Forex card are the new and better means of carrying cash while traveling abroad which is gaining popularity among the travelers. According to reports the market has grown 15% to 18% in past 3 years which is primarily driven by leisure, medical and student travelers. In India, traveler card is more popular among the corporate traveler which comprise of 78% while the remaining 22% comprise of the remaining travelers. But what needs to be lesser known facts are that about the regulations that govern these.
Foreign Exchange Regulations:
There are different regulations in different countries, In India the Forex market is governed by FEMA (Foreign Exchange Management Act), In UK by Financial Conduct Authority (FCA) and in USA by Consumer Financial Protection Bureau (CFPB) but the main aim of all the regulations is protection and safety of the traveler from the fraud and other mal practices.
FEMA – Historic and current limits:
In case of FEMA they also have certain limitations related to amount which can be transferred in these prepaid cards. The limitations are:
|Sr No.||Particulars||Limits Past||Limits Current|
|1||Leisure||USD 25,000||USD 2,50,000|
|2||Medical||Upto USD 25,000 (In any country other than Nepal & Bhutan)||USD 2,50,000|
|3||Student||Estimate given by institution abroad or USD 1,00,000 academic year whichever is higher.||USD 2,50,000|
|4||Employment||USD 1,00,000||USD 2,50,000|
|5||Emigration||USD 1,00,000 or the amount prescribed by the country of emigration.||USD 2,50,000|
|6||Cash Limit||USD 3000 or equivalent to per traveler per trip.
The apparent change in the stance of the regulator points to the fact that India as a country recognizes the need abroad of the citizens of the country and has relaxed the limit to accommodate them.