What are travel cards?
Travel cards offer a secure and convenient way for international travelers to manage foreign currency, eliminating the need for large amounts of cash and high transaction fees. Issued by banks and forex dealers, these prepaid cards can be loaded with multiple currencies and used like regular debit cards. Read on to know more
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Who issues travel cards?
How to get it
Usage convenience
Points to note
It is important to be aware of ATM withdrawal charges, balance enquiry fees, and inactivity penalties that may apply.
Retain all receipts and monitor usage to stay within prescribed LRS limits and for future reference in tax disclosures.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com .)
For people heading overseas, travel cards offer a secure and convenient way to manage foreign currency . These prepaid cards, also known as forex cards , are widely accepted across the globe and help eliminate the hassle of carrying large amounts of cash or incurring high foreign transaction fees on debit or credit cards. Travel cards are preloaded with foreign currency and can be used like a regular debit card for making purchases.Travel cards are issued by banks and authorised forex dealers. They are available in single- or multicurrency formats. Multi-currency cards are especially useful for travellers visiting several countries during a single trip.One can apply for a travel card online or at designated bank branches and forex outlets. The applicant must submit a valid passport, visa, air ticket, and PAN card. RBI guidelines allow travellers to load up to $2,50,000 per financial year under the Liberalised Remittance Scheme (LRS). The card is usually issued instantly and can be activated with a secure PIN. Most banks allow online top-ups, making it easy to reload the card in case of extended travel.The currency is loaded at a fixed exchange rate, protecting the traveller from future currency fluctuations . If lost, the card can be blocked instantly and replaced. Many banks also provide insurance cover for lost or stolen cards. Transactions can be easily monitored through mobile apps or online banking.
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