niyo card will offer the visa global and transparent usd to inr exchange rates. there is extra fees charges. this is because niyo act like a bank account or a debit card, there is no credit given to the customer, you are spending your own money.
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What is the best mode to carry currency to bali?
- Thread starter anandkk
- Start date
Niyo is better in some ways as it doesn't charge TCS till 7L is reached, but sometimes it has down times (they do inform somewhat in advance). IndusInd charges 5% TCS from the start I believe.
Not all debit cards charge below 7L, Niyo doesn't. IndusInd does I believe. And yes this is all claimable during filing taxes.
Yes MC has better rates in general. Niyo doesn't come in MC, earlier they had a DC, now only Visa.
No disadvantage except you lose that money's interest or liquidity till the refund time comes. They deduct it for everyone, cause not everyone pays taxes, and this is a way to motivate people who don't pay tax or file returns to pay it or lose the 5%.
I don't think there is any minimum amount for a specific transaction. 7L is the official government limit above which TCS should be charged.
Did u try it? Does sbi cashback card give 5% on it?
yaathran
TF Select
No. I have used IndusInd debit cards multiple times out of India. Until you reach 7L, they won't deduct extra. The message might say inclusive of TCS but it's not included until you reach 7L.
yaathran
TF Select
I have travelled to Indonesia multiple times. Indonesia is still a cash dominant economy. I would recommend you withdraw cash using cards like Niyo Global or IndusInd Exclusive / Pioneer debit cards (Best). Many ATMs in Indonesia doesn't charge ATM Access fee, you can withdraw cash for free any number of times if you use cards like IndusInd Exclusive / Pioneer debit cards.
That might be incorrect as it is 7L per individual, not per bank, not per card, not per anything else. Banks don't know how much you have spend elsewhere, there's no way for them to know, hence why most banks charge it upfront.
Not sure what's RBI regulation as to whom is liable for it, but considering nearly all banks are doing it I'd reckon they're mandated to do it or "highly advised" to deduct TCS on such transactions.
I don't think there's any benefits for them on doing it, it's just more overhead to them with no apparent gain.
TCS I've only seen it applied to debit cards, not credit/charge cards. Not sure what's the case on Niyo and other forex cards but still I'm under the impression they charge TCS at the time of reload.
yaathran
TF Select
Can you
Can you tell me which banks charged you up front? I have used my IndusInd exclusive debit card in Malaysia, Singapore, Laos, Cambodia, Vietnam, Sri Lanka and Phillipines in the last 2 months. I was not charged any TCS.
DBS, Standard Chartered and SBI now. I'm usually using credit card exclusively for anything overseas so hard to tell in other banks, but SC and DBS for sure they deduct it upfront.
Look at this:
It says it only applies on amounts exceeding 7L but yes, it's not clear about the practice of charging upfront or only above 7L as per their records.
But it's clear forex and debit cards will incur TCS so I don't see a point of using such cards unless they save me something upfront. The charges on forex markup is higher on debit cards and not much rewards, plus it's your own money and card linked to your bank account that you're risking so I wouldn't use these debit cards, let alone overseas.
I did argue with DBS as to why, they say it's as per RBI guidelines and they won't remove it. Later on I got clarification from elsewhere that virtually everyone is unable to check this against a PAN card hence they'll charge upfront. They do provide the documents to claim this back later on.
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yaathran
TF Select
I think not every bank does it. Ideally they are not allowed to deduct TCS unless your spends via that bank exceeds 7 Lakhs. You can raise complaint with RBI Ombudsman to come to a conclusion with specific bank.DBS, Standard Chartered and SBI now. I'm usually using credit card exclusively for anything overseas so hard to tell in other banks, but SC and DBS for sure they deduct it upfront.
Look at this:
It says it only applies on amounts exceeding 7L but yes, it's not clear about the practice of charging upfront or only above 7L as per their records.
I did argue with DBS as to why, they say it's as per RBI guidelines and they won't remove it. Later on I got clarification from elsewhere that virtually everyone is unable to check this against a PAN card hence they'll charge upfront. They do provide the documents to claim this back later on.
No point at this time, I wouldn't use the debit card for any foreign transactions.
But the argument made that is on per PAN card/individual is valid. They can't see how much of the 7L is used by any individual via other banks/channels and their tax liability therefore it's charged upfront.
Citibank makes this very clear
Tax Collected at Source (TCS)
All transactions made via debit card will always incur into TCS.
ICICI mentions this is only applicable to 7L through all channels in their bank
TCS on LRS transactions - ICICI Bank
TCS on LRS transactions have been implemented on Debit Cards from <Oct 01, 2020>. For all the transactions falling under LRS, TCS shall be applicable on the amount in excess of Rs <7> lakh in a financial year.
I guess it will vary from bank to bank.
Shows how well this government thought this thorugh, as usual, super consistent, no gray areas, everyone knows how it needs to be done and nobody has doubts about it. /s
But foreign banks seem to play it on the safe side, to be compliant. I have cards in both Indian and foreign banks, I've had issues multiple times due to compliance like converting accounts accordingly as per your tax residence. Standard Chartered and DBS froze my accounts several times now due to things like that.
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vikramsri
TF Neo
Some cash in USD which would be converted to IDR for emergency.
Cash required -> ATM withdrawal with Indusind Exclusive Visa Signature debit card. (0% Forex markup)
POS Payments -> Standard Charterd Ultimate Visa Infinite CC (Effective reward rate of 1.14)
Duty Free Payments -> Standard Charterd Ultimate Visa Infinite CC (5 x 3.33 % reward rate)
Cash required -> ATM withdrawal with Indusind Exclusive Visa Signature debit card. (0% Forex markup)
POS Payments -> Standard Charterd Ultimate Visa Infinite CC (Effective reward rate of 1.14)
Duty Free Payments -> Standard Charterd Ultimate Visa Infinite CC (5 x 3.33 % reward rate)
This is what I did for 1 week stay. I booked accommodation, Waterbom theme park, telega waja river rafting, entire benoa beach activities, sim with data for a week/month picked up at airport. And rental bike as well by reputed company to be ready at hotel. Prebooked cab airport to hotel. Then carried dollars. Bookmyforex has tieups. Went straight to ubud and made conversion.
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