The Hindu Business Line : World Currency Card from IDBI Bank

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World Currency Card from IDBI Bank

G. Madhan

THE advent of plastic money and the 24-hour money vending kiosks has made travelling abroad a lot simpler. After all, one need not necessarily rely on traveller's cheque for money. Travel currency card, a variant of international debit card, is the current rage.

IDBI Bank's `World Currency' is one such travel currency card. Denominated in six international currencies, it competes with similar offerings from UTI Bank, State Bank of India and Citibank and indirectly competes with all international debit and credit cards.

Features

The card works like a typical ATM-cum-debit card. You can buy the card over-the-counter by providing a copy of your air ticket, valid passport, A2 form and PAN number.

The minimum amount that can be loaded on the card is $500.The maximum amount, however, would be based on RBI/FEMA guidelines (at present $10,000).

The card has a validity period of two years. You can stay in touch with your transactions on your card through the Internet banking facility offered by the bank. After you return home, you can either choose to have your balance reimbursed or retain the same on your card (if the balance is below $2,000) for any future trips.

Tagged to the card are:

A lost card liability insurance up to a maximum of Rs 2 lakh per card;

Lost baggage insurance of up to Rs 50,000;

Delayed baggage insurance (beyond 12 hours) of up to Rs 15,000; and

Attractive deals on air tickets, holiday packages and travel accessories.

Advantages

The card, as any other travel currency card, offers distinct advantages over traveller's cheques and International credit and debit cards. In addition to the safety, the card also allows you to retain the flexibility of withdrawing money, whenever you need it. The card does not carry an annual fee and the transaction charges involved are also lower or on par with international debit cards.

The `World Currency' card is also more advantageous than a credit card when it comes to transactions, as the exchange rate is fixed the day you purchase the card. The rate of exchange on a credit card, however, depends on the exchange rate on the day you make the purchases.

Suitability

The card is suitable for software and marketing professionals who frequently travel abroad and for those whose period of stay is not predetermined. However:

The transaction charges (for withdrawing cash) are higher than that levied by UTI Bank and State Bank of India.

If the balance in your card exceeds $2,000, you will have to surrender your card and take back the remaining amount in full within 90 days from the date of arrival.

Be aware of cross-currency conversions. For instance, if you use the dollar denominated card in Europe, the expenditure will be deducted from the card in euros, keeping dollar as the base currency. Using a travel card that is denominated in the appropriate currencies (say euros) will be a better option in such cases.

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