Outlook Money
Before buying foreign currency, travellers must submit certain documents. These transactions are regulated by RBI under FEMA and the Liberalised Remittance Scheme (LRS).
A valid passport is the most important document for buying foreign currency. Many banks also require a self-attested copy.
Depending on the destination, travellers may need to provide a visa, flight tickets, hotel bookings, or travel itinerary as proof.
A PAN card is compulsory for all foreign currency purchases and overseas remittances under RBI's Liberalised Remittance Scheme.
Under LRS, a resident Indian can remit up to $2.59 lakh in a financial year for approved purposes, such as travel and education.
Foreign currency transactions are tax-free up to Rs 10 lakh annually. Beyond that, 20 per cent TCS is applicable under current rules.
Forex cards may include issuance, reload and ATM withdrawal charges. International card payments can also attract forex mark-up fees.
Experts advise paying in local currency instead of rupees to avoid extra conversion charges. DCC fees can range between 3 per cent and 5 per cent.