Banking: Prashant Joshi

I am going on a holiday and plan to carry up to $2,000. How much of this can I carry via a prepaid card? What are the other ways of carrying money, as I don't wish to carry too much cash in hand. Is traveller's cheque a better option?
You can transfer the entire $2,000 via prepaid card, provided you have not exhausted your yearly permissible limit of $10,000. This limit is according to the Foreign Exchange Management Act. You should carry cash only for your emergency requirements, say 10-20 per cent of your total foreign exchange requirement, and the balance can be carried in the form of a prepaid card. A traveller's cheque is another option to carry foreign currency but it has a limitation of getting it exchanged through a bank overseas. A prepaid card is definitely a better option. It has wider acceptability in the form of Visa/Mastercard merchants and ATMs, compared with the limited acceptability of traveller's cheques. Further, a prepaid card is convenient and provides better security.

Six months ago, a private bank sent a free credit card to my residence. Though I hold a savings account with the bank, I didn't use the card. However, the bank has been sending statements for two months, charging me for the credit card I haven't even used. How should I take this forward?
Banks cannot issue credit cards without the consent of the customer, even if it is a free. So, if the customer has not applied or consented to the issue of the card, he has no obligation to pay. To minimise the possibility of fraud, the card received by the customer should be immediately destroyed. Additionally, if the card is free, then there will be no charges unless the card has been used (by customer or by a third party fraudulently). You need to call or write to the bank, informing you have not asked for this card and it needs to be immediately cancelled. In case of any negative Credit Information Bureau (India) Ltd update by the bank, they need to correct that as well. If the bank is not responding or is not willing to help, you should approach the banking ombudsman to resolve this issue.

The views expressed are the expert’s own. Send your queries to yourmoney@bsmail.in

Today, Prashant Joshi, MD & head, private & business clients (India), Deutsche Bank, answers your questions