Forex Card: How to Buy Forex for Traveling Abroad

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Traveling abroad requires the need to obtain the currency of that country. Foreign currency can only be obtained from authorized dealers, including banks. The RBI has set separate limits for obtaining foreign currency for different purposes such as travel, study abroad, medical travel, among others.

How to get forex

Customers can obtain foreign currency by visiting a bank branch, which is authorized to issue foreign currency. Many banks also offer the option of buying currencies online.

Take foreign currency

The RBI has set a cap of $ 3,000 per visit for the purchase of foreign currency in the form of banknotes and coins. One can buy the equivalent of up to $ 10,000 in the form of a forex card. The overall limit for an individual, under the Liberalized Resident Individual Payments Program, is $ 250,000 per fiscal year.

Application

The bank may prescribe an exchange request form. The RBI has prescribed the A2 form and LRS declaration which must be completed and submitted at the time of application.

Documents to provide :

  • Self-certified copies of PAN, passport and visa
  • If the visa is on arrival, then copy of the plane ticket

Payment

Currency payments can be made in cash up to a limit of Rs 50,000 or by crossed check or sight draft. If the applicant has an account with the bank, a debit instruction from the account may be included in the application form itself.

Point to note

  • The online application provided by banks allows individuals to apply for forex by submitting their Aadhaar and OTP details.
  • In the event of an online request, the customer must go to an agency to withdraw the currency. However, a forex card is shipped to the applicant’s address.

(The content on this page is courtesy of the Center for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava, and Labdhi Mehta.)

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