Are you an Indian planning a vacation trip abroad? Do you want to send your son/daughter abroad for further education? Do you need to travel out of India for a business trip? If yes, then it’s important to know everything about foreign currency exchange to ensure smooth financial transactions during your stay in a foreign country.
The LRS Scheme:
The Reserve Bank of India (RBI), plays a very important role when it comes to regulating foreign exchange guidelines.
Your drawal of foreign exchange for travel or for sending money overseas for various purposes be it education, tour etc. is governed by the Liberalised Remittance Scheme (LRS) of RBI. Under LRS, resident Indians are allowed to freely remit up to $250,000 per financial year for any permissible transactions through banking channels.
Please remember that these limits apply when you travel to almost all countries in the world, barring a few, including Nepal, Bhutan, Libya, Iraq, Iran and the Russian Federation, among others.
Know more about LRS guidelines.
What is the eligibility criteria for carrying foreign exchange while travelling abroad?
While planning your trip, know how much currency or cash you can carry. There are limits set by the RBI which need to be adhered. A traveller should ensure that his drawal is within the LRS limit for the financial year.
Within the LRS limit, a traveller can carry maximum cash of $3000 or equivalent in any currency in a single trip. Rest should be in the form of prepaid cards.
You can buy foreign exchange 180 days before your travel date from an authorized person or dealer.
How much foreign exchange can I retain with me after I return from my trip?
On return from a foreign trip, travellers are required to surrender unspent foreign exchange held in the form of currency notes and travellers cheques within 180 days of return. However, they are free to retain foreign exchange up to USD 2,000, in the form of foreign currency notes or TCs for future use
Don’t forget to surrender your forex amount after returning from your foreign trip as keeping foreign currency above $2000 is a violation of the FEMA Act.
What is the Best way to carry foreign exchange?
Foreign exchange can be carried in the form of currency and forex cards. For international traveller it is always advisable to carry a combination of forex card and currency. There are limits on the value of currency you can carry and also having high value of currency is risky. Forex Cards present a much better option in terms of safety, security and acceptance and has a host of features which ensures you will have a hassle free travel experience. One of the key features in a forex card is its reloadability which ensures that you can top up your card remotely so that you are not out of funds in the midst of the trip.
WSFx Smart Currency Card – Industry first forex and INR Prepaid Card:
For your ease and convenience while travelling, WSFx has launched a Smart Solution for you – ‘WSFx Smart Currency Card’. It’s an industry first forex card specially made to offer an experience like never before while travelling.
Let’s see how the card is beneficial to you.
- The WSFx Smart Currency Card is an app enabled multicurrency forex and INR prepaid card.
- The card comes with 10 key international currencies namely USD, GBP, EUR, CAD, AUD, SGD, AED, JPY, SAR, THB along with INR.
- The card has a companion app – WSFx Smart Currency App which helps manage the card on the go.
- The traveller can easily reload the card through the app, make secured payments, view transaction history, transfer from one wallet to another just on a click.
- The card can be used by leisure travellers, Corporate travellers and students who travel abroad for educational purposes.
The WSFx Smart Currency Card is your ultimate travel companion. Travel Smart…Travel Light.
To know more about the WSFx Smart Currency Card, click here
Secure your trip with Travel Insurance:
Your safety and security in a foreign land which is unknown to you is of utmost importance. Extensive preparation needs to be done for your overseas travel to be safe and secured. This is why having travel insurance becomes an essential part of travelling.
Buying a Travel Insurance not only acts as a safety net against the risk of incurring unforeseen medical expenses but also safeguards against other travel related emergencies like losing a passport or checked-in baggage, or damage of baggage etc.
Why incur unforeseen expenses when you can cover yourself at low cost? Make it a priority before you leave for your vacation.
For any enquiry related to Travel Insurance, click here
A few budget places you can plan a visit:
- The United Arab Emirates (Dubai)
- Hong Kong
If you are planning a foreign trip any time soon, start preparing now.
For any forex related enquiry kindly submit your details here