What is a Forex Card?

How to Use It, Load Currency & RBI Guidelines – Full Guide
Traveling internationally comes with many exciting experiences—but also requires careful planning, especially when it comes to managing foreign currency. Carrying large amounts of cash can be risky, while using debit or credit cards abroad often comes with high fees.
The best solution? A Forex Card—a secure, prepaid travel card that allows you to load and use multiple foreign currencies with ease.
In this blog, we’ll explore what a Forex card is, how to use it, how to load it, and importantly, the RBI guidelines that govern its usage for Indian residents.

💳 What is a Forex Card?
A Forex Card, also known as a Prepaid Travel Card, is a reloadable card that allows you to carry foreign currency in digital form while traveling abroad. It works just like a debit card and can be used for purchases, ATM withdrawals, and online payments in foreign currency.

✅ Who Can Use a Forex Card?
Forex cards are ideal for:
• Tourists
• Students studying abroad
• Business travellers
• Indian residents traveling for medical, employment, or emigration purposes

🌐 Types of Forex Cards
1. Single Currency Forex Card – Loaded with one foreign currency
2. Multi-Currency Forex Card – Can hold multiple currencies (e.g., USD, EUR, GBP, AED)

💡 Benefits of Using a Forex Card
Benefit Description
🔒 Security Safer than cash; chip & PIN protected
💱 Locked-in Exchange Rate No currency fluctuation risk
📉 Low/No Markup Fee Unlike debit/credit cards that charge 3–5% foreign transaction fee
🔁 Reloadable Top up online even while traveling
🏧 ATM Access Withdraw cash in local currency
📲 App/Online Portal Check balance, reload, and track spending in real-time

🧭 How to Use a Forex Card – Step by Step
1. At POS (Point of Sale)
• Use it like a debit card at stores, restaurants, etc.
• Choose the correct currency if it’s a multi-currency card
• Enter your PIN to complete the transaction
2. ATM Withdrawals
• Insert card into an ATM abroad
• Choose withdrawal in local currency
• Withdraw cash as needed
3. Online Transactions
• Use the card for online payments on international websites
• Useful for paying tuition fees, flight bookings, hotel reservations, etc.
4. Track Your Usage
• Use the card provider’s website or app to:
o Check balance
o View transaction history
o Reload the card

💰 How to Load and Reload a Forex Card
📌 Initial Load (Before Travel)
1. Choose a Forex card provider (Bank or travel agency, Foreign currency exchange agent)
2. Submit required documents:
o Passport
o PAN card
o Visa copy (if applicable)
o Confirmed air ticket with return ticket
o Pan card (Indian resident)
3. Choose the desired currency and amount
4. Pay via net banking, UPI, or bank transfer
5. Card is issued and activated within 1–2 days
🔁 Reload While Abroad
• Log into your card portal
• Select the currency and amount
• Pay online via net banking
• Balance updates usually within 24 hours

📜 RBI Guidelines on Forex Cards (As per FEMA Regulations)
The use of Forex cards in India is regulated by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA). Here are key RBI guidelines to be aware of:
1. Eligibility & Usage
• Forex cards can only be issued to Indian residents traveling abroad.
• Forex cards are to be used only for legitimate travel-related expenses like hotel bills, shopping, dining, tuition, etc.
2. Limits on Foreign Exchange
Under the Liberalized Remittance Scheme (LRS):
• Individuals can remit up to USD 250,000 per financial year for travel, education, medical treatment, or gifts.
• This includes money loaded onto Forex cards.
3. Forex Cards Cannot Be Used in India
• RBI strictly prohibits the use of Forex cards within India for any transaction.
• Using the card for domestic purchases is a violation of FEMA guidelines.
4. Unutilized Balance
• Any unspent balance on the card should be:
o Surrendered within 180 days of return from foreign travel, OR
o Encashed into INR
• Alternatively, you can keep the balance for future travel within this period.
5. KYC and Monitoring
• Forex card issuance requires full KYC compliance.
• Banks and institutions must report transactions to RBI as per regulatory norms.

⚠️ Important Do’s and Don’ts
✅ Do’s
• Inform your bank if you plan to reload the card from abroad
• Keep your Forex card separate from your wallet for safety
• Enable transaction alerts via SMS/email
• Carry a backup card if available (many providers offer a twin card)
❌ Don’ts
• Don’t use the Forex card in India
• Don’t exceed the LRS limit
• Don’t share your card PIN or details with anyone

🔄 Forex Card vs International Debit/Credit Card
                                                Feature Forex Card                     Debit/Credit Card
Exchange Rate                               Locked                                    Varies daily
Mark-up Fee                                      0–1%                                           3–5%
Conversion Charges                       None                                              Yes
Safety                                                High                                         Moderate
RBI Reporting Required under LRS Not required (except high-value usage)

🏦 Popular Forex Card Providers in India
Bank / Provider                 Card Type                      Key Features
HDFC Bank               Regalia Forex Plus              Multi-currency,

                                                                                   24×7 support
Axis Bank                Multi-Currency Card             16 currencies,

                                                                                     chip & PIN
ICICI Bank              Student Forex Card               Ideal for tuition

                                                                                + living expenses
SBI                          Foreign Travel Card                Single currency

                                                                                  widely accepted
BookMyForex        Multi-Currency Card              Home delivery,

                                                                                    online reload
EbixCash                Multi-Currency Card              10 currencies,

                                                                                   global support

✈️ Final Thoughts
A Forex card is one of the most practical and secure financial tools for international travellers from India. It offers the convenience of a debit card, the cost-effectiveness of wholesale currency exchange rates, and the peace of mind of being RBI-compliant.
Whether you’re a student, tourist, or business travellers, using a Forex card will help you manage your international expenses efficiently, avoid high fees, and follow the correct legal procedures under FEMA and RBI guidelines.

Need a Forex card today?
Explore options from your bank or compare rates from top providers near you.
Have questions about RBI rules or how to apply? Drop them in the comments below—we’re here to help!