I know of some people that are US citizens but do not want to obtain OCI cards because they think it could risk their ability to obtain government jobs or others that require security clearances. This is because the background check questionnaires usually ask if you possess a passport or "other travel document" from another country, and many people think they have to answer yes if they have an OCI. Plus poorly trained investigators might automatically (and wildly incorrectly) assume that OCI means the person has "dual citizenship".

In my view, an OCI card is NOT a travel document, since you CANNOT use it to travel internationally. It only has utility as a long-term entry visa to India, but only when accompanied by an actual passport. Thus I think OCI holders can truthfully answer no to the question about having another travel document.

But I've never seen this written down anywhere or officially stated or voiced as a legal opinion that could be referenced. Does anyone know if it is? And is my interpretation appropriate?

I can't tell you how mad I am at the Indian govt for coming up with such a horrible name for what is nothing more than a long-term visa and causing unnecessary grief to so many.