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Travellers Cheques Vs Forex Card

Foreign exchange and TC

Ans. Dance troupes, artistes, etc., who wish to undertake cultural tours abroad, should obtain prior approval from the Ministry of Human Resources Development, Government of India, New Delhi.

Ans. On return from a foreign trip travellers are required to surrender unspent foreign exchange held in the form of currency notes within 90 days and travellers’ cheques within 180 days of return. However, they are free to retain foreign exchange upto US$2,000, in form of foreign currency notes or TCs for future use.

Ans. Permissible foreign exchange can be drawn 60 days in advance. In case it is not possible to use the foreign exchange within the period of 60 days, it should be immediately surrendered to an authorized person. However, residents returning from their trip are free to retain foreign exchange up to USD 2,000, in the form of foreign currency notes or TCs for future use or credit to their Resident Foreign Currency (Domestic) [RFC (Domestic)] Accounts.

Residents are permitted to hold foreign currency up to US$2,000 or its equivalent provided the foreign exchange was acquired for either of the following reasons

  • acquired while on a visit to any place outside India by way of payment for services not arising from any business in or anything done in India
  • acquired from any person not resident in India and who is on a visit to India, as honorarium or gift or for services rendered or in settlement of any lawful obligation
  • acquired by way of honorarium or gift while on a visit to any place outside India
  • acquired from an authorised person for travel abroad and represents the unspent amount thereof

Ans. There is no restriction on residents holding foreign coins.

Ans. An NRI coming into India from abroad can bring with him foreign exchange without any limit provided if foreign currency notes, travellers cheques, Prepaid Forex Card exceed US$ 10,000/- or its equivalent and/or the value of foreign currency exceeds US$ 5,000/- or its equivalent, it should be declared to the Customs Authorities at the Airport in the Currency Declaration Form (CDF), on arrival in India.

Travellers Cheques Vs Forex Card

Key features/benefits of a forex card are :

  • It can be used at all Visa/Master Merchant establishments worldwide
  • It can be used for online purchases/transactions E.g. pay bills, buy air tickets, etc.
  • It can be encashed anytime and in any ATM
  • It is reloadable even when the cardholder is abroad
  • Hassle free loading of card – exchange rate based on Inter Bank Rates
  • It gives protection against Exchange rate fluctuations – foreign currency is fixed when the card is loaded and not when it is used (unlike an International Credit Card)
  • The primary card can be hotlisted incase of loss and balance can be transferred to the issued add on card
  • Residual cash can be easily redeemed after the journey

Travellers Cheques

  1. Accepted only at select locations
  2. The entire amount has to be encashed each time you shop.
  3. Cumbersome replacement process, if lost.
  4. Signature based security and Set Value on each cheque
  5. Balance encashment only at Money Changers and select Merchant establishments


Forex Card

  1. Accepted worldwide at all Visa / MasterCard ATMs and Merchant establishments.
  2. Gives 24*7 access to cash and can be utilized for the exact value of transaction.
  3. Lost/stolen card can be replaced and the balance can be transferred to new Card.
  4. Enhanced security through 4-digit secure PIN to authorize all ATM transactions
  5. Unlimited transactions possible (subject to the balance)