Corporate forex management for business travel from India — cards, cash and compliance
By Diya Verma (Karthik Raghavan is a chartered accountant and business travel analyst who covers expense management, GST input credits, forex compliance and corporate booking strategy for Indian companies. He has advised startups and listed companies on travel-cost optimisation and DGCA passenger-rights compliance.) · Published · 10 min read
Indian companies sending employees abroad face forex logistics — loading travel cards, managing RBI limits, handling GST on forex charges. Here is a compliance-first guide to corporate forex for business travel.
Quick answer
For Indian corporate business travel, the most efficient forex approach is a multi-currency forex card (loaded by the company) for predictable expenses (hotel, meals, transport) and an international-enabled corporate credit card for variable or emergency expenses. RBI's Liberalised Remittance Scheme (LRS) allows up to USD 250,000 per person per financial year for business travel purposes, which is more than adequate for most corporate travellers. GST at 18% applies to the forex conversion service (the markup/commission), not the foreign currency itself. Keep all forex purchase receipts for the company's foreign exchange records and tax compliance.
Forex card vs corporate credit card vs cash
Multi-currency forex card: The best option for predictable international expenses. The company loads the card with the required foreign currency (USD, EUR, GBP, AED) before the trip. Benefits: locked exchange rate at the time of loading (no currency fluctuation risk during the trip), no dynamic currency conversion fees, works like a debit card at international merchants, and provides a clean transaction trail for expense reporting. Popular issuers: HDFC ForexPlus, ICICI Sapphiro forex, SBI forex card, Axis Bank forex card, BookMyForex, Thomas Cook forex card.
International corporate credit card: Good for variable and emergency expenses. The exchange rate is determined at the time of transaction settlement (typically 1-3 days after the transaction), which means some currency fluctuation risk. Credit cards charge a cross-currency markup of 1.5% to 3.5% on international transactions — this is lower on premium corporate cards (HDFC Infinia, Amex Corporate) and higher on standard cards. The advantage: no pre-loading required, higher spending limits, and fraud protection.
Foreign currency cash: Carry a small amount (USD 200-500 equivalent) for tips, small vendors and emergencies. Do not rely on cash for major expenses — it is harder to track, riskier to carry, and the exchange rate at airport counters is typically 2-4% worse than card rates. Buy currency from a bank or authorised dealer (Thomas Cook, BookMyForex), not from unauthorised money changers.
RBI limits and LRS compliance
The Reserve Bank of India's Liberalised Remittance Scheme (LRS) governs how much forex an Indian resident can remit abroad per financial year. The current limit is USD 250,000 per person per financial year (April to March) — this covers all outward remittances including business travel, personal travel, education, investment and gifts.
For most corporate business travellers, the USD 250,000 limit is not a constraint — a typical international business trip uses USD 3,000 to USD 15,000 in forex depending on the destination and duration. However, if an employee has significant personal remittances (property purchase abroad, education fees for children studying overseas), the combined personal + business travel forex could approach the limit. Finance teams should track per-employee LRS utilisation if the company has employees with heavy international travel schedules.
TCS (Tax Collected at Source): As of mid-2026, TCS at 5% applies on forex remittances above INR 7 lakh under LRS per financial year (verify the current threshold — it has been updated multiple times). For business travel, TCS paid can be adjusted against the employee's or company's income tax liability. Factor TCS into the forex budget for frequent international travellers.
GST on forex services
GST applies to the forex conversion service provided by banks and authorised dealers, not to the foreign currency itself. The GST is charged on the forex margin/commission, which is calculated as follows (simplified):
For forex amounts up to INR 100,000: 1% of the gross amount or INR 250, whichever is higher, is the deemed value of service. GST at 18% applies on this value.
For INR 100,001 to INR 10,00,000: INR 1,000 plus 0.5% of the amount above INR 100,000.
For amounts above INR 10,00,000: INR 5,500 plus 0.1% of the amount above INR 10,00,000, with a cap of INR 60,000.
This GST on forex services is claimable as ITC for the company if the forex is purchased for business purposes and the invoice carries the company's GSTIN. Ensure the forex vendor issues a proper GST-compliant tax invoice.
For broader GST ITC guidance on business travel expenses, see our GST ITC on flight tickets guide and our expense reporting guide.
Corporate forex policy best practices
1. Centralise forex procurement: Have the company purchase forex centrally (through a designated bank or forex dealer) rather than letting individual employees buy their own. This ensures consistent rates, proper invoicing and company-level LRS tracking.
2. Load forex cards 3-5 days before travel: This allows time for the card to activate and for a test transaction. Loading at the airport is more expensive (worse exchange rates) and risks activation delays.
3. Set per-trip forex limits by destination: Dubai 5-day trip: USD 1,500 to USD 3,000. London 5-day trip: USD 3,000 to USD 5,000. New York 5-day trip: USD 3,000 to USD 6,000. These are guidelines — adjust based on hotel (pre-paid vs on-site) and meal coverage.
4. Return unused forex within 7 days: RBI requires unused foreign currency to be surrendered to an authorised dealer within 180 days of return, but best practice is within 7 days — it simplifies accounting and avoids currency risk on unspent balances.
5. Maintain a forex register: Track per-employee forex purchases, LRS utilisation, TCS payments and unsurrendered forex. This is required for RBI compliance and tax audit purposes.
Common mistakes and how to avoid them
Dynamic currency conversion: When paying by card at an international merchant, you may be asked to pay in INR instead of the local currency. Always decline — DCC uses a terrible exchange rate (3-5% worse than your card's rate). Pay in the local currency and let your card handle the conversion.
Airport forex counters: Exchange rates at Indian airport counters are 2-4% worse than bank or authorised dealer rates. Buy forex from a bank branch or online dealer (BookMyForex, Thomas Cook) before heading to the airport.
Insufficient documentation: Every forex purchase above INR 50,000 requires Form A2 (declaration of purpose). Banks handle this for standard business travel, but ensure the purpose is correctly documented as business travel (not personal travel) for company tax and LRS purposes.
Compare flight fares for your international business routes on FlightGPT to plan the total trip budget including forex.
Frequently asked questions
What is the RBI limit for business travel forex from India?
The LRS limit is USD 250,000 per person per financial year for all outward remittances (including business travel). Most business trips use a fraction of this. TCS at 5% applies on forex above INR 7 lakh per year under LRS — verify the current threshold.
Should Indian companies use forex cards or credit cards for business travel?
Both. Forex cards for predictable expenses (locked exchange rate, no DCC fees); corporate credit cards for variable/emergency expenses (no pre-loading needed, fraud protection). Carry a small amount of cash for tips and small vendors.
Is there GST on forex purchases in India?
GST at 18% applies on the forex conversion service (the bank or dealer's markup/commission), not on the foreign currency itself. The GST is claimable as ITC for business-purpose forex if the invoice carries the company GSTIN.
How soon must unused forex be returned after a business trip?
RBI requires surrender within 180 days of return, but best practice is within 7 days. Early surrender simplifies accounting, avoids currency risk and ensures clean financial records.