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Union Bank of India caters to international financial needs by offering various foreign exchange
(forex) services. Here's a glimpse into their key forex operations:
● Accounts: They provide Exchange Earner's Foreign Currency (EEFC) accounts for
residents. These accounts allow holding foreign currency earned through exports,
remittances, etc. However, there are restrictions on account type (current) and credit limits
based on residency status (refer to Union Bank's guidelines for details).
● Currency Exchange: You can buy and sell foreign currency notes and traveler cheques at
their branches. They also have retention limits for foreign currency coins held by residents.
● International Payments: Union Bank facilitates sending and receiving foreign currency
through Telegraphic Transfers (TTs) and Demand Drafts (DDs). This is commonly used for
import/export payments or remittances.
● Hedging Tools: Businesses can hedge against currency fluctuations using currency futures
contracts offered by the bank. These contracts lock in an exchange rate for a future date, but
eligibility requirements and risks apply.
Union Bank follows the Reserve Bank of India's (RBI) guidelines for forex transactions. The
mechanism involves buying and selling foreign currency:
Regulatory Compliance:
Foreign exchange transactions are subject to Foreign Exchange Management Act (FEMA)
regulations. Union Bank adheres to these to ensure compliance for both the bank and its
customers. This might involve:
● KYC/AML: KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures to
verify customer identity and prevent illegal activities.
● Reporting: Reporting certain transactions as mandated by RBI.
● FEMA Compliance: Following FEMA guidelines for transactions in foreign currency
accounts.
Additional Considerations:
● Transaction Limits: Limits may apply on the amount of forex you can buy/sell depending on
transaction type and residency.
● Charges: The bank may charge fees for forex transactions, including service charges and
margins on currency exchange.
● Documentation: Depending on the transaction, you may need supporting documents like
invoices or travel documents.
Getting Started:
To use Union Bank's forex services, visit a branch or explore their internet banking options (if
available). It's recommended to:
● Contact your branch for current exchange rates and applicable charges.
● Know the documents required for your specific transaction.
● Understand any regulations or limitations that might apply.
Remember: This is a summary. Refer to Union Bank's website or branch staff for detailed
information, brochures, and the latest updates.