With Indians going global and dealing in international trade, currency exchange is very common. Indian Rupee is now exchanged anywhere in the world. However, it is still week compared to the US dollar, GB Pound and Euro, so the exchange rate varies according to the vagaries of the day-to-day market. For the common trader or professional who wished to invest in currency exchange the best way to do is through official channels.

 Banks, forex institutions, authorized travel agents are the only ones who can exchange the rupee to any other currency. At international airports, authorized cells can be approached for currency exchange. When a person goes abroad for a holiday or for business, a certain slab is reserved for exchange. Any amount of currency cannot be exchanged. Since there are restrictions some people try to smuggle hard cash in suitcases, which is an offense, and if caught they can be deported or not allowed to leave the country, without giving proper explanation.

Normally currency exchange takes place when an NRI wishes to deposit monies in Indian bank account, an Indian is traveling abroad, when a foreign tourist enters India and needs Rupees to deal in. Reserve Bank of India is the governing authority, which decided the value of the rupee. The currency rate fluctuates ever day, depending on the trading at the stock market. In India, as long as the government is stable the stocks are stable and so is the economy. Everything is linked on the performance of the government at the center.