Currency & Foreign Exchange Guide for Indian International Travellers

How to Manage Money Abroad: A Guide for Indian Travellers

Foreign exchange is one of the most underplanned aspects of international group tours. Getting this wrong can cost you thousands of rupees in avoidable fees, poor exchange rates, and unfavourable currency conversions. Getting it right means more money for experiences, shopping, and enjoying your trip to the fullest. Here's everything you need to know.

Forex Cards — The Smart Traveller's Choice

A prepaid forex card is the most convenient and cost-effective way to carry money internationally. Load the card in India at your travel exchange rate, and use it like a debit card abroad without incurring the 3.5–5% markup that regular debit/credit cards charge on foreign transactions. Popular options: Niyo Global, BookMyForex Multicurrency Card, HDFC Regalia Forex, and Thomas Cook Forex Card. Load slightly more than you need to cover emergencies.

How Much Cash Should You Carry?

For most Southeast Asia group tours, carry USD 200–400 in cash for incidentals (tips, markets, small purchases), and handle larger payments via forex card. In Vietnam and Cambodia, US dollars are widely accepted. In Thailand, exchange USD to Thai Baht on arrival at Suvarnabhumi money changers (better rates than airport exchange counters). Always have local currency for transport and street food.

Best Exchange Rates: Where to Exchange in India

Exchange rates at authorised money changers like BookMyForex, Thomas Cook, and Centrum (formerly Weizmann) are consistently better than bank branch rates. Avoid exchanging at airports (worst rates) or small unauthorised kiosks. Online platforms like BookMyForex allow rate-locking — lock your rate today for delivery tomorrow, protecting yourself from rate fluctuations.

Credit Cards Abroad: Know the Fees

Most Indian credit cards charge 2–3.5% foreign transaction fees plus GST on each overseas transaction. For a ₹1,00,000 trip, this adds ₹2,500–3,500 in fees. Premium cards like Axis Magnus, HDFC Infinia, ICICI Emeralde, and Amex Plat Travel offer zero or reduced forex markup and additional travel benefits. Always inform your bank before travel to avoid card blocks on overseas transactions.

Digital Payment Apps Abroad

UPI works in several international destinations including Singapore (PayNow), Bhutan, Nepal, UAE, and France. For Southeast Asia, Niyo Global app-based card works across 150+ countries with competitive exchange rates. Wise (formerly TransferWise) offers multi-currency accounts with real mid-market exchange rates and is excellent for European travel.

LRS Regulations — RBI Rules for Taking Money Abroad

Under RBI's Liberalised Remittance Scheme (LRS), Indian residents can remit up to USD 2,50,000 per financial year for personal travel. TCS (Tax Collected at Source) of 20% applies on remittances above ₹7 lakh per financial year for travel purposes (this is credited back when you file your ITR). For group tour packages where the operator handles forex, TCS rules may apply differently — consult your CA.