Charges explained
Forex Charges for International Travel from India
Last updated 5 October 2026
Buying foreign exchange in India is not a single price. There is the exchange rate markup, a service charge, GST on that service charge, sometimes TCS, and then card or delivery fees. Each is small; together they routinely add 2–4% to the cost of a trip.
This page lists every charge you can be asked to pay, how each is calculated, and which ones you can legitimately avoid.
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1. Exchange rate markup
The largest cost and the least visible. Dealers quote a rate above mid-market for selling you currency. Airport counters sit 3–5% above; online providers 0.4–1.5%. This alone decides most of the difference between a cheap and expensive trip.
2. GST on forex transactions
GST is charged on the value of the service, calculated on a slab basis rather than a flat percentage of your whole transaction. The slabs are progressive: a small percentage of the first tranche, less on the next, with an overall cap. In practice it is a modest amount on typical travel sums, but it should appear itemised on your invoice — ask if it does not.
3. TCS under the Liberalised Remittance Scheme
Tax Collected at Source applies to overseas remittances and overseas tour packages above the annual threshold, with concessional treatment for education funded by a loan. TCS is not a fee: it is credited against your income tax and shows in Form 26AS. It does, however, increase the cash you need at purchase time.
4. Card, delivery and ATM charges
- Forex card issuance: ₹100–₹500
- Reload fee: often ₹50–₹100 per reload
- ATM withdrawal abroad: roughly USD 2–3 per transaction plus any local operator fee
- Cross-currency fee: 2–3.5% when spending in a currency not loaded on the card
- Doorstep cash delivery: free above a threshold, otherwise a small flat charge
- Encashment on return: a second spread on unspent balance
Worked example
Say you exchange ₹2,00,000 for a Europe trip. At an airport counter with a 4% markup you lose about ₹8,000 to the rate. Through an online provider at 0.8% you lose about ₹1,600. Add issuance and GST of a few hundred rupees either way, and the provider choice alone is worth roughly ₹6,000 — more than a night's hotel.
How to cut these charges
- Compare all-in cost, not the headline rate
- Buy before you travel, never at the airport
- Split between a forex card and a small cash float
- Load only currencies you will spend to avoid cross-currency fees
- Ask for the GST and service charge itemised on the invoice
- Keep receipts — you need them for customs and for tax records
See your all-in forex cost
Compare providers with fees included, not just the headline rate.
Compare rates on TrovexFrequently asked questions
What charges apply when buying forex in India?
An exchange rate markup, a service charge with GST calculated on slabs, TCS above the annual LRS threshold, and product fees such as card issuance, reloads and ATM withdrawals abroad.
Is TCS refundable?
TCS is not a cost in itself. It is collected at source, appears in your Form 26AS, and is adjusted against your income tax liability or refunded when you file your return.
How much foreign currency cash can I carry from India?
Cash purchases of foreign currency are capped per trip under RBI rules, with the balance issued as a forex card or a wire. Your dealer will confirm the current limit at purchase.
Why is the airport rate so much worse?
Airport counters pay premium rent and serve travellers with no alternative, so their markup is typically 3–5% versus under 1.5% online.