The flexibility of the forex card is that you can only load money from your Indian account, and that money cannot be moved or transferred to another foreign account. As a result, there is a tight procedure to transfer your Forex card balance to your bank account.
What steps do we need to follow to transfer a Forex card balance to a bank account?
Visit the bank branch that issued your Forex card or a financial institution.
1. Send your proof of identity and your passport and bank account number.
2. If a Forex card is leftover, you will transfer the balance of your forex card to your bank account.
3. Transfer funds via NEFT by submitting and cancelling a check.
4. Here, the bank will confirm your identity and provide you with a cancellation check to transfer the remaining money to your bank account via NEFT. Should transfer the amount only after verification.
According to Reserve Bank of India regulation, you cannot transfer the forex card balance directly into other accounts. An official procedure can be utilised to move the Forex card balance to a bank account, with no different process specified. You must withdraw the amount of a forex card issued by an Indian bank and cannot release the same amount from any foreign account because that is not included in the guidelines. The amount from Forex cards can be used for bill payments and other purposes during your visit, but not as money.
How should I withdraw money from my travel card?
Withdrawing money from your travel card is effortless, whether you use an ATM or a bank account transfer.
ATM: To withdraw money from your travel card, insert it into any ATM in another country and follow the instructions. It’s as easy as using your standard bank card to make a withdrawal.
Bank Account: By logging on to the Bank app or Net Banking service, you can transfer funds preloaded on your card to a Bank transaction account.
If you want to, you can go straight to your bank.
How do I transfer money from a forex card to my bank account?
To transfer funds from your travel card to a bank account, go to your nearest branch and fill out the necessary paperwork. If your identification needs to be verified, you should have the following documents in hand.
- Forex Card
- Valid ID Proof/ Passport
- Bank account number
- A cancelled cheque of your bank account
Tips from our side:
When you withdraw funds from your Forex Card and deposit them into your bank account, you lose protection against currency fluctuations. You’ll need to put foreign currency into the card at prevailing rates the next time you go. If you travel frequently, keep your cash on your card to avoid repurchasing it.
For online transactions, Can we use forex?
You can use it to shop online or make online payments for flights, hotel rooms, restaurants, and other services just like you would do with a credit card. Utilising a Forex Card can avoid cross-currency charges on online transactions.
Other advantages of using forex cards are:
- There are several hotels and restaurants which only accept forex cards from foreigners.
- Since rates are locked when the currency is loaded on the card, they safeguard you from fluctuations in foreign currency values.
- Many cards are now contactless, allowing you to tap and pay. Because the card never has to leave your palm, this is a safer way to pay.
In an ATM, can we use a forex card?
It depends on which debit networks your bank participates in and which debit networks the ATM you’re using engages. Transfer money from a forex card to a bank account. Most debit cards are members of one of two worldwide debit networks: Visa or Mastercard. Cirrus or Maestro (on Mastercard) and Electron are two examples (on Visa).
A slew of small logos can be seen on the back of your bank card. Look for an ATM with a logo that matches one of the logos. The main drawback of utilising Plus, Cirrus, or other foreign debit networks is that additional costs will always be there. Plus, any applicable surcharges and the exchange rate from the local currency to the currency of your home bank., For example, Euro to Canadian dollars.
What is the advantage of forex cards?
Cash, traveller’s checks, credit and debit cards have disadvantages compared to forex cards.
Better exchange rates:
Loading currencies into Forex Cards offers better exchange rates than buying foreign currency in cash. It is the less expensive option for banks that provide Forex Cards. In most cases, the difference in exchange rate markup between buying US Dollar with a Forex Card and buying US Dollar with a US Dollar is 50 paise.
Fixed exchange rates:
Foreign currency is placed onto Forex Cards at fixed exchange rates. As a result, they are unaffected by currency value fluctuations in the forex market. If you load 1000 USD on your Forex Card, the value will remain the same regardless of INR-USD exchange rate movements.
Safer to use:
Forex cards are safer to use than cash since they are equipped with chip and pin technology to protect their money. If a Forex Card is lost or stolen, it can be disabled instantly and the balance on the card frozen.
Multiple foreign currencies can be carried on:
The money will be transferred to the secondary Forex Card issued along with the original. Forex cards allow you to carry different foreign currencies on one card simultaneously.
No additional charges:
Unlike Debit and Credit Cards, there are no additional fees when using a Forex Card at a PoS counter in another country. Furthermore, when used overseas, debit and credit cards operate at outrageous conversion rates, costing you an additional 5 to 11 per cent of the total transaction fee.
No Dynamic Currency Conversion Fee:
There is no charge for dynamic currency conversion. Because Forex Cards are already loaded with the local currency of a foreign nation, when used abroad, there will be no Dynamic Currency Conversion (DCC) fee. However, if you use a debit or credit card, you will be charged a fee.
Universally recognised and accepted is Forex Cards :
Unlike the Traveller’s Cheque, which has become obsolete, Forex Cards are widely recognised and accepted. When travelling overseas, one can also use a forex card to withdraw money from a nearby ATM. On the other hand, encashing a Traveller’s Cheque is a pain because you have to identify banks or businesses that will accept it. Even taxis in certain foreign countries accept the Forex Card as a form of payment. In reality, you can use your Forex Card to make online purchases in other countries, such as through e-commerce platforms. It is possible because they operate on Visa or MasterCard networks like ordinary debit and credit cards.
Can I withdraw cash from my forex card?
What is the best way to get money from my forex card?
You used an ATM or a bank account transfer to withdraw money from your travel card.
Insert your travel card into any ATM in another nation and follow the instructions to withdraw money. Making a withdrawal is as simple as using your regular bank card.
You can transfer money preloaded on your card to a Bank transaction account by connecting to the Bank app or using the Net Banking service.
You can go straight to your bank if you want to.
What is the procedure for transferring money from my forex card to my bank account?
Go to your closest branch and fill out the relevant papers to transfer funds from your travel card to a bank account. Transfer money from a forex card to a bank account. You should have the following documents available if your identity needs to be verified.
- Card for Foreign Exchange
- Passport/ID Proof of Validity
- Account number at a bank
- a bank account check that should cancel
Our recommendations are as follows:
You lose currency fluctuation protection when you withdraw money from your Forex Card and deposit them into your bank account. The next time you go, you’ll need to load foreign currency onto the card at current rates. Keep your cash on your card if you regularly travel to prevent having to repurchase it.