Exchange Rates in India

This article discusses the different types of exchange rates that are quoted in the newspapers. It explains the difference between TT-Bill Rate, Bill Rate, Currency Notes and Traveller Cheque Rate. It also discusses the exchange margin and transit time charges.

Questions

• What are the different types of exchange rates that are quoted in the newspapers?
• What is the difference between TT-Bill Rate and Bill Rate?
• What is the exchange margin?
• What are transit time charges?

Answers

• The different types of exchange rates that are quoted in the newspapers are TT-Bill Rate, Bill Rate, Currency Notes and Traveller Cheque Rate.
• TT-Bill Rate is the rate for a sight draft or a bill to be paid immediately. Bill Rate is the rate for a time draft or a bill that is to be paid at a later date. Currency Notes Rate is the rate for buying and selling foreign currency notes. Traveller Cheque Rate is the rate for buying and selling traveller cheques.
• The exchange margin is the difference between the buying and selling rates of a currency. It is the profit that the bank makes on each currency exchange transaction.
• Transit time charges are the charges that are added to the exchange rate to cover the lag in payment to the bank in the case of time drafts or bills for collection.