. Compare the final amount you get, not the label.

Is there TCS on tour packages?
The sources we read say overseas tour packages attract TCS of 2% from the first rupee from 1 April 2026. Confirm with the agency, because we did not read the Act itself.

Is credit card spending abroad outside TCS?
One card site says so as of March 2026, but cites no rule and says it could change. Check with your issuer.

Should I use dynamic currency conversion abroad?
Business Standard advises avoiding it. Pay in the local currency.

Sources and how we checked them

Checked on 21 October 2026. Where we call something confirmed, at least two of these sources agree, or an official source says so directly. None of these is an official source, and several sell forex, transfers or bookings.

• BookMyForex, forex seller, A Comprehensive Comparison: BookMyForex vs Banks for Forex Services, 18 September 2023.
• BookMyForex, forex seller, Currency Exchange at the Airport: Why You Shouldn't Do It (2013 post, page modified 2025).
• BookMyForex, forex seller, TCS on Foreign Remittances, New Rates From Budget 2026 (February 2026 byline, modified April 2026).
• HappyFares, flight-booking site, Currency Exchange in India 2026 (published 30 April 2026, modified 23 June 2026).
• Business Standard, newspaper, Buying forex: Compare exchange price offered by seller with interbank rate, 23 April 2025 (partly paywalled).
• Sschandak, advisory firm, TCS on Foreign Remittance under LRS: 10 Lakh Threshold and Rates (published 16 June 2026, last reviewed 25 September 2026).
• Cardtrail, card-comparison site, RBI Limit on International Credit Card Transactions, 21 March 2026.

Editorial note: The counter, rate and airport information in this guide is editorial and is not paid for. Rates and fees change, so confirm the final rate at the counter before exchanging.