ITFT-Traveller Cheques

Traveller Cheques

1. 00000000000000000000000
Foreign Exchange

2. Traveller’schequeissecuremoneywhile
traveling.Theycanbeexchangedintocashin
anylocalbankofthecountryyouvisitandcan
beusedwhilepayingatthehotelor
restaurant,alsoforpaymentintheshops.
Payingbycheque,Youwillreceivethechange
incash.

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'schequesarethesafestwaytotake
moneyabroadbecausetheycan'tbeused
withoutyoursignature.

5. Youactuallysigntwice-oncein
frontofthecashierwhenyoubuy
thechequesandoncewhenyou
cashthematthebankorbureaude
changewhenyouwillbeaskedfor
proofofidentity.

6. •Theadvantageoftraveler'schequesisifyou
losethemyoucangetyourmoneyback.
•Butmakesureyoufollowtheinstructions
aboutkeepingaseparatenoteofthecheque
numbersandthereceiptsoyouknowwhich
chequeshavebeenlost.

7. •Youcangettraveller'schequesinmost
currenciesandpoundssterlingareaccepted
allovertheworld.
•Ifyoubuytraveller'schequesindollarsand
thenchangethemagaintoathirdcurrency
youwillbepayingfortheexchangerate
twice.Sopoundssterlingisusuallythebest
currency,atleastforEuropeanholidays.

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. ForexRates
•Buyingrate:Therateat
whichbankisbuyingthe
forexisbuyingrate.Forex.
BankbuyingforexfromRBI
orfromthecustomer.
•Sellingrate:Therateat
whichbankselltheforexto
thecustomers.Theselling
rateishigherthanthe
buyingrate.

12. •Fore.g.Aperson
purchasedUSD1000
@INR60.63fromthe
bankandhesoldthe
forexbacktothe
bankforINR57.5.

13. DOCUMENTS REQUIRED FOR
LERMS
•Validpassport
•ValidVisaonthepassport
•Confirmedairticket
•LERMSformtobefilledin
•Aletterontheletterheadofthecompanystatingthe
purposeanddurationofvisitandadeclarationthat
theforexispurchasedunderLERMS

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&
exchangealready availed of