When you suffer from a normal fever, you visit the general doctor at the hospital, but when you suffer from some specific symptoms of a particular disease, you tend to visit a doctor who has done specialization in it. The difference between the banks and money changers can’t be explained better than this.
Banks offer all financial services starting from debit cards to forex cards. But the thing you need to note here is that forex services are not the main service of a bank and they offer it as an add-on service. And so, it comes with some limitations.
The first difference comes in the form of exchange rates. The exchange rates keep changing at every instant of time, and so to get the best exchange rates, we have to keep a live track of the rates. But the banks quote the same exchange rate throughout the day whereas, money changers keep changing it. You lose money here since the rate of 1 dollar in rupees today will not be the same throughout the day. So, if you chose the best money changer, you get the best forex rate when you convert INR to USD or AUD or any other foreign currency.
Since money changers are specialized in the forex market, they have a variety of services that are even customized for the needs of the customer. They do currency exchange all day and in large sums which enables them to quote null or very fewer transaction rates and service rates.
These three places are where you lose money or gain money when you send money abroad for any purpose. And these areas are where the RBI authorized money changers to perform better than the banks.
Despite these, there are many advantages you receive when you chose a money changer for example doorstep pick up and delivery of your forex product, and so on. But make sure you have chosen a trusted RBI authorized money dealer for your forex requirements and not fall prey to any fraudulent money changers who offer attracting discounts and offers.