The impact of demonetization of old INR 1000 and INR 500 can be felt even abroad. The operations of foreign exchange post demonetisation have not been very user-friendly. Shop owners, cab drivers and restaurants who previously accepted the Indian currency do not want it. And it is not the old Indian currency that we are talking about, but the new INR 2,000 and INR 500 bills. Even local vendors who deal in foreign exchange are not accepting the Indian currency.
And then there is a limit on the foreign currency that can be carried outside India in cash. But that doesn’t mean that one stops travelling abroad. Does it?
With the innumerable ways to carry foreign currency, travelling abroad may not actually be difficult.
Here are the smart ways to manage foreign exchange.
- Prepaid Forex Travel Cards
Foreign exchange company in North India and banks provide prepaid forex cards that act very much like the conventional ATM cards. The forex cards provide better exchange rates as compared to cash.
Money exchange can be done by directly buying foreign exchange currency notes and coins with the Indian currency. Banks, local vendors, or other private foreign exchange counters provide the facility for the same.
- International Activation on Debit and Credit Cards
Your own debit or credit cards may be activated to support foreign ATM withdrawal. All you need is to call your bank’s customer care and they will guide you accordingly.
- Traveller’s Cheque
Traveller’s cheque used to be a popular way to carry money abroad a long time back. Due to the strict approach to the use of money, it is getting little antiquated and hence is not used in many situations. However, they are quite immune to the possibility of theft.
Prepaid Forex Travel Cards vs Cash
Prepaid travel cards provide safety in case of theft or loss if lost can be blocked and the funds can be transferred to the replacement card. Forex cards also give travellers an option to load multiple currencies.
The best strategy is to carry 70% of total expected expense in forex card and the rest in cash. Also, research about the charges the card carries before buying.
Prepaid Forex Travel Cards vs Debit and Credit Cards
When you withdraw money using debit/credit cards from an ATM abroad the fee associated is higher than that with prepaid forex cards. And also, no extra amount is charged on swiping the prepaid travel card abroad for shopping or other transactions. The forex cards also have fixed exchange rates i.e. the rate is locked in advance if the currency value goes up or down it does not bother the traveller.
The best strategy is doing the majority of your transactions abroad via forex cards and carry credit/debit card along as backup. But do not forget to keep some cash-in-hand for shops with no card facility.
Many currency exchange companies in Chandigarh offer multi-currency forex prepaid cards. For people who travel frequently, these cards are very beneficial and are available at competitive prices.
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