Is the spread on FX-Retail always 20 paise, or can it be negotiated? After I buy USD, where is it held and for how long? Does the same work for converting USD back to INR, and is a markup charged on inward conversions too?
1 Answers
- It's not fixed at 20p. ICICI and HDFC have this fixed at 20p only on Bharat Connect on UPI apps (like BHIM). But my IDFC shows 100p in the same app. Your RM may offer a similar/better rate outside FX-retail too.
2 and 3. You can't keep USD in your account after buying on FX Retail. It has to be used in an outward remittance. If the deal is booked on FX Retail (and not on Bharat Connect) on SPOT, it has to be used within T+2 days. - Bharat Connect FX Retail (like on the BHIM app) can't be used for inward remittances. But FX retail can be used for that. You can sell USD on FX retail, and your bank can convert your incoming USD to INR at that traded rate (minus their markup). The same can also be done with the bank directly w/o an FX retail platform.
- Yes
- Yes. There would be a markup, say 20p; so if you sell on FX retail at a 95.8 rate, bank would convert at 95.6 (after deducting 20p markup). Plus, currency conversion tax/GST would be charged.
