How to travel abroad without worrying about cash and forex

What to carry

• Card 1: a credit card with low or zero currency markup.
• Card 2, on a different network (Visa, Mastercard or RuPay): a forex card or a zero-markup debit card, in case the first is declined or blocked.
• Your phone, with UPI International switched on if your destination accepts it.
• A little local cash for taxis, tips and small shops: enough for the first day.

Before you fly

1. Switch on international use. Under RBI rules, new cards work only in India until you turn on international and contactless use in your bank's app. Do it for every card you'll carry.
2. Set limits in the app for international use, so a stolen card can't be emptied.
3. Load your forex card with the currencies you'll spend, so you avoid cross-currency fees.
4. Turn on UPI International in your UPI app if your destination accepts it. It works only at merchants that take UPI there.
5. Save your banks' overseas helpline numbers somewhere other than your phone.

UPI abroad

Indian UPI apps can pay at merchants in a growing list of countries, including the UAE, Singapore, France, Mauritius, Sri Lanka, Nepal and Bhutan. Acceptance is at merchants that take UPI, not everywhere. Check NPCI International's current list before you go, and keep a card as backup.

Two traps at the counter

• "Pay in rupees?" When a card machine or ATM abroad offers to charge you in rupees, say no and pay in the local currency. Converting at the counter (dynamic currency conversion) usually uses a worse rate than your card's.
• Cash on a credit card. An ATM withdrawal on a credit card is a cash advance: a fee, and interest from day one. Use a forex or debit card for cash.

Customs limits on cash

Foreign currency notes you bring into India	Declare on arrival if over USD 5,000, or if all foreign exchange is over USD 10,000
Indian rupees you take out, as a resident	Up to ₹25,000

Costs and tax to plan for

• Currency markup on cards: up to about 3.5% plus 18% GST on many regular cards; nothing on zero-markup cards.
• GST when you buy currency or load a forex card: at least ₹45, and ₹180 on ₹1 lakh.
• TCS on forex cards, debit cards and money sent abroad above ₹10 lakh a year: 20% (2% for education or medical). Foreign tour packages: 2% from the first rupee. Credit card spends abroad aren't counted. You get TCS back when you file.

If a card is lost or blocked

1. Block it in the app straight away.
2. Call the bank's overseas helpline.
3. Switch to your second card. That's why you carry two.

Back home: reconvert or keep leftover forex card balance for the next trip, and claim any TCS in your income tax return.

Common questions

Two ways to sort this

Do it yourself

1. Switch on international use on each card in its app.
2. Carry two cards on different networks, plus some local cash.
3. Always pay in the local currency.
4. Claim TCS in your return when you're back.

Let an expert do it

We claim your TCS and report foreign spending correctly when you file.

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