Guide to how much currency you should carry on your first trip abroad
In the post pandemic scenario, when life is getting back to normal, and people 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 a 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, financial crisis is something which could be avoided by taking imperative measures. One such imperative measure is to own and carry Forex card to where ever you travel. It is the easiest and most effective medium for 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 a 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 rules and regulations that you need to follow when doing so. In this guide for taking Forex abroad, we present you with some specific regulations that the RBI has laid out for those who are preparing for overseas travel.
Limits on Liquid Cash: 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 a 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, 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, 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 Currency Declaration Form (CDF). 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. If the exchange is beyond INR 50,000 then rest of the amount will 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, dollar costs more than 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 carries 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 to avoid any legal crisis.
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 Forex Cards. 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. 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.
