Use of International Debit Cards by Resident Indians while on a visit outside India

By Vijay Kumar

RBI notes, “resident Indians who purchase their travel cards, are permitted refund of the unutilised foreign exchange balance only after 10 days from the date of last transaction and accordingly, this condition is stated in the "user guide". Since these cards are expected to act as substitutes for cash/Travellers Cheques, the facilities available to the user will have to be similar.”

So, RBI now directs that;

All Authorised Persons shall redeem the unutilized balance outstanding in the cards immediately upon request by the resident Indians to whom the cards are issued subject to retention of:-.

1. The amounts that are authorised and remain unclaimed/ not settled by the acquirers as of the date of redemption till the completion of the respective settlement cycle;

2. A small balance not exceeding USD 100, for meeting any pipeline transactions till the completion of the respective settlement cycle; and

3. Transaction fees/service tax payable in India in Rupees.

RBI A. P. (DIR Series) Circular No.102, Dated: April 02, 2012