Best Practices for Carrying Foreign Currency When Traveling

According to the report 'Travel Trends 2024: Breaking Boundaries' put together by the Mastercard Economics Institute, there has been a rise of Indian passenger arrivals by 53% in Japan and 59% in the US compared to 2019 (Forbes, 2024). If you too are planning to visit abroad, efficient management of foreign currency is the decisive factor for a hassle-free journey. 

In this blog, we will discuss the best ways of carrying foreign currency while traveling and what the best way to carry foreign currency is, along with the stipulated limits for the outward carrying policy of foreign currency in India. This blog is a must-read for the essential tips on how to carry foreign money so that your trip is safe and hassle-free or convenient; following the guidelines, you will enjoy your trip without any problems related to money management.

Before we delve into deep stuff, it's important to plan how you will manage your money before you leave for abroad. You should research the destination's name of the currency, current exchange rates, and who the most reliable Forex providers are that can help you get the best value for money and avoid unnecessary fees.

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Where to exchange currency in advance?

Exchanging money before you travel is one of the best ways to carry foreign currency. Supreme Forex is RBI authorized II Dealer in India which provides competitive rates, plus convenience. This way, you will avoid high fees charged at airport kiosks; besides, you might get better rates than what you would get abroad. To know more, keep reading. 

Advantages of Prior Exchange

1. Best Exchange Rates: You get the best rates if you shop around and need not worry about currency exchange on arrival in the foreign country.
2. No long queues: In most cases, such airport and hotel exchange services are long-winding, cutting into your time.
3. Safety: With local money in your wallet, you will not need to go scouting for a money-changing service the moment you arrive at a city, thus saving you from stress and many other possible problems.
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Use a Forex Card

Forex cards are prepaid cards designed specifically for international travel. They are a safe and convenient way to carry money abroad. Here's why they could be the best way to carry foreign currency while traveling:

Advantages of Forex Cards

1. Multiple Currencies: If you happen to go to various countries, with a single card, you can load multiple currencies.
2. Fixed Exchange Rates: Get to know the exchange rate when you load the card and be protected from currency volatility.
3. Wide Acceptance: Forex cards are accepted at nearly all international ATMs, shops, and restaurants.
4. Security: They can be blocked in case of loss or theft.

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Use Traveler's Cheques

While used very less now, traveler's cheques are a fairly safe way to carry money. They come with pre-printed cheques in denominations of various values that can be used or exchanged for cash at an exchange rate. These however are not as convenient as cards or cash.

• Though they can be replaced, in the event of loss or theft, not everywhere accepts traveler's cheques, and it might be a hustle to find a place to cash it.
• Traveler Cheques have fixed Value. This implies that you know how much money you have because the amount is fixed. However, this advantage is burdened by the hiked fees for buying and cashing traveler's cheques.
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Bring Some Cash

Although cards are very convenient, one should always have a little bit of cash on their person in the case of an emergency or when visiting a business that may not accept card transactions. This money should always be expertly stored in person, and the amount should always be minimal to reduce the chance of losing it.

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How Much Cash Must One Carry?

The amount of cash to be carried will depend on the destination and on how long you plan on staying. In general, atleast $200-300 of local currency is helpful to get you through all of your immediate expenses, from transportation to tips and other small purchases.

As per RBI, travelers visiting all countries except (a) and (b) below are eligible to avail foreign currency notes/ coins up to USD 3000 per visit. The balance is to be maintained in Store value cards, Traveller's Cheque, or Banker's Draft. Exceptions to this are:

a) Travelers proceeding to Iraq and Libya who can draw foreign exchange in the form of foreign currency notes and coins not exceeding USD 5000 or its equivalent per visit;

b) Travelers proceeding to Islamic Republic of Iran, Russian Federation and other Republics of the Commonwealth of Independent States who can draw entire foreign exchange up-to USD 250,000 in the form of foreign currency notes or coins.

There are additional guidelines specific to countries, and travelers can refer to the RBI website for the same.

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What to do with retained FOREX after travel?

On return from foreign travel, travelers are required to surrender unspent foreign exchange held in the form of currency notes and travelers cheques within 180 days of return. They are, however, free to retain foreign exchange up to USD 2,000 in the form of foreign currency notes or TCs for future use or credit to their Resident Foreign Currency (Domestic) RFC (Domestic) Accounts.

As per RBI, the residents can hold foreign coins without any limit.

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The Limits on Carrying Foreign Currency Outside India

You should be aware of the limits of carrying foreign currency while going out of India so as not to run foul of the law and to ensure hassle-free journeys. As prescribed by the Reserve Bank of India, you are supposed to observe the following limits and guidelines for carrying foreign currency:

1. Cash: Up to USD 3,000 can be taken per person in cash. Here are the countries where INR is accepted. 

2. Forex Cards and Traveler's Cheques: A total of USD 10,000 can be carried in a combination of forex cards and traveler's cheques with some cash.

Declaration Requirements

A person can bring in any amount while coming to India, however in case a person is carrying an amount in currency notes, travelers cheque or banknotes, it must be declared to customs authority at the airport if case you are carrying over USD 5,000 in cash or USD 10,000 or more in cash, forex cards, and traveler's cheques, then you must declare the same to customs at the airport. The same can be done through Currency Declaration Form (CDF) at Customs Authorities in Airports (RBI, 2023).

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Purchase of foreign exchange by Cash

Foreign exchange for travel abroad can be purchased from RBI authorized dealers against rupee payment in cash below Rs.50,000/-. However, if the sale of foreign exchange is for the amount equivalent to Rs 50,000/- and above, the entire payment should be made by way of banking channels only.

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Secure Your Money

No matter how you carry your money, the most important consideration is that your money should be safe. Here are some measures you can take to protect your money:

1. Split Your Money: While traveling, divide your money and credit cards over a couple of bags or pockets. This kind of carefulness will go a long way in ensuring that you don't lose your money in case one bag is misplaced or stolen. You will minimize the chances of being stranded without funds by distributing your money this way.

2. Money Belt: Provide yourself with a money belt or a hidden pouch for your body to carry your money in. Such accessories will allow you to move around freely and without fears that anything may happen to your values. Wearing it under your clothes adds an extra layer of protection.

3. Be Careful: Do not flash large sums of money in public. Showing high amounts of cash might just catch unwanted attention and turn you into a perfect target for thieves. Always handle money discreetly to keep yourself safe.

4. Call Your Bank: Let your bank know where you're going and when you leave. This will prevent them from putting a freeze on your card when they see unusual activity from a foreign location. If you call your bank ahead of time, you will not have any problem getting access to your money when traveling.

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Secure your Transactions: With Supreme Forex

1. Best Competitive Exchange Rates: Supreme Forex gives you one of the best exchange rates in the market, ensuring you get maximum value for your money.
2. Currencies Available: We have an exhaustive range of foreign currencies to cater to various travel and business needs across countries.
3. Easy Access: We facilitate easy currency exchange through an easy-to-use online interface and several branches.
4. Fast Service: We take pride in our fast and efficient service and ensure that all transactions are completed as quickly as possible—no need to wait for hours.
5. Secure Transaction: Advanced security measures help protect your financial information and ensure safe transactions.
6. Customer Support: Professional and reliable service for your inquiries or problems through our customers' support.
7. Transparency: Because of the transparency in pricing and no hidden fees, you will always know exactly what you pay for.
8. Expert Guidance: We provide expert advice and guide customers on currency exchange so that they may take an informed decision.
9. Convenience: Home delivery of currency and online transactions are other facilities for enhancing customer convenience.

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Conclusion

There are best practices you can follow to keep the stress out of your journey. Plan ahead, use a mix of cash and Forex card, and follow general precautionary guidelines when carrying money. Carrying foreign currency travel requires balance: convenience, security, and little cost. Choose reliable forex providers that can give you the best rates and services. Here are 6 things you must know before you get your currency exchange.

Planning a trip? Let Supreme Forex give you the best rates and services. Secure your travel money in our hassle-free foreign card and cash exchange options. Visit us today!

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