A forex card is a prepaid travel card loaded with foreign currency that you can use abroad like a debit card. A common question after a trip or a semester abroad is what to do with the money left on it. Can you send it to your bank account? The short answer is yes, but not as a normal transfer. You ask the card issuer to refund, or encash, the balance, and it pays you rupees in your Indian bank account. This guide explains how that works, the Reserve Bank of India (RBI) rules on unspent foreign exchange, the tax rules that apply from April 2026, and the costs to watch.
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What Is a Forex Card?
A forex card is issued by a bank or an authorised money changer. You load it with one or more foreign currencies at the exchange rate of the day, and then use it to pay at shops and restaurants or to withdraw cash from ATMs abroad. It is protected by a chip and PIN, like other cards.
There are two main types:
- Single currency cards: Hold one currency, such as US dollars.
- Multi currency cards: Hold several currencies in separate wallets, such as dollars, euros and pounds, which is useful when visiting more than one country.
Because the rate is locked in when you load the card, you know in advance how much you are spending in rupees. This is the main reason travellers and students prefer a forex card to paying with a regular debit card abroad.
Can You Transfer Money From a Forex Card to a Bank Account?
A forex card is not a bank account, so you usually cannot send money from it to any account you like, as you would with UPI or net banking. What you can do is ask the issuer to return the unused balance. The issuer converts the foreign currency back into rupees and credits it to your own savings account in India, usually the account linked to the card or the one you used to load it.
A few points to keep in mind:
- The refund normally goes only to an account in the cardholder’s own name.
- The money is converted at the issuer’s buying rate on the day, which is lower than the selling rate you paid when loading.
- You cannot normally move the balance to a foreign bank account. If you need to pay fees or rent abroad, a wire transfer under the Liberalised Remittance Scheme is the proper route.
- Some banks let you keep the balance on the card for your next trip, within RBI limits explained below.
What RBI Rules Say About Unspent Foreign Exchange
The 180 Day Rule
Under the Foreign Exchange Management Act rules, a resident individual must surrender unspent or unused foreign exchange to an authorised dealer within 180 days of returning to India. Surrender here simply means selling it back for rupees. RBI has also told banks that they should not refuse to buy the foreign exchange just because the 180 days have passed.
What You Can Keep
A returning traveller can keep foreign currency notes and travellers cheques up to a total of 2,000 US dollars, plus any amount of foreign coins, for future trips. Many banks apply a similar limit to forex cards. Kotak Mahindra Bank, for example, says you can keep the card if the balance is below 2,000 US dollars; otherwise the money should be refunded within 180 days of your return.
How Quickly Banks Must Refund
RBI rules say that card issuers must refund the unused balance on a prepaid travel card as soon as the cardholder asks. The issuer may hold back three things for a short time:
- Amounts for purchases that have been approved but not yet settled by the merchant’s bank.
- A small balance of up to 100 US dollars for pending transactions, until the settlement cycle ends.
- Any fees or taxes payable in India.
In practice, this is why some banks ask you to wait a few days after your last transaction before closing the card. Hotels and car rental firms, for instance, may take time to settle a final charge.
Another Option: An RFC Account
If you want to hold the foreign currency rather than convert it, you can open a Resident Foreign Currency (Domestic) account with a bank. RBI allows unspent foreign exchange from a trip to be credited to this account. It is useful for people who travel abroad often.
How to Encash Your Forex Card: Step by Step
- Wait for pending charges to clear. Check your statement to make sure no hotel or rental charges are still pending.
- Check the balance. Use your bank’s app, net banking or customer care.
- Apply for encashment. Many banks offer this online through net banking or the app. Otherwise visit a branch or forex outlet with the card.
- Submit documents if asked. These may include a refund form, your passport, PAN and sometimes proof of travel.
- Receive the rupees. The bank converts the balance and credits your savings account, often within a few working days.
- Close or keep the card. Ask the bank to close the card, or keep it open for your next trip.
Tax Rules: TCS From April 2026
Loading a forex card counts as spending under the Liberalised Remittance Scheme, which lets a resident send up to 250,000 US dollars abroad each financial year. Banks must collect tax at source (TCS) on these amounts above a threshold. From 1 April 2026 the rules are:
| Purpose | Up to 10 lakh rupees a year | Above 10 lakh rupees |
|---|---|---|
| Education funded by a loan from a specified institution | Nil | Nil |
| Other education or medical treatment | Nil | 2 percent |
| Travel and other purposes | Nil | 20 percent |
The 10 lakh rupee limit is combined across all banks and all ways of sending money abroad, linked to your PAN. A higher rate can apply if your PAN is inoperative because it is not linked with Aadhaar. TCS is not lost: you can claim it as credit when you file your income tax return. Banks do not refund TCS when you encash your card, so plan how much to load.
Students heading abroad can read our guide on studying abroad with the help of consultants for wider planning tips.
Fees to Watch
- Issuance and reload fees: Some banks charge to issue or top up the card.
- ATM fees: Withdrawals abroad usually carry a fee per use.
- Cross currency charges: Paying in a currency not loaded on the card can cost extra.
- Exchange rate spread: The gap between the buying and selling rate means you lose a little when you load and again when you encash.
- GST: GST applies on the value of currency conversion and on service fees.
Read the fee schedule before you travel. Small charges add up on long trips.
Forex Card or International Debit Card?
A debit card linked to your savings account is simple to use abroad, but each payment is converted at the rate on that day, often with a markup of a few percent. A forex card fixes the rate when you load it and keeps your main account separate if the card is lost. For short holidays either can work. For long stays, such as a year of study, many families prefer a forex card for daily spending and wire transfers for large payments like tuition.
Tips for Using a Forex Card Safely
- Keep the card and PIN separate, and save the bank’s international helpline number.
- Carry a backup payment method in case the card is blocked or lost.
- Turn on transaction alerts so you notice any misuse at once.
- Do not load much more than you expect to spend, to avoid large conversion losses on return.
Many of the same safety habits apply to all cards. See our tips on how to avoid card fraud. Before you go, also make sure you have travel medical insurance, and consider travel apps that help you track spending.
This article is general information, not financial or tax advice. Rules and fees can change, so check the latest terms with your card issuer.
What We Changed From the Old Post
The old post explained forex cards in general but did not clearly answer its own question. We added how refunds to a bank account work, the RBI rules on surrendering foreign exchange, the 2,000 US dollar limit, refund timelines, the RFC account option, TCS rules from April 2026, fees and safety tips. We removed a link to a commercial card seller.
Frequently Asked Questions
Can I transfer my forex card balance to someone else’s account?
Usually not. Refunds are paid in rupees into the cardholder’s own Indian bank account.
How long can I keep money on my forex card after returning?
RBI rules ask residents to surrender unspent foreign exchange within 180 days, but you may keep up to 2,000 US dollars in notes and travellers cheques for future trips. Ask your bank how it applies this limit to cards.
Will I get the same rate when I encash my card?
No. Banks buy back currency at a lower rate than they sell it, so you get slightly fewer rupees.