UTI Bank to launch multi-currency prepaid travel card

UTI Bank, following an encouraging response to its dollar pre-paid travel card, is set to launch a multi-currency (euro and sterling variants) prepaid travel card.

Hemant Kaul, senior vice-president, retail banking, said, the bank has sold around six million dollar cards since its launch in September 2003 and with the new variants it plans to sell around 3-4 million units a month.

The bank will charge Rs 150 for the card, which is valid for two years. The card can be loaded with a minimum of value of $250, ¤200 and £150, while the maximum an individual can load for leisure travel is $10,000 or equivalent in euro and pound.

The maximum a corporate can load is $25,000 or equivalent in euro and pound (¤20,000 and £13,500). The bank will charge a reload fee of Rs 100.

The usage of travel cards is expected to rise as it offers convenience to outbound travellers who can buy goods and services across the globe by just swiping it, Kaul said.

The bank's main target group will be its existing dollar card customers, corporates students and leisure travellers, he added.

State Bank of India's Vishwa Yatra Card, travelex world wide money and Citibank's travel card are currently available in US dollars card activation. Banks charge a nominal fee ranging from Rs 100 to Rs 175 for the first issue and much less for reloads.

ICICI Bank, HDFC Bank and IDBI Bank are also planning to launch multicurrency travel cards, said sources. Of the total international payment instruments cash and traveller cheques accounts for 80 per cent of the spend abroad while card payment account for 20 per cent.