3.

1 Foreign Currency Exchange

The Tourism industry is a prime source for the generation of foreign exchange. The government
thus likes to keep a close tab on all foreign currency released. This is done through a strict
system of checks & records which extend to each hotel as well.

1. Hotels need to get a license from the Reserve bank of India to exchange the foreign
currency of the guest and settle their bills against the foreign currency
2. This license is renewed every year
3. Front Office Cashier is authorized by the management to act on their behalf
4. Of Course daily exchange rates are to be taken into consideration while exchanging the
foreign currency


Procedure to be followed while exchange of foreign currency

The front office Cash is the only place in the hotel where foreigners can exchange foreign
currency into rupees. The daily exchange rate is to be prominently displayed for the guests to
see. The exchange rate may differ from time to time. The following steps may be taken while
exchanging currency.

1. The currency to be exchanged should be exchangeable as per government banking
regulations.
2. Look for the passport of the guest to verify the identity of a guest. Request the guest
to produce the passport to determine the credentials and take the room number
3. Determine whether the currency can be exchanged or not
4. Fill the foreign currency exchange certificate
5. Take the signature of the guest on the certificate and the travelers cheque
6. Tallying the signatures of the guest on the certificate and the travelers cheques
7. Write the exchange rate in the certificate and find out the value in the Indian currency
8. Pay the value of the Indian currency to the guest along with the certificate
9. Receive the amount of foreign currency in cash or travelers cheques and calculate the
amount to be paid in local currency
10. Give the original copy of the certificate & total amount in local currency to the guest
11. Attach the foreign currency notes / travelers cheques with the duplicate copy of the
certificate
12. Let the third copy remain in the book for the hotel
13. Enter the transaction in the cashier sale service
14. Enter the transaction in the foreign exchange control sheet








Accepted Currencies by the RBI
Austrian Schilling
Bahrain Dinar
Bangladesh Taka
Belgian Franc
Burmese Kyat
Canadian Dollar
Danish Kroner
Germany Deutsche mark
Dutch Guilder
Egyptian Pound
European Currency Unit (ECU)
Finnish Mark
French Franc
Hong Kong Dollar
Indonesian Rupiah
Iranian Rial
Irish Punt
Italian Lira
Kenyan Schilling
Kuwaiti Dinar
Japanese Yen
Malaysian Ringgit
New Zealand Dollar
Norwegian Kroner
Omani Rial
Pakistan Rupee
Qatar Rial
Saudi Riyal
Singapore Dollar
Spanish Peseta
Sri Lanka Rupee
Sterling Pound
Swedish Kroner
Swiss Francs
Thai Baht
U.A.E. Dirham
U.S. Dollars
U.K Pound