How Much Currency Should You Carry on Your First International Trip?

In the post-pandemic scenario, when life is getting back to normal, and people are resuming their long-awaited trip plans, it is essential to strategize about the expenses to be incurred. Prior to packing bags, understanding the financial baggage is necessary. This reduces the probability of incurring any unprecedented financial crisis. This crisis could be avoided by doing systematic planning with regard to the destination to be visited, the budget and other matters related to the travel. This planning method is essential especially if this is your first trip abroad. The chances of facing any crisis are high outside one’s own country. Among the list of crises, the financial crisis is something which could be avoided by taking imperative measures. One such imperative measure is to own and carry the best prepaid Forex card wherever you travel. It is the easiest and most effective medium for the transaction of currency in a foreign territory. Check out this guide for taking Forex abroad to know more about the specifications and limitations that come with overseas remittance and travel.

Rules and Regulations when Carrying Forex Abroad

Even though carrying the best prepaid Forex card with you on your first trip abroad can solve myriad problems in and of itself, it is crucial to note some of the core RBI forex rules and regulations that you need to follow when doing so. In this guide for taking Forex abroad, we present you with some specific RBI forex rules and regulations that have been placed for those who are preparing for overseas travel.
Limits on Liquid Cash: As per the RBI forex rules, individual travellers who are planning to carry cash or coins in a foreign currency from India on their overseas trip should adhere to a limit of USD 3000 per visit. The remaining amount of foreign currency can be carried through other methods, such as in the form of banker’s drafts, travellers’ cheques, or of course, Forex cards. Make sure you register for the best prepaid Forex card on the Thomas Cook website today so that you can comply with this crucial regulation.
Limits on Indian currency being brought in: If, for some reason, after a temporary visit, you are planning to come back to India with rupees in your possession in the form of bank notes, note that the acceptable limit for the same is INR 25,000. The denominations of the same should not exceed INR 100.
Limits of Forex brought back to India: There are no limits in terms of Forex brought back by travellers when entering India. However, according to the foreign exchange rules India, if the equivalent of more than USD 10,000 in currency notes, cheques and travel cards is brought in, the amount needs to be declared to the Customs Authorities upon arrival at the airport via the RBI Currency Declaration Form (CDF). You can get the RBI currency declaration form at the customs counter or from the airport authorities. We suggest that you use the Forex card from Thomas Cook to carry only as much as you need, specifically due to the fact that you can reload it whenever you want to, once purchased.
Waiting Period: The waiting period is 180 days prior to making the foreign trip; that is, one has to buy foreign currency 180 days prior to travelling abroad. The maximum limit of liquid cash exchange is INR 50,000. As per RBI forex rules, if the exchange is beyond INR 50,000, then the rest of the amount will be transacted and possessed through banker’s cheque, pay order, demand draft, debit card, credit card or forex card.

Forex Exchange Limits for Individuals

The answer to how much Forex an individual should carry depends on the budget of the trip planned. Without systematic planning, it would be difficult to assess the budget. Deciding the budget for the trip also depends on the exchange rates existing in the foreign land. For example, a person travelling from India to Vietnam, the Indian currency values more in Vietnam (1 INR=297.53 Vietnamese Dong). While travelling from India to the US, the dollar costs more than the Indian currency (1 INR= 0.013 USD). Hence, the amount to be carried varies from destination to destination. Also, there are specific regulations which specify the foreign exchange limits for individuals, both when it is carried on person and when one is remitting money abroad via digital means. The Liberalised Remittance Scheme promoted by the Reserve Bank of India has given an Indian resident travelling abroad to send up to $25,000, i.e around INR 1.77 crore. Only USD 3,000 will be allowed to be carried as liquid cash on person, while the rest of the amount needs to be carried in the form of paperless currency, i.e, using a Forex card or cheque or any other form of currency carrier. The laws differ from country to country, thus, it is essential to thoroughly check the laws prevailing in that particular destination, as well as the foreign exchange rules India, to avoid any legal crisis.

How to Decide the Right Mix of Cash and Forex Cards?

Anytime you plan a foreign trip, you need to ensure you have the right currency on hand to be used for purchases there. In this case, some will recommend carrying cash while others will tell you to lean more towards forex cards, however, the right way to go about this is to carry both.

Now for the right mix, what most people generally do is to carry foreign currency for the international trip is a mix of 90:10, where 90% is kept on a forex card and 10% is kept in cash. This 10% is only for handling small purchases like public transport tickets, quick snacks, taxi fares, etc. However, the most ideal way to go about this is to keep a 70:30 ratio. This depends on factors like the country/countries you are visiting and your spending habits. While forex cards work almost everywhere, some countries or specific locations may have certain restrictions, in which case cash becomes the undisputed king. While at it, make sure to keep a credit card as a backup in the event you have exhausted your cash or prepaid multi-currency forex card. Also, if you are wondering “how much INR can I carry from India to USA”, the answer is up to INR 25,000.

Why are Thomas Cook Forex cards preferred?

Thomas Cook is the only AD-II (authorized dealer category II) entity recognized by RBI, which means we are the one-stop solution when it comes to getting the best prepaid Forex Card. It is a smart way to store one’s money, especially if you are a travel enthusiast. The multi-currency Forex card provided by Thomas Cook has 5 years validity period and the single currency card has 3 years validity. The Forex cards provided by Thomas Cook are smart, secure, convenient and customer-friendly. Additionally, Thomas Cook offers forex card for students at attractive discounts. So the next time you are planning to carry Forex abroad, think smart and invest in a Forex card from Thomas Cook so that you do not have to deal with the myriad rules and regulations around carrying foreign currency.

Best Practices for Carrying and Using Forex Safely

Keeping your expenses in check while on a foreign trip is essential. Here are some tips on safely carrying and using forex on a vacation/foreign trip;

1. Keep the majority of the forex on prepaid forex cards as they are convenient to use, offer secure transactions and can be blocked immediately in case of theft/loss of the card.
2. Use forex cards for major expenses/transactions such as settling hotel bills, fine dining, major shopping, etc.
3. Limit the use of foreign exchange in local currency notes, i.e., cash, only for small purchases and at places where only cash is accepted.
4. Keep your forex card and foreign currency cash in a safe location, such as an anti-theft bag. When stepping out of your hotel, try carrying mainly forex cards and a minimum amount in cash.
5. To save up on Dynamic Currency Conversion (DCC), opt for “pay in local currency” at payment counters and “accept without currency conversion” when withdrawing cash from an ATM via forex cards.

Frequently Asked Questions (FAQs):

How much foreign currency can I carry while traveling abroad from India?

If you are wondering “how much dollars can I carry from India?” or any other foreign currency, note that as an Indian resident travelling abroad from India, you are allowed to carry an unlimited amount of foreign currency as long as it is purchased from a money exchange/bank that is approved by the RBI. However, the answer to “how much dollars can I carry from India in cash?” is up to USD 3000.

What are the benefits of using a Forex card over cash or international debit/credit cards?

Some of the main benefits of Forex cards over international debit/credit cards are that they are easier to use, involve minimal transaction fees, work globally, can transact in multiple currencies, help you avail of locked-in exchange rates, etc.

Are there any exceptions to the foreign currency carrying limits for specific countries?

There are a few country-wise limitations as per the foreign exchange rules India. For example, travellers going to Libya & Iraq can only draw forex in cash and coins not exceeding USD 5000 per visit. Similarly, there are a few restrictions in the case of visiting Iran, the Russian Federation, etc.