The Three Limits You Must Know
Before you travel, it’s essential to understand the three main financial regulations that govern your overseas spending. First is the Liberalised Remittance Scheme (LRS) limit, set by the Reserve Bank of India. This allows every Indian resident to spend up
to USD 250,000 per financial year (April to March) for purposes like travel, education, and investments. Second is the Tax Collected at Source (TCS), which is an advance tax collected on your foreign spending. For most general purposes like hotel bookings and shopping, there is no TCS on the first ₹10 lakh spent in a financial year. Beyond that, a 20% TCS is applied, which you can later claim back when filing your income tax returns. Finally, and most immediately, are your individual card limits—the maximum you can spend on your debit and credit cards, set by your bank. These daily or per-transaction limits are often much lower than the overall LRS ceiling and can catch travellers by surprise.
Why Checking Card Limits Is Not Optional
Many travellers assume their high domestic credit limit automatically applies abroad, but that's often not the case. Banks set separate, usually lower, default limits for international transactions to prevent fraud. Imagine trying to pay for a hotel or a special dinner only to have your card declined, not due to lack of funds, but because you've hit a preset daily international limit you never knew existed. This can be particularly problematic with debit cards, which often have stricter controls. By default, many Indian debit and credit cards have their international usage disabled. Checking and enabling this facility before you leave is a critical step to ensure your cards work smoothly when you need them most. It avoids the stress of frantically trying to contact your bank from a different time zone to get your card unlocked.
How to Check and Enable International Limits
Checking your international transaction limits is straightforward and can usually be done in minutes. The most common methods are through your bank's digital platforms:
Mobile Banking App: This is often the quickest way. Log in to your bank’s app (like iMobile for ICICI or the SBI Card app), navigate to the 'Cards' or 'Service Requests' section, and look for an option like 'Manage Card Usage' or 'Modify Limit'. Here, you can both enable international transactions and set your desired spending limits.
Net Banking Portal: If you prefer using a desktop, log in to your bank’s net banking website. You’ll typically find the relevant options under a 'Cards' or 'E-Services' tab. For instance, HDFC Bank customers can find it under Cards > Request > Set International/Domestic Usage. SBI users can find a similar path under E-Services > ATM Card Services.
Customer Care: If you're not comfortable with digital channels, you can call your bank’s customer care number from your registered mobile. A representative can walk you through the process after verifying your identity.
Credit Cards vs. Debit Cards: Key Differences for Travellers
While both card types are useful, they function differently for overseas spending. As of mid-2026, international spending on credit cards while you are physically overseas has been kept out of the LRS and TCS ambit, following a government decision to put the rule on hold. This means your credit card swipes abroad generally won't attract the 20% TCS, making them a simpler option for many purchases. However, transactions on debit cards, forex cards, and wire transfers are subject to TCS rules once you cross the annual ₹10 lakh threshold. Therefore, a common strategy is to use credit cards for most day-to-day spending abroad and use a debit card for ATM cash withdrawals. Just remember that cash withdrawals on credit cards usually attract high fees and interest from day one.
Need a Higher Limit? Here’s How to Ask
If you anticipate making large purchases and find your default international limit too low, you can request an increase from your bank. Most banks allow you to apply for a higher credit limit through their app or net banking portal. To improve your chances of approval, ensure you have a good credit score (typically above 720), a consistent history of paying your bills on time, and have updated your latest income details with the bank. A higher income demonstrates a greater ability to handle more credit responsibly. A healthy credit utilisation ratio—ideally keeping your spending below 30% of your total limit—also signals to the bank that you are a reliable borrower.
