If you are receiving foreign currency cheques from abroad, you can directly deposit your foreign currency cheques into your bank account in India. Once your bank receives your foreign currency cheque, it is sent to the corresponding countries for collection of funds, after this process amount is deposited in your account in Indian rupees.
Your account will be credited at the prevailing foreign exchange rate applicable on the date of foreign currency cheques credit.
Most of the banks in India accepts foreign currency cheques in different currencies like USD, Canadian Dollars, SGD , UAE Dirhams, GBP, Euro, JPY, Australian Dollars, Swiss Francs, Hong Kong Dollars and etc. Commission charges apply for foreign currency cheque deposits.
How to I encash foreign currency Cheque in India?
The procedure is simple like enchasing normal cheque. Just go to your bank and deposit the foreign currency cheque the way you deposit your indian cheque. Fill the deposit slip/challon ( tell the teller that this is a foreign currency Cheque) with the cheque details and drop it in the clearing box.
Clearing will take 14 to 21 days then it will get deposited in to your account. The time taken for transfer is different for different banks.
How long it will take to encash Foreign Currency Cheque?
Normally it would take about 14-21 days to credit the account to that very instant! (The time taken for transfer is different for different banks). Collection period varies depending on the country, local clearing regulations and location of the bank on whom the cheque is drawn. Cheques drawn in one currency payable in another country where currency is different will take a longer period to process. For e.g. A cheque drawn in USD payable on a bank in Singapore or Cheque drawn in GBP payable on a bank in South Africa or Cheque drawn in USD payable in Canada.
for example, ICICI bank has 8 day clearance system for cheques in the following currencies from their respective countries:
- USD in US
- GBP in UK
- EURO in EU
- AUD in Australia
- SGD in Singapore
- CAD in Canada
Currencies accepted as Foreign Currency Cheque in India
ICICI Bank has nostro arrangement in the following currencies to process foreign currency cheques: USD, CAD, GBP, EUR, CHF, SGD, AUD, NZD, AED, HKD, JPY and ZAR
HDFCBank accept cheques of various currencies like USD, GBP, Euro, JPY, Australian Dollars, Canadian Dollars, UAE Dirhams, Hong Kong Dollars and Swiss Francs.
Charges – Encashing cheque?
What are the charges to cash Foreign Currency Cheque ?
Private Banks charge only nominal amount to cash foreign currency cheques. Usually, it will be certain percentage of the amount. The charges to encash Foreign Currency Cheque is about Rs 300 per draft( charge varies between bank to bank).
HSBC :Foreign Currency Conversion Fee is INR 50 (plus currently applicable service tax of 10.30% of the fee) and Foreign Currency Cheque Clearance 0.56% of the value of the cheque or INR 337 whichever is higher
ICICI Bank: Provisional Credit (Credit in 8 days) -0.25%, subject to minimum of Rs. 350. There will be a foreign currency conversion charge of INR 25 (inclusive of Service Tax).
Banks which accepts cheque in a foreign currency ?
Nationalized banks and private banks will accept foreign currency cheques in a wide range of currencies. Some of the banks which accepts foreign currency cheques in India
StateBank Of India
Bank of Baroda
Standard Chartered Bank
and more banks …..( check with your bank)