| Overview: Travel cheques were once essential for international travel, offering safety and convenience. Today, digital payments, forex cards, and instant loans have made travel cheques practically obsolete. This guide explains what travel cheques are, why they’ve declined, and better alternatives for Indian travellers. |
The Rise and Fall of Travel Cheques in India
Remember when your parents or grandparents would carefully pack travel cheques before heading abroad? Those days are long gone. Indian outbound travel spend surged to ₹2.72 lakh crore in FY24, marking a 25% increase year-on-year. However, less than 1% of Indian travellers now use travel cheques, with over 99% preferring digital payment methods.
A travel cheque was once the safest way to carry money internationally. Today, it’s merely a financial relic that most millennials and Gen Z travellers have never encountered. Understanding why this shift happened helps explain how travel financing has evolved and how other options, like personal loans, work best for modern Indian travellers.
What is a Travel Cheque?
A travel cheque is a pre-printed, fixed-denomination financial instrument issued by banks or financial institutions for international use. Think of it as a hybrid between cash and a bank draft. When you purchase a travel cheque, you sign it once. Later, when spending or exchanging it abroad, you countersign it in front of the merchant or money changer.
How Travel Cheques Worked in India
Before 2015, major Indian banks like SBI, ICICI, and HDFC offered travel cheques in various foreign currencies. You could purchase denominations ranging from ₹3,000 to ₹50,000 equivalent in USD, GBP, or EUR. The process required KYC documentation and adherence to RBI’s Liberalised Remittance Scheme limits.
Here’s a practical example: A Mumbai family planning a London trip in 2010 would visit HDFC Bank, purchase $2,000 worth of American Express travel cheques by paying the rupee equivalent, then countersign them at a London bureau de change to receive British pounds.
| Feature | Travel Cheque | Modern Digital Cards |
| Upfront fees | 1-4% | ₹0-₹1,500 |
| Exchange rate spread | 1-2% | 2-3% |
| Global acceptance | Low | High |
| Replacement if lost | Yes (3-7 days) | Instant blocking/reissue |
| CIBIL score impact | None | Positive if used wisely |
Why Travel Cheques Were Popular
Here are a few reasons why:
Security and Peace of Mind
Travel cheques offered unmatched security for their time. Unlike cash, they were replaceable if lost or stolen. The dual-signature requirement made fraud difficult. For Indian families concerned about carrying large sums abroad, travel cheques provided psychological comfort.
Regulatory Compliance
RBI regulations made travel cheques a structured way to manage foreign exchange. Banks maintained proper documentation, serial numbers, and KYC records. This aligned with India’s foreign exchange management policies and provided a clear audit trail for international remittances.
| Did You Know? Travel cheques were invented in 1891 by American Express founder James Fargo after he struggled to cash letters of credit during a European trip. |
Why Travel Cheques Became Obsolete
The primary reason travel cheques disappeared is simple: better alternatives emerged. Today, 79% of urban Indians use rewards-linked credit cards for travel bookings. Nearly 48% book travel via mobile apps, preferring instant payments through UPI, forex wallets, and digital banking.
Modern travellers want convenience. They prefer earning reward points, building their credit score, and having instant access to funds. Travel cheques offered none of these benefits.
Merchant Acceptance Declined
International acceptance of travel cheques plummeted. Hotels, shops, and banks stopped processing them due to fraud risks, slow settlement times, and administrative costs. Many merchants simply refused travel cheques, leaving tourists stranded.
Exchange bureaux began charging higher fees—sometimes 1.5% to 4%—making travel cheques more expensive than credit cards or forex cards.
Better Financial Products
Today’s alternatives far exceed travel cheques’ capabilities. For instance, if you need quick travel funding, an Airtel Finance Personal Loan offers amounts up to ₹9 lakh with approval within 24 hours. The interest rates start from 12.75% annually, and the entire process is 100% digital.
No Credit Building
Travel cheques provided no credit history benefits. Using modern financial products like credit cards or EMI cards helps build your CIBIL score, improving future loan eligibility.
Modern Alternatives for Indian Travellers
Here are some options:
Digital Payment Solutions
Credit cards now dominate international travel payments. They offer better exchange rates, fraud protection, and instant transaction alerts. Multi-currency forex cards allow loading multiple currencies and spending globally without carrying cash.
The Airtel Thanks app provides access to various financial services, including instant loans and EMI cards, making travel funding seamless.
Instant Funding Options
For immediate travel needs, modern financial products offer superior solutions:
- Personal Loans: Quick approval with minimal documentation, flexible tenures from 3-60 months, and competitive rates.
- Gold Loans: Leverage existing assets for instant travel funds with amounts up to ₹2 crore and doorstep service.
- EMI Cards: The Airtel Bajaj Finserv Insta EMI Card provides pre-approved credit limits up to ₹3 lakh, accepted at 1.5 lakh+ partner stores.
Cost Comparison Analysis
| Payment Method | Setup Cost | Usage Fees | Convenience | Credit Impact |
| Travel Cheque | 1-4% + exchange spread | 1.5-4% conversion | Low | None |
| Credit Card | ₹500-₹1,500 annual fee | 2-3% foreign transaction | High | Positive |
| Forex Card | ₹150-₹500 issuance | 1-2% reload fees | High | Neutral |
| Personal Loan | 2-5% processing | Interest rate only | Highest | Positive |
| Pro Tip: Instead of travel cheques, consider funding your trip through a personal loan if you need a large amount upfront. The interest might be offset by better exchange rates and rewards from using credit cards abroad. |
Real-World Scenario: Modern Travel Funding
Meet Priya, a Bangalore software engineer planning a ₹4 lakh Europe trip. Instead of travel cheques, she:
- Applied for a personal loan covering 60% of expenses (₹2.4 lakh).
- Used her existing credit card for the remaining costs.
- Earned 2% cashback on international transactions.
- Built her credit score through timely repayments.
- Enjoyed complete flexibility without pre-fixed denominations.
This approach gave Priya better rates, convenience, and financial benefits that travel cheques never offered.
Making Smart Travel Financial Decisions
Travel cheques belong to a bygone era. Today’s Indian travellers benefit from instant digital solutions, better rates, and flexible repayment options. Whether you need emergency funding through personal loans or want to build credit history while earning rewards, modern financial products offer comprehensive solutions.
For your next international trip, consider digital alternatives that provide security, convenience, and financial benefits. Personal loans with Airtel Finance can not only fund your travel but also contribute to your long-term financial health—something travel cheques never could achieve.
FAQs
1. Can I still buy travel cheques in India today?
Most Indian banks discontinued travel cheques by 2018. Very few financial institutions offer them now, and international acceptance is extremely limited, making them impractical for modern travel.
2. Are travel cheques cheaper than using credit cards abroad?
No, travel cheques involve higher upfront fees (1-4%) plus poor exchange rates. Credit cards offer better rates, rewards, and broader acceptance worldwide for Indian travellers.
3. What happens if I lose travel cheques during my trip?
While replaceable, the process takes 3-7 days, requiring original purchase receipts and serial numbers. Modern digital cards offer instant blocking and replacement, providing better emergency support.
4. Do travel cheques help improve my credit score?
Travel cheques have zero impact on your CIBIL score. Using credit cards responsibly or taking personal loans builds credit history, improving future loan eligibility significantly.
5. What’s the best modern alternative to travel cheques for international trips?
Personal loans, credit cards, and forex cards offer superior convenience, better rates, and additional benefits. These digital solutions provide instant access, rewards, and contribute to credit building.
