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Transactions Where Use Of Forex Cards Are Prohibited Abroad?

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Prepaid Forex cards are the most convenient way to travel, eliminating the need to carry cash. A host of banks like State Bank of India, HDFC Bank and companies like Thomas Cook issue these forex cards. Apart from the convenience of carrying this card, the other advantage of the card is that you lock money at current exchange rates, depending on the day you procure the card. The use of PIN for transactions also makes these cards very safe.

 

Procedure to acquire a forex card

The procedure to get a forex card is rather simple. As is the case always you first need to comply with "know your customer requirements", which essentially involves address proof, identity proof etc.

Transactions Where Use Of Forex Cards Are Prohibited Abroad?
Thereafter, you pay for the card in Indian currency. If you need $300, you can pay Rs 20,700 (assuming 1 dollar equals Rs 69). There maybe a nominal charge of Rs 100 or so for issuing the card, while some banks may offer you free as well. You can load these cards in single or in many currencies. Say for example, US Dollars or Euro or Japanese Yen etc. These cards are safe which is why they are preferred. For example, somebody would need your card as well as the PIN to misappropriate funds from your forex card.

Top-up option

You have the option of also topping-up the forex card through online and also through the phone. It is better to top up the forex card, then use your credit and debit card, because there are heavy charges of using your credit card of debit card at ATMs abroad.

 

A list of places where you cannot use your forex card abroad

There are a number of places where you cannot use your forex card, as per guidelines from the Reserve Bank of India. These include:

  • Lottery business including Government/private lottery, online lotteries, etc
  • Gambling and betting including casinos etc.
  • Call Back Services
  • Purchase of Banned Magazines

What constitutes a banned magazine and how do you define call back services, is something that the authorities can only answer. RBI regulations mandate that in the event of non-compliance with this guideline, the cardholder will be held liable and he/she may be debarred from holding the card.

GoodReturns.in

Read more about: credit card forex cards
Story first published: Thursday, January 12, 2017, 13:26 [IST]
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