Forex, Cards, and UPI Abroad: How Indians Should Carry Money When Travelling

Getting your money right before an international trip is as important as getting your visa sorted. The wrong card or an avoidable fee can cost you thousands of rupees, while carrying too much cash invites risk. Indian travellers today have more options than ever—forex cards, international debit and credit cards, UPI in select countries, and physical currency—but the choices can be confusing. This guide walks you through each option, what fees to watch for, how much cash to carry, and gives you a simple checklist to ensure you leave prepared.

Last updated: May 2025

Currency exchange bills and travel documents

Understanding Your Options: Forex Cards, Debit/Credit Cards, Cash, and UPI

Forex (Multi-Currency) Cards

A forex card is a prepaid travel card that you load with foreign currency before your trip. Issued by banks and forex service providers like HDFC Bank, ICICI Bank, Axis Bank, Thomas Cook, and BookMyForex, these cards are widely recommended for first-time travellers and those visiting one or two countries.

Advantages:

Fixed exchange rate locked at the time of loading, protecting you from rupee fluctuations.
Safer than cash; if lost, you can block and get a replacement.
Accepted wherever Visa or Mastercard is accepted.
Often come with zero or low cross-currency markup if you load the exact currency of your destination.

Disadvantages:

Loading and reload fees (typically ₹100–₹200 per transaction).
ATM withdrawal charges (₹150–₹250 per transaction abroad).
Inactivity or card issuance fees (₹200–₹500).
Unspent balance refund can attract conversion losses and fees.
Not ideal for multi-country trips with several currencies.

Best for: Travellers to one or two countries (e.g., Thailand, Singapore, Japan) who want certainty on exchange rates and don’t want to rely solely on credit cards.

International Debit and Credit Cards

Most Indian debit and credit cards work abroad, but understanding the fees is critical.

Credit Cards:

Premium travel credit cards are the best payment method for experienced travellers. Cards like HDFC Diners Club Black, Axis Magnus, American Express Platinum Travel, ICICI Amazon Pay, and SBI SimplyCLICK often waive foreign transaction fees or offer reward points that offset the markup.

Foreign currency markup: Typically 3–4% on the transaction value (includes the network fee and bank markup). Some premium cards waive this entirely or cap it at 1–2%.
Dynamic Currency Conversion (DCC): Always decline this. If a foreign merchant or ATM offers to charge you in INR, say no—the conversion rate is terrible, often 5–8% worse than your bank’s rate.
Rewards and lounge access: Many travel cards offer 2–5% back in miles or points, airport lounge access, and travel insurance.

Debit Cards:

International debit cards (with Visa/Mastercard logo) work abroad but come with higher fees:

Foreign transaction markup: 3–3.5%.
ATM withdrawal: ₹150–₹300 per transaction plus the ATM operator’s fee.
Daily withdrawal limits (typically ₹50,000–₹1,00,000 equivalent).

Best for: Credit cards are ideal for day-to-day spending (hotels, restaurants, shopping, transport). Debit cards are backup for ATM withdrawals if needed.

Cash (Foreign Currency Notes)

Physical currency is essential as a backup but should not be your primary mode.

How much to carry:

For most trips: USD 200–500 (≈₹17,000–₹42,000) or equivalent in local currency.
Short trips (3–5 days): ₹10,000–₹20,000 equivalent is sufficient.
Longer or remote destinations: ₹30,000–₹50,000 equivalent, especially if card acceptance is limited.

Where to exchange:

In India before you leave: Banks (State Bank of India, ICICI, HDFC) and authorized dealers (Thomas Cook, BookMyForex) offer competitive rates. Book online for better rates and home delivery.
At the airport: Rates are 2–5% worse; use only in emergencies.
Abroad: ATMs usually offer better rates than airport kiosks, but foreign ATM fees apply.

Tips:

Carry small denominations for taxis, tips, and small vendors.
Keep cash in multiple places (wallet, hotel safe, travel pouch).
Avoid carrying all your cash in one currency if visiting multiple countries.

UPI Abroad: Where It Works

The Unified Payments Interface (UPI) has expanded internationally, allowing Indian travellers to pay directly from their Indian bank accounts using apps like Google Pay, PhonePe, and Paytm in select countries.

Countries where UPI is accepted (as of 2025):

Singapore: Accepted at many merchants via NETS.
UAE: Select retailers and payment terminals.
Bhutan and Nepal: Widely accepted due to currency peg and proximity.
France, Mauritius, Sri Lanka, Thailand (pilot): Acceptance growing but still limited to certain merchants.

How it works:

Your UPI app detects if the merchant supports UPI international payments.
Payment is debited in INR from your account; the bank applies the exchange rate with a small markup (typically 1–2%).
No foreign transaction fee on many UPI apps, but check your bank’s policy.

Limitations:

Coverage is still limited; you cannot rely on UPI as your sole payment method.
Internet connectivity required.
Daily transaction limits (₹1,00,000 for domestic, international limits vary by bank).

Best for: Supplementary payments in supported countries like Singapore, UAE, or Mauritius, not as a primary payment method.

Fees and Markups to Avoid

Understanding fees can save you thousands.

Foreign Currency Markup (FCY Markup)

Most cards apply 3–4% on every foreign currency transaction. This includes:

Visa/Mastercard network fee (~1%).
Issuing bank markup (~2–3%).

How to minimize:

Use zero or low forex markup credit cards (HDFC Diners, Niyo Global, Fi Money).
Load exact currency on forex cards to avoid cross-currency fees.

Dynamic Currency Conversion (DCC)

When paying abroad, if the terminal asks “Pay in INR or local currency?”, always choose local currency. DCC rates are marked up 5–8% by the merchant’s processor.

ATM Withdrawal Fees

Indian banks charge ₹150–₹300 per international ATM withdrawal. The foreign ATM may add another $3–$5 (≈₹250–₹420). Use ATMs sparingly and withdraw larger amounts to minimize per-transaction fees.

Reload and Inactivity Fees on Forex Cards

Reload: ₹100–₹200 per top-up.
Inactivity: ₹100–₹200 per month if unused for 3–6 months.
Closure/refund: ₹50–₹300 when you return unspent balance.

Tip: Load only what you’ll realistically spend. Refunds are hassle-prone and can incur conversion losses.

Step-by-Step: How to Prepare Your Money Before You Travel

Step 1: Assess Your Spending Style and Destination

High card acceptance (USA, Canada, Europe, Australia): Credit card + small cash backup.
Moderate acceptance (Southeast Asia, Middle East): Forex card + credit card + moderate cash.
Low card acceptance (rural areas, small islands): More cash, ATM card backup.

Step 2: Choose Your Cards

Primary: A travel-friendly credit card with low forex markup and rewards. Apply at least 2–3 weeks before travel.
Backup: International debit card or a second credit card from a different network (Visa if primary is Mastercard, or vice versa).
Forex card (optional): For students, budget travellers, or if you want rate certainty.

Step 3: Notify Your Bank

Call or use your bank’s app/website to inform them of travel dates and destinations. This prevents fraud blocks when you transact abroad.

Step 4: Buy Foreign Currency

Book currency online from your bank or BookMyForex 3–7 days before departure for better rates and doorstep delivery.
Collect small denominations for tips and local transport.

Step 5: Set Up UPI Internationally (If Travelling to Supported Countries)

Ensure your UPI app is updated.
Check if your destination (e.g., Singapore, UAE) supports UPI and which merchants accept it.

Step 6: Organize and Secure Your Money

Carry cards and cash in separate places (wallet, money belt, hotel safe).
Photograph card numbers and customer care numbers; store securely in email or a notes app.
Download offline maps and save bank customer care numbers.

Travel wallet with cards and foreign currency

Common Mistakes Indian Travellers Make—and How to Avoid Them

Relying Solely on One Payment Method

Cards can fail, get blocked, or not be accepted. Always have at least two cards and some cash.

Not Informing the Bank

A common cause of declined transactions abroad. A two-minute call or app notification saves enormous hassle.

Accepting DCC (Dynamic Currency Conversion)

Politely decline and insist on paying in local currency.

Exchanging Money at the Airport

Rates are significantly worse. Plan ahead and exchange in the city or order online.

Overloading a Forex Card

Forex cards have hidden costs; load conservatively and top up if needed rather than facing refund hassles.

Ignoring Daily Limits

Credit cards have foreign spending limits, debit cards have ATM withdrawal caps. Know yours before you leave.

Not Keeping Emergency Contact Numbers

If your card is lost, you need to call the bank immediately. Save international customer care numbers offline.

Pre-Trip Money Checklist for Indian Travellers

Use this before every international trip:

Final Thoughts

There is no single “best” way to carry money abroad—it depends on where you’re going, how long, and how comfortable you are with cards versus cash. For most Indian travellers, a reliable travel credit card for everyday spending, a small amount of foreign currency for emergencies and tips, and a debit card or forex card as backup will cover nearly every situation. If you’re headed to Singapore, UAE, or another UPI-enabled destination, take advantage of that as a convenient supplement. The key is to diversify, understand the fees, and plan ahead so your money works as hard as you do on your trip.