Traveller's cheques are a safe way to carry money when traveling abroad. They can be exchanged for cash at local banks and used to pay for hotels, restaurants, and shops. Unused cheques can be kept for a future trip as they do not expire. Traveller's cheques are insured against loss or theft and can be replaced if lost by providing the cheque numbers and receipt. Pounds sterling is generally the best currency to purchase traveller's cheques in for trips to Europe since it is widely accepted and avoids paying exchange rates twice if changing between currencies.

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Foreign Exchange

2. Traveller’s cheque is secure money while
traveling. They can be exchanged into cash in
any local bank of the country you visit and can
be used while paying at the hotel or
restaurant, also for payment in the shops.
Paying by cheque, You will receive the change
in cash.

3. Facts about traveller’s cheques!!!
Unused traveller’s cheques may be left for
another trip, as they are valid for unlimited
period of time, or You can change them into
cash in any bank.

4. Traveller's cheques are the safest way to take
money abroad because they can't be used
without your signature.

5. You actually sign twice - once in
front of the cashier when you buy
the cheques and once when you
cash them at the bank or bureau de
change when you will be asked for
proof of identity.

6. • The advantage of traveler's cheques is if you
lose them you can get your money back.
• But make sure you follow the instructions
about keeping a separate note of the cheque
numbers and the receipt so you know which
cheques have been lost.

7. • You can get traveller's cheques in most
currencies and pounds sterling are accepted
all over the world.
• If you buy traveller's cheques in dollars and
then change them again to a third currency
you will be paying for the exchange rate
twice. So pounds sterling is usually the best
currency, at least for European holidays.

8. Benefits Of Using A Traveller
Cheque
• Available for purchase in Canadian and U.S.
currencies
• Accepted worldwide
• Insured against loss or theft
• Backed by 24-hour emergency assistance

9. ENTITLEMENT
On a business visit (LERMS-Liberalized Exchange Rate
Management System) - $25,000 per trip.
On a personal visit ( BTQ-Basic Travel Quota) - $10,000 per
financial year.
For studies – Banks can give a maximum of USD 1,00,000.
There is no limit for others.

10. Foreign currency can be
purchased in the following forms:
• Currency (CN) – Maximum USD 2000
• Travellers Cheques (TCs) – a safe mode of foreign
currency.
• Cost of Traveller’s Cheques is higher than currency
as they are insured.

11. Forex Rates
• Buying rate: The rate at
which bank is buying the
forex is buying rate. For ex.
Bank buying forex from RBI
or from the customer.
• Selling rate: The rate at
which bank sell the forex to
the customers. The selling
rate is higher than the
buying rate.

12. • For e.g. A person
purchased USD 1000
@ INR 60.63 from the
bank and he sold the
forex back to the
bank for INR 57.5.

13. DOCUMENTS REQUIRED FOR
LERMS
• Valid passport
• Valid Visa on the passport
• Confirmed air ticket
• LERMS form to be filled in
• A letter on the letterhead of the company stating the
purpose and duration of visit and a declaration that
the forex is purchased under LERMS

14. A form to be filled in with particulars such as:
Name
Address
Nationality
Country(ies) of visit
Number, date & place of issue of passport
Declaration of the exchange applied for &
exchange already availed of