The post demonetization cash crunch scenario sent shock waves across the country. Now almost three months after the announcement, the situation is slowly coming back to normalcy as the RBI is taking several measures like raising the daily withdrawal limit. Like any retail business, even Forex market felt the jolt of demonetisation. Both the NRIs and foreign nationals and the Indians travelling overseas felt the pain of demonetisation. While there were no changes in the RBI guidelines with respect to the buying and selling of forex, the shortage of new currency notes made it impossible to transact in cash even where the amount was below the permissible limits.
The Airport Forex counters as well as Banks had no other choice but to refuse customers coming to them for exchanging currencies. Banks, found it extremely painful to handle the customers coming for basic banking facilities such as Deposits and Withdrawals, forget the forex transactions.
The saviour came in the form of the Digital Push by the government and the emergence of Online Forex Platforms that accepted payments electronically. The online platforms ensure that an Indian travelling overseas does not have to run from pillar to post for buying forex for his long planned International Holiday. These platforms not only accept payments through credit cards, Net Banking, etc., but also offer whole lot of other benefits to its customers.
The online Forex portals helped their customers sail through the tough times post demonetization and it seems, will continue to thrive given the kind of value they bring on board. Some of the benefits that they offer to customers are:
1. Competitive rates:
Few of the online players in the forex space are backed by leading money Exchange companies with Pan India Delivery Network, while others are tied up with Multiple companies that have their Money exchange stores. They offer better exchange rates than banks or local money changers, allowing customers to save money on their foreign-exchange related transactions.
Considering that Forex rates are very volatile, online Forex players give customers the convenience to place an order at their desired rates through features such as “Rate Alerts”. With access to real time rates, customers can now be up-to-date with the currency exchange rates and buy it immediately without waiting to go physically to a bank or a money changer. This is especially crucial for business and leisure travellers as the difference in rates can make a huge difference to their travel plans.
This is one of the most important factors that sets apart online players from the money changers or banks. With the help of technology, customers have the convenience to buy or sell foreign currency anytime, anywhere without having to run around looking for the right company. By opting to buy or sell currency online using your computer or mobile phone, one can better manage time on a busy day and still not miss out on getting the best rates. The best way to look for an online forex exchange site is to find one that allows you the most flexibility, such as doorstep delivery.
3. Safety & Security
The travel industry in India is growing at an exponential rate, by 2020 it is expected to contribute 7.2 percent to the GDP. With the growth in the travel industry the number of people wanting to buy and sell Forex will also increase exponentially. The government is taking several steps to promote digital economy and the budget announcements acts as a testimony to the fact that India is at the cusp of digital revolution and the push by the government for digital payments accelerates the opportunities for Fintech start-ups.
Inputs by Yash Sharma, CEO of Quick Forex www.quickforex.in