What is the TT buying rate?
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Short answer
The telegraphic transfer (TT) buying rate is the exchange rate at which an Indian bank buys foreign currency that arrives by wire.1 FEDAI Rule 4.4 applies the TT buying rate or the contracted rate to convert an inward remittance.1 Banks publish TT buying rates in their card rate sheets.12 Rule 76 of the Income-tax Rules, 2026 also uses it.3
| Full form | Governed by | Who needs it | Where it is used | Related terms |
|---|---|---|---|---|
| Telegraphic transfer (TT) buying rate1 | FEDAI Rules, Rule 4.4 and the general guidelines on card rates1 | Exporters who receive foreign currency by wire into an Indian bank | Converting inward remittances; converting foreign tax for tax credit13 | Card rate, mid-market rate, FX markup, forward contract |
When a foreign client's dollars, pounds or euros reach your Indian bank account, the bank converts them into rupees at a rate it chooses within FEDAI's rules. On most bank statements that rate is the TT buying rate.
What does TT buying rate mean in simple words?
The TT buying rate is the rate your bank pays you, in rupees, for each unit of foreign currency received by wire.1 Rule 4.4 of the rules of the Foreign Exchange Dealers' Association of India (FEDAI), an association of banks that deal in foreign exchange, says the exchange rate for converting a foreign currency inward remittance "shall be TT buying rate or the contracted rate as the case may be".14
- Buying: "Buying" is from the bank's side: the bank buys your foreign currency.
- TT: "TT" (telegraphic transfer) means the money came electronically, rather than as cash or a cheque.
Knowing this rate helps a freelancer, agency or consultancy see how much of an invoice is lost to the exchange spread.
Why does the TT buying rate matter for Indian exporters and freelancers?
The TT buying rate decides how many rupees you receive, so the gap between it and the market rate is a real cost of being paid from abroad.12
- Bank conversion: Unless you have a contracted rate, FEDAI Rule 4.4 applies the TT buying rate to every inward wire.1
- Large receipts: FEDAI Rule 4.3 lets banks convert remittances immediately only up to an amount set by each bank's own policy; above it, the bank credits foreign currency or converts with your consent.1
- Income tax: Rule 76 of the Income-tax Rules, 2026 uses the TT buying rate to convert foreign tax into rupees for foreign tax credit.3
A web developer receiving $3,000 a month and an agency receiving $50,000 a quarter may get different rates from the same bank, because card-rate thresholds and contracted rates differ.12
How does the TT buying rate work?
Banks set TT buying rates and publish them in daily card rate sheets.12 FEDAI's general guidelines ask banks to display their card rates prominently and to declare the threshold amounts up to which they are committed to apply them, and how often and when they publish them.1
For example, State Bank of India's sheet of 28 October 2026, 10:19 AM showed:2
| Currency | TT buy | TT sell | Bill buy |
|---|---|---|---|
| USD/INR | 94.75 | 95.60 | 94.68 |
| EUR/INR | 104.53 | 107.18 | 104.45 |
| GBP/INR | 125.12 | 127.97 | 125.03 |
SBI says these rates are for transactions between ₹10 lakh and ₹20 lakh, are to be used as reference rates, and are indicative; the final rate is the card rate prevailing when your account is credited.2
How do you check the TT buying rate for a payment?
You check the TT buying rate on your bank's published card rate sheet and on the credit advice for the payment.12
- Find the sheet: Look for the bank's card rates, which FEDAI asks banks to display prominently.1
- Check the threshold: See the amount range the card rate applies to; SBI's sheet covers ₹10 lakh to ₹20 lakh and asks customers with smaller amounts to contact the branch.2
- Compare the advice: The rate on your credit advice is the one prevailing when the account was credited.2
For how to compare rates and providers, read FX markup on export payments.
What is the difference between the TT buying rate and the TT selling rate?
The TT buying rate is what the bank pays when it buys your foreign currency, and the TT selling rate is the higher rate on the selling side of the same sheet.12 On SBI's sheet above, the USD TT buying and selling rates differ by 85 paise.2
| Rate | USD/INR on SBI's 28 October 2026 sheet | Best for |
|---|---|---|
| TT buying rate | 94.75 | Exporters converting foreign currency received by wire |
| TT selling rate | 95.60 | Customers buying foreign currency from the bank to send abroad |
The table uses SBI's sheet of 28 October 2026, 10:19 AM.2
What do people get wrong about the TT buying rate?
The common mistake is treating the TT buying rate as a fixed, market rate.12
- Market rate: The TT buying rate is the bank's own rate, below its selling rate.2
- Guaranteed rate: SBI says its card rates are indicative and the final rate is the one prevailing at the time of credit.2
- No alternatives: FEDAI Rule 4.4 allows a contracted rate in place of the TT buying rate.1
To discuss a contracted rate, read how to negotiate FX rates with your bank.
Which terms are related to TT buying rate?
These terms come up with the TT buying rate:
- Card rate: the published rate sheet where the TT buying rate appears.
- Mid-market rate: the reference rate used to measure a bank's spread.
- FX markup: the cost built into a conversion rate.
- Forward contract: a way to agree a contracted rate in advance.
- Inward remittance: the payment the TT buying rate converts.
How did we verify this?
We checked this page against the sources below on 30 October 2026. Read our methodology or report an error.
- [1]FEDAI Rules, updated up to 20 August 2026, General Guidelines 2 and Rules 4.3 and 4.4
- [2]State Bank of India, Forex Card Rates, 28 October 2026, 10:19 AM (checked 28 October 2026)
- [3]Income-tax Rules, 2026, rule 76(7)(b) and (18) (Income Tax Department)
- [4]FEDAI, home page: about the association (checked 28 October 2026)
Frequently asked questions
Is the TT buying rate the same as the mid-market rate?+
No. The TT buying rate is a bank's own buying rate for foreign currency, and State Bank of India's sheet shows it below its TT selling rate, at 94.75 against 95.60 for USD on 28 October 2026.2 The gap between the bank's buying and selling rates is the bank's spread on the conversion.
Does an Indian bank have to use its card rate for an export payment?+
FEDAI asks banks to declare the threshold amounts up to which they are committed to apply card rates.1 State Bank of India's sheet says its card rates are for transactions between ₹10 lakh and ₹20 lakh, are indicative, and that the final rate is the one prevailing at the time of credit.2
Can an Indian exporter get a better rate than the TT buying rate?+
FEDAI Rule 4.4 applies the TT buying rate or the contracted rate, so a rate agreed with the bank in advance, for example through a forward contract or a negotiated deal, can replace the card rate for an inward remittance.1 Ask the bank what contracted rates it offers for the size of receipts you expect.
Is the TT buying rate used for income tax?+
Yes, in some rules. Rule 76 of the Income-tax Rules, 2026 converts foreign tax paid into rupees at the telegraphic transfer buying rate on the last day of the month before the tax was paid or deducted.3 An Indian exporter claiming foreign tax credit therefore needs the TT buying rate for that date.
Do State Bank of India's published TT buying rates apply to small export receipts?+
State Bank of India says the rates on its card rate sheet are for transactions between ₹10 lakh and ₹20 lakh and are reference rates.2 For amounts under ₹10 lakh, State Bank of India asks customers to contact the nearest branch, so a smaller export receipt may be converted at a different rate.
This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.
Keep reading
What is the FX markup on export payments, and how do you measure it?
How the exchange rate on a foreign payment hides a cost, how to measure the markup against the mid-market rate, and what banks and platforms publish about it.
PaymentsHow can an exporter negotiate better FX rates and charges with an Indian bank?
A practical script for Indian exporters to ask their bank for a better conversion rate and lower forex charges, using published schedules, FX-Retail and EEFC.
GlossaryWhat is a card rate in foreign exchange?
A bank's card rate is its published daily exchange rate list for buying and selling foreign currency. Why exporters look at the TT buying rate and how to compare.
GlossaryWhat is the mid-market rate?
The mid-market rate is the midpoint between the buy and sell price of a currency pair. How Indian exporters use it to measure the FX markup on foreign payments.