Money abroad: forex cards, TCS, insurance and what to carry

Forex card, credit card or cash: what is the best way to carry money abroad from India?

Carry all three: a zero or low mark-up credit card for hotels, dining and shopping, a prepaid forex card for ATM cash and backup, and about 10 percent of the budget in currency notes bought in India. A standard Indian credit or debit card adds about 3.5 percent plus GST to foreign spends, while a forex card locks the rate on the day you load it. When a card machine abroad offers to bill you in rupees, decline and pay in local currency.

• Use a credit card for the hotel deposit, so the block sits on a credit line and not on your own money.
• Load a forex card in the currency you will spend; using it in another currency adds a cross-currency fee.
• Japan still expects cash at many small restaurants, temples and taxis, so carry more notes there.
• Buy notes from your bank or an authorised money changer in the city; airport counters give the worst rates.

How much foreign currency can I carry abroad from India, and what is the LRS limit?

An Indian resident can buy foreign currency notes and coins up to US$3,000 per trip for most countries; the rest goes on a forex card, a bank draft or a card payment, within the Liberalised Remittance Scheme limit of US$250,000 per person per financial year. Minors have their own US$250,000. You may also take out and bring back up to ₹25,000 in Indian notes. On return, declare foreign notes above US$5,000, or total foreign exchange above US$10,000, to Customs.

• PAN is mandatory for every transaction under the Liberalised Remittance Scheme.
• Forex bought for ₹50,000 or more cannot be paid for in cash; use a bank transfer, cheque or card.
• Unspent foreign currency must be surrendered within 180 days of return, though you may keep up to US$2,000.
• RBI says the LRS limit does not apply to an international credit card used for expenses while you are abroad.

Source: RBI FAQ, forex facilities for residents (updated 28 November 2025)Source: RBI FAQ, Liberalised Remittance Scheme

Is TCS charged on forex, cards and overseas tour packages in 2026-27?

TCS in 2026-27 is a flat 2 percent on an overseas tour package from the first rupee. Other travel money sent under LRS, such as forex card loads, currency notes and wires to a foreign hotel, carries none until it crosses ₹10 lakh in the financial year, then 20 percent. RBI keeps international credit card spends abroad outside LRS, so they carry no TCS. TCS is a credit against your income tax, not a cost. This is general information, not tax advice.

• Until 31 March 2026 a tour package carried 5 percent up to ₹10 lakh and 20 percent above it.
• On a ₹20 lakh package the TCS is now ₹40,000, where it was ₹2.5 lakh before.
• The credit card position rests on RBI's forex FAQ, updated 28 November 2025; confirm it with your card issuer before a large spend.

Read the full guide Source: Income Tax Department, FAQs on Budget 2026 (TCS rates)Source: RBI FAQ, forex facilities for residents (updated 28 November 2025)

Should I pay a travel company in India by card or bank transfer, and what paperwork should I expect?

Pay by bank transfer (NEFT, RTGS or IMPS) into the company's current account in its registered name: it costs nothing and leaves a clean trail. Card payments often carry a convenience fee of 1.5 to 3 percent, or ₹22,500 to ₹45,000 on a ₹15 lakh trip. Either way the 2 percent TCS on an overseas package is collected against your PAN; expect a GST invoice showing it, then a TCS certificate. Never pay into a personal account. This is general information, not tax advice.

• Give the PAN of the person who is actually paying; the TCS credit lands in that person's tax account.
• The invoice should show the company's GSTIN, your name, the journey and the TCS as a separate line.
• Check that the TCS appears in your Annual Information Statement on the income tax portal before you file.
• If you wire money abroad yourself, the bank asks for Form A2 and your PAN, and it counts towards your LRS limit.

Read the full guide Source: Income Tax Department, FAQs on Budget 2026 (TCS rates)Source: RBI FAQ, Liberalised Remittance Scheme

In which countries does UPI work for Indian travellers abroad?

UPI works at participating merchants in a short list of countries: NPCI International names Singapore, France, Mauritius, Sri Lanka, Bhutan and Cambodia among those where acceptance is live as of November 2026. It is merchant by merchant, not nationwide, so treat it as a convenience and carry a card everywhere. Before you fly, activate international payments inside a UPI app that supports them; each payment is then debited in rupees from your Indian bank account at your bank's exchange rate.

• Activation is done inside the app, and NPCI says it must be switched on before UPI will work abroad.
• Look for the UPI mark or ask at the till; a QR code alone does not mean UPI is accepted.
• For any country not on NPCI's list, plan on cards and a little cash.

Source: NPCI International, UPI acceptance abroad

How much should we tip abroad: the USA, Europe, Japan, safaris and the Maldives?

Tip 18 to 20 percent in restaurants in the USA and Canada, round up or leave 5 to 10 percent in Europe where service is not already on the bill, and do not tip in Japan, where it is not the custom. On safari, plan about US$15 to US$25 per guest per day (about ₹1,400 to ₹2,350) for the guide and US$10 to US$15 for the camp staff box. Maldives resorts already add a 10 percent service charge.

• Private guides and drivers in Europe are usually tipped about €20 to €40 a day from the party, not per person.
• Carry small US dollar and euro notes from India; breaking a large note for a tip is awkward everywhere.
• In the Maldives anything beyond the service charge, such as a tip for your villa host, is your choice.

What does international travel insurance cost from India, and what must it cover?

As an indicative range, international travel insurance from India costs about ₹1,000 to ₹4,000 per adult under 60 for a two-week trip. For a Schengen visa it is compulsory: at least €30,000 (about ₹31.5 lakh) of cover for emergency medical care, hospitalisation and repatriation, valid in every Schengen state for the whole stay. That is the visa floor, not enough for a serious claim. Buy US$250,000 or more of medical cover with evacuation, and add trip cancellation before paying non-refundable deposits.

• The premium range is an indicative estimate, not a tariff; it rises with age, cover and travel to the USA or Canada, so get a dated quote.
• Outside Schengen, insurance is usually not an entry condition, but most expedition and Antarctica operators insist on evacuation cover.
• Standard policies commonly exclude war and a refused visa, so read the exclusions before you rely on them.
• A 24-hour assistance number and cashless hospital admission abroad matter more than a lower premium.

Read the full guide Source: German Missions in India, travel medical insurance for Schengen visasSource: European Commission, applying for a Schengen visa

Can senior citizens with pre-existing conditions get travel insurance from India?

Yes: Indian insurers sell travel cover well past 70, and some plans have no upper age limit, but the premium rises steeply with age and pre-existing conditions are the weak point. Most policies either exclude pre-existing disease or pay only for a life-threatening emergency up to a sub-limit, so declare every condition and medicine on the proposal form and read that clause first. For parents, choose a plan without sub-limits on room rent and procedures, with US$250,000 or more of medical cover and evacuation.

• The insurer list accepted for Schengen visas shows entry ages capped at 60 or 70 on many standard plans and uncapped on others.
• Several insurers run a separate senior plan above 70, sometimes with a medical report before issue.
• An undeclared condition can void a claim, even one unrelated to the illness abroad.
• Carry prescriptions, a doctor's summary and the policy's assistance number in hand luggage.

Read the full guide Source: German Missions in India, accepted travel medical insurers and age limits

What is the customs duty-free allowance when returning to India, including gold and alcohol?

An Indian resident returning by air may bring in goods worth up to ₹75,000 free of duty under the Baggage Rules, 2026 (CBIC guide, February 2026). Alcohol and tobacco sit outside it: 2 litres and 100 cigarettes. Gold jewellery is duty free only after more than a year abroad: 40 grams for a woman, 20 grams for others. Gold bars and coins get no allowance. Declare anything above the limits at the red channel. This is general information, not tax advice.

• One laptop is duty free for a passenger above 18, on top of the general allowance.
• A watch, handbag or phone bought abroad above the allowance is dutiable; keep the invoice and declare it.
• Passengers arriving by land border get no general duty-free allowance.
• Foreign notes above US$5,000, or total foreign exchange above US$10,000, need a Currency Declaration Form on arrival.

Source: CBIC, Guide for International Travellers (updated February 2026)Source: PIB, Government notifies Baggage Rules, 2026 (2 February 2026)