Finance, Forex and Investments

Need help please! How much to give?

I have a question. I am coming to India (i'm American with Indian parents) on business, but I hope to see some family there. I have an uncle, who is relatively poor (no job, lives off his wife's family I think- about 65 yrs old). I want to bring him some money, nothing too outrageous, but enough for a month's living at least. Again, he has no job. He's not beggar-poor, but I know he's poor. I think he might be lower middle class. I have no idea what an average person needs to make it for a month or two in India. What is the average monthly income of the average person in India? Also, should I give him dollars (he can convert himself, is it hard since he has no car) or should I give him rupees? Also, one last thing, the exchange rate is currently $1 = 40 INR. That's what the internet says. I know when I get there it's going to be way different. Does anyone know the REAL exchange rate, including fees? What's the best place to exchange my $$$? Thanks!

Public Comments

1. in the bank . You can see exchange rate daily on internet, It varies daily
2. Depends on where he lives. In the cities it would be around 10,000 Rs and in the small towns around 6000-8000 Rs. Banks would be your best bet to exchange dollars. Whatever the rate is today is likely to change and the banks dont cheat and you would get the rate as of that day. And the amount of money i mentioned above is what a lower middle class person would need per month.
3. Avg. monthly income of the average person in India is too low b'cause of too much population and in these population poor are more than richer. So, it's around Rs.3000 avg.salary of avg. person per month in India. But it also depend upon the city they live.If he is in mega city then it comes to Rs. 5000.and if he is from 4main cities i.e Mumbai, Kolakata, Chennai and Delhi it is better to give him Rs. 8000 per month. Now the exchange rate is currently $1=39.59 INR.It is fluating everyday due to market but now a days they fix as 40 INR. and u can get best deal from STATE BANK OF INDIA OR WESTERN UNION MONEY TRANSFER.
4. I would rather you give him liberally, not for his spending for a month, as you feel. You may create an opportunity for him, so as to enable him to make a decent living with whatever little you can give me. Help him to be self reliant even in his old age rather than enjoy a temporary bounty from you.
5. The exchange rate is not very different in the banks or with the private exchange counters. It is better to give him Rupees as it will be more in numbers. - Average income of a lower middle class person varies between Rs. 5000 to Rs. 20000 per month. You can decide the amount accordingly.
6. You can consider Rs. 10,000/- per month for 2 persons of middle-class family as reasonable which comes to 250 dollars. It is better you give in rupees. As far as converting dollars to rupees is concerned, there is alot of cheating going on. Even leading private exchange dealers cheat. It would be better to ask at least a couple of banks. My experience with State Bank of India is good. I suggest you ask conversion rate with State Bank of India and Canara Bank. My children send me remittance from USA using 'quick remit' facility of HDFC Bank which I have found to be the best. Remember that the exchange rates are different for buying and selling dollars. You will need to specify that you want to convert dollars to rupees. (i.e., sell dollars). If a dollar is 40 rupees on a day, you may get 39.50 and buy it for 40.5. Private dealers may charge a rupee more per dollar.