Indian international spending is experiencing significant growth, with 32.83 million Indian national departures recorded in 2025, representing a 6.3% increase from 2024, according to the Ministry of Tourism's latest dashboard. This surge in travel activity is reflected in financial data, as RBI data shows that resident Indians remitted $17.01 billion for travel in 2023-24 under the Liberalised Remittance Scheme, making travel the largest category of outward remittances that year. As reported by The Economic Times, travel is no longer confined to large annual holidays but includes business travel, international shopping, education, experiences and frequent short trips, fundamentally changing how Indians approach international spending.
Zero forex cards eliminate the explicit foreign exchange markup that typically ranges between 2% and 3.5% on many cards. This markup is charged when Indian cardholders make payments in foreign currency, and a zero-forex card waives this explicit charge on eligible international transactions. According to recent analysis, zero-forex products can be particularly useful for frequent overseas travellers, although the overall value depends on the card's other charges and benefits. However, the word 'zero' applies to the forex markup, not necessarily every cost associated with using the card abroad.
The exchange rate conversion process requires careful attention beyond the forex markup. When a card issuer converts foreign currency to rupees, it uses card networks' own conversion rates rather than the interbank rate visible to travellers. Travellers should look at the overall cost of international transactions rather than focusing only on the headline forex markup. The more critical issue may be Dynamic Currency Conversion (DCC) at payment terminals, where machines offer to pay in Indian rupees instead of local currency. Choosing rupees may look convenient, but DCC can involve an exchange rate set by the merchant or its payment provider, which may be less favourable. The simple rule: when abroad, choose the local currency when the terminal gives you the choice.
Zero forex markup does not necessarily mean zero cost for international transactions. Overseas ATM withdrawals can still attract charges, with fees of 2.5% for one zero-forex card and ₹425 plus GST beyond specified free withdrawal limits for certain Niyo cards. Credit card cash withdrawals can be even more expensive due to withdrawal fees and immediate interest charges. Additionally, zero-forex cards may still carry annual fees or spending conditions for waivers. For occasional travellers, the annual fee may not be worth the savings unless the card offers other benefits that justify the overall cost.
When evaluating international travel credit cards, travellers should compare the overall package, including rewards, travel benefits and forex charges rather than selecting a card solely based on its headline markup. Some premium cards with forex fees can offer better overall value by providing substantially higher rewards on overseas spending. The analysis suggests that the right card is less about finding the biggest 'zero' and more about calculating your total cost of travel spending. For frequent international travellers, eliminating a 2-3.5% forex markup can be meaningful, but for occasional holidaymakers, annual fees and other charges can change the calculation. The right choice ultimately depends on spending patterns, travel frequency and the value placed on additional benefits.
