Choosing how to carry money abroad affects both safety and cost. Most travellers use a mix of a forex card, a little cash and a backup bank card.
Forex cards
A prepaid forex card is loaded with foreign currency at a fixed rate before you travel. It works at shops, restaurants and ATMs abroad, and protects you from rate changes during the trip. Many cards hold multiple currencies.
Cash
Carry a small amount of local cash for taxis, tips and small shops, especially on arrival. Indian rules limit how much foreign currency cash you can carry, so buy from authorised dealers.
Debit and credit cards
Indian cards work abroad when international usage is enabled. They may carry foreign transaction charges and less favourable conversion rates, so use them as a backup or for large payments like hotel deposits.
LRS and TCS in simple words
Foreign travel spending by residents falls under the Liberalised Remittance Scheme (LRS). Tax Collected at Source (TCS) may apply on overseas tour packages and some foreign remittances above set limits. TCS is not an extra tax, as it can be adjusted against your income tax. Rules and rates change, so check the latest position when booking.
- Compare forex rates from two or three authorised dealers
- Choose a forex card that supports your destination currency
- Inform your bank before using Indian cards abroad
- Avoid exchanging money at airports where rates are often poorer
- Keep card helpline numbers saved separately
Paying in local currency
When a card machine abroad offers to charge you in Indian rupees, choose the local currency instead. The rupee option often uses a worse exchange rate.
Split your money across a forex card, a little cash and one backup card. Never keep everything in one wallet.
Using ATMs abroad
ATM withdrawals with a forex card are useful for local cash, but each withdrawal may carry a fee from the card issuer and the local bank. Withdraw larger amounts less often rather than many small amounts, and use ATMs inside banks or malls for safety.
Budgeting for your trip
List costs that are already prepaid in your package, such as hotels and tours, and estimate daily spending on meals, transport, shopping and tips. This helps decide how much to load on your forex card and how much cash to carry.
Unused currency after the trip
Leftover currency on a forex card can be kept for your next trip or encashed back to rupees. Small amounts of cash can be kept for a future visit or exchanged through an authorised dealer.
Safety tips
- Keep cards and cash in separate places
- Use hotel safes for passports and spare cash
- Cover the keypad when entering your PIN
- Check card statements regularly during the trip
- Save card blocking helpline numbers
Plan your trip with us
Our team helps you plan budgets for Dubai, Europe and other destinations. Read the international travel checklist.
Frequently Asked Questions
1. Is a forex card better than a credit card abroad?
A forex card usually gives a locked rate and lower charges, while credit cards are useful as a backup.
2. How much cash should I carry abroad?
Carry a small amount for arrival and small expenses, and use cards for the rest, within the limits set by Indian rules.
3. What is TCS on foreign tour packages?
Tax Collected at Source may be charged on overseas tour packages above set limits and can be adjusted when filing your income tax return.
4. Should I pay in rupees or local currency abroad?
Choose local currency, as the rupee conversion offered by card machines is often more expensive.