While the USA and Canada are increasingly cashless societies, having a spot of physical currency is still essential for tipping, small street vendors, laundromats, and more. However, convenience comes at a price. Recent travel data indicates that Indian travellers can lose up to ₹4,000 for every ₹1,00,000 spent abroad due to sub-optimal exchange rates and ATM fees. If you are wondering, “Can I withdraw cash from forex card while standing at an ATM in Times Square?” the answer is yes. But without the right card, you might be paying a premium for the privilege. Let us understand how you can save your money from being deducted by following easy tips.
Can you withdraw cash from a forex card in the US and Canada?
The short answer is yes; you can use almost any international card at ATMs that display the VISA or Mastercard logo. However, the charges can be a bit of a minefield. When you use an ATM in America, you are typically hit with three different costs:
- Flat withdrawal fee: Most Indian banks charge a fixed fee (often ₹300–₹500 + GST) per transaction.
- Forex markup: Traditional cards add a 3–5% margin to the forex card Canada or US exchange rate.
- Local ATM surcharge: US and Canadian ATM operators usually charge an additional $3 to $7 per withdrawal, which is separate from your bank’s fees.
Rules and limits for your forex card on a Canada or USA trip
When planning your cash strategy, it is important to stay within the RBI’s legal framework. Under the Liberalised Remittance Scheme (LRS), you can spend up to USD 250,000 per financial year (roughly ₹2.1 Crore).
However, there are specific limits for cash:
- Cash notes: You can generally carry up to USD 3,000 in physical currency notes per visit.
- TCS tracking: The Indian government collects TCS (Tax Collected at Source) on foreign spends exceeding ₹7 Lakh in a financial year.
One of the best things about the Niyo app is that it tracks your LRS and TCS limits in real-time. You don’t have to do the mental maths; the app shows you exactly how much of your ₹7 Lakh threshold remains, helping you avoid unexpected tax hits.
Essential perks for the North American traveller
Beyond just being the best forex card for USA and Canada in terms of fees, Niyo provides several travel-centric features:
- Lounge pass: Long layovers at JFK or Pearson International are much better with lounge access. With Niyo, if you spend ₹50,000 in international transactions in a quarter, you earn 1 free Lounge Pass for an international lounge (outside India).
- International eSIM: Connect the moment you land with a Niyo eSIM, with plans starting from just ₹50.
- Niyo coins: Earn rewards on every spend, which you can redeem to pay for up to 75% of your future flight or hotel bookings within the app.
Why Niyo is the best card for USA and Canada trips?
To avoid the bulk of these charges, savvy travellers are moving away from traditional prepaid cards. Niyo offers a digital savings account with an international debit or credit card that is a total game-changer for North American travel.
Here is why it stands out:
- Zero forex markup on all international transactions: Unlike standard cards that take a cut of every dollar, Niyo offers the real-time VISA exchange rate. This can save you thousands of rupees over the course of a three-week trip.
- ATM fee reimbursement: Niyo reimburses the fee for one international ATM withdrawal (up to ₹500) as Niyo Coins each quarter. This helps offset the flat fee your bank would normally charge.
- Load in INR and spend: You don’t need to worry about using USD or CAD separately. You load your account in INR via UPI, NEFT, or IMPS, and the card auto-converts the amount at the moment you spend or withdraw.
Final thoughts
If you are still asking, “Can I withdraw cash from forex card safely?” the answer is a resounding yes, provided you use a card that doesn’t eat into your budget. By choosing a card with zero forex markup on all international transactions, you ensure your money is spent on your North American adventure rather than on unnecessary bank fees. With 24/7 in-app support and the ability to lock your card instantly for security, Niyo is the smartest way to manage your INR while exploring the USA & Canada.
This article has been written by the AB Mantra Team, a group of passionate writers and researchers covering topics across fashion, travel, finance, health, education, technology, lifestyle and business. Our goal is to share accurate, easy-to-understand, and helpful information that adds real value to readers. Each piece is carefully reviewed to maintain clarity, reliability and trust.
