The legal framework for administration of foreign exchange transactions in India is provided by the Foreign Exchange Management Act, Under the Foreign Exchange Management Act, FEMA , which came into force with effect from June 1, , all transactions involving foreign exchange have been classified either as capital or current account transactions.
These FAQs attempt to put in place the common queries that users have on the subject in easy to understand language. Who are authorized by the Reserve Bank to sell foreign exchange for travel purposes? How much foreign currency can be carried in cash for travel abroad? Exceptions to this are a travellers proceeding to Iraq and Libya who can draw foreign exchange in the form of foreign currency notes and coins not exceeding USD or its equivalent per visit; b travellers proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States who can draw entire foreign exchange up-to USD , in the form of foreign currency notes or coins.
How much Indian currency can be brought in while coming into India? A resident of India, who has gone out of India on a temporary visit may bring into India at the time of his return from any place outside India other than Nepal and Bhutan , currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.
Any person resident outside India, not being a citizen of Pakistan and Bangladesh and also not a traveller coming from and going to Pakistan and Bangladesh, and visiting India may bring into India currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.
How much foreign exchange can be brought in while visiting India? A person coming into India from abroad can bring with him foreign exchange without any limit.
Can one pay by cash full rupee equivalent of foreign exchange being purchased for travel abroad? Foreign exchange for travel abroad can be purchased from an authorized person against rupee payment in cash below Rs. Is there any time-frame for a traveller who has returned to India to surrender foreign exchange? On return from a foreign trip, travellers are required to surrender unspent foreign exchange held in the form of currency notes and travellers cheques within days of return.
Should foreign coins be surrendered to an Authorised Dealer on return from abroad? Is there any category of visit which requires prior approval from the Reserve Bank or the Government of India? Dance troupes, artistes, etc. The Foreign Contribution Regulation Act, is administered and monitored by the Ministry of Home Affairs whose address is given below:. Banks authorised to deal in foreign exchange are permitted to issue International Debit Cards IDCs which can be used by a resident individual for drawing cash or making payment to a merchant establishment overseas during his visit abroad.
No prior permission from Reserve Bank is required for issue of such cards. However, the use of such cards is limited to permissible current account transactions and subject to the LRS limit. Resident individuals maintaining a foreign currency account with an Authorised Dealer in India or a bank abroad, as permissible under extant Foreign Exchange Regulations, are free to obtain International Credit Cards ICCs issued by overseas banks and other reputed agencies.
The remittance for this purpose, should also be made directly to the card-issuing agency abroad, and not to a third party. It is also clarified that the applicable credit limit will be the limit fixed by the card issuing banks.
There is no monetary ceiling fixed by the RBI for remittances, if any, under this facility. The LRS limit shall not apply to the use of ICC for making payment by a person towards meeting expenses while such person is on a visit outside India.
Taking personal jewellery out of India is as per the Baggage Rules, governed and administered by Customs Department, Government of India. While no approval of the Reserve Bank is required in this case, approvals, if any, required from Customs Authorities may be obtained. A person resident in India is free to make any payment in Indian Rupees towards meeting expenses, on account of boarding, lodging and services related thereto or travel to and from and within India, of a person resident outside India, who is on a visit to India.
Can residents purchase air tickets in India for their travel not touching India? Residents may book their tickets in India for their visit to any third country.
In terms of sub-section 4, of Section 6 of the Foreign Exchange Management Act, , a person resident in India is free to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India.
Skip to main content. Search the Website Search. Frequently Asked Questions Miscellaneous forex facilities As on August 01, The legal framework for administration of foreign exchange transactions in India is provided by the Foreign Exchange Management Act, Who is an Authorized Dealer AD?
How much jewellery can be carried while going abroad? Can a resident extend local hospitality to a non-resident? Can a person resident in India hold assets outside India? The residents can hold foreign coins without any limit. The Foreign Contribution Regulation Act, is administered and monitored by the Ministry of Home Affairs whose address is given below: Use of these instruments for payment in foreign exchange in Nepal and Bhutan is not permitted. Further, a resident individual can also acquire property and other assets overseas under LRS.
As on August 01, The legal framework for administration of foreign exchange transactions in India is provided by the Foreign Exchange Management Act,More...