What Is TT Buying Rate?

Banks quote more than one rate for the same currency. The TT buying rate is the rate the bank uses when it buys foreign currency from you by electronic transfer, which is how most export payments arrive. A bank also has a selling rate, which is higher, for when it sells currency to a customer. The difference between the two rates is how the bank earns on currency conversion. The buying rate is also generally different from the mid-market rate you see on a currency website. A lower buying rate means fewer rupees for each unit of foreign currency. Banks may change the rate during the day, so the rate on the credit date matters. The related page on the mid-market rate explains the benchmark most people compare against.

For example, say the mid-market rate for a currency is INR 80 on the day your payment is credited, and your bank's TT buying rate is INR 79. A payment of 1,000 units of that currency is credited as INR 79,000, which is INR 1,000 lower than the benchmark conversion.

• Rupee amount: The buying rate sets how many rupees you receive for each unit of foreign currency. Even a small difference adds up over many invoices.
• FEMA: The FEMA Export and Import Regulations, 2026 require full export value to be realised within nine months of the invoice date for services (Regulation 5). The rate at which payments convert affects the rupee value recorded against each invoice.
• Bank compliance: Your AD bank records the inward remittance in foreign currency against the export entry in EDPMS, so the conversion rate does not change the compliance record, but it changes your rupee credit.
• Income tax: The rupee amount you record as income depends on how you convert foreign receipts. Confirm the method with your tax adviser.
• Cost of receiving: Under Regulation 19(3), charges levied by an authorised dealer bank must be reasonable and proportional to the services rendered. The buying rate and any fee are worth comparing between banks.

The bank applies its TT buying rate at the time it converts the incoming foreign currency to rupees.

1. The client sends foreign currency by electronic transfer to your Indian bank account.
2. Your bank receives the funds and checks the remittance details and purpose.
3. The bank converts the foreign currency to rupees at its TT buying rate for that currency on that day.
4. The rupee amount is credited to your account, and the bank may apply a separate fee.
5. You compare the credited amount with the invoice and the benchmark rate on the same date.

Divide the rupee amount credited by the foreign currency amount received and compare the result with the mid-market rate on the credit date. A worked example uses hypothetical numbers.

1. Note the foreign amount received, for example USD 2,000 (hypothetical).
2. Note the rupee amount credited, for example INR 1,64,000 after any bank fee (hypothetical).
3. Divide 1,64,000 by 2,000 to get an effective rate of INR 82 per USD.
4. Look up the mid-market rate for the credit date, say INR 83 (hypothetical).
5. The difference of INR 1 per USD, or INR 2,000 in total, is the cost of conversion; ask your bank for its rate sheet to confirm the buying rate.

• Same as Google rate: The mid-market rate shown on currency sites is a benchmark. A bank's buying rate usually differs from it.
• One fixed daily rate: Banks can update their rates during the day, so the rate depends on when the conversion happens.
• Fees are included: The buying rate is a rate. Separate fees may apply on top, so compare the final credited amount.
• Same at every bank: Each bank sets its own rate, so two banks can credit different rupee amounts for the same payment.

• Card rate: A bank's standard published rate for a currency before any customer-specific adjustment.
• Mid-market rate: The midpoint between buy and sell prices in the interbank market, used as a benchmark.
• FX markup: The margin added to the base exchange rate when converting currency.
• Value date: The date on which a transaction is settled and funds become usable.
• Inward remittance: Money received into India from abroad through the banking system.

Every rule and definition on this page is linked to its official source, checked on the dates below.

1. RBI, Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (FEMA 23(R)/2026-RB), Regulations 4(2), 5(1) and 19(3) (checked 9 Oct 2026)