[The following article offers details about how many days in advance one can purchase foreign currencies,how much foreign currency and Indian currency one can carry with him for traveling different countries,how much foreign currency can be purchased on cash payment, the purpose for which foreign currency can be purchased,Usage of cards on foreign travel, the limit for Indian currency that can be brought into India from abroad, the limit for foreign currency that can be brought in while visiting India, disposal of unspent foreign exchange on returning back to India from foreign tour,Indian currency purchase limit at duty-free shops etc.]
Under the revised FEMA rules 2000, the limit of for foreign travel is subsumed under LRS scheme. Hence with effect from 26.05.2015, any resident of India can obtain foreign exchange up to an aggregate amount of USD 250000 in a financial year (from 1st April to 31st March) for travelling abroad.
The travellers going abroad for business and private visits may purchase foreign currency and currency from Authorised dealers like AD Category banks and Full-Fledged Money Changers (FFMCs). The resident Indians can buy foreign exchange maximum 180 days in advance of travelling. The rules for carrying foreign exchange abroad are revised with effect from May 26, 2015. Accordingly, the detail of the foreign currency notes and coins a traveller can carry on visit to foreign countries are furnished below.
- Travellers proceeding for Haj/ Umrah pilgrimage may carry full amount of entitlement (USD 250,000) or up to the cash limit as specified by the Haj Committee of India, in currency and coins.
- Travellers going to all countries other than proceeding to Iraq, Libya, Iran, Russian Federation and other Republic of commonwealth of Independent States are allowed to purchase foreign currency notes / coins only up to USD 3000 per visit. Balance amount can be carried in the form of store value cards, travelers’ cheque, Demand Drafts, Pay order, Debit Card, Credit Card etc.
- Travellers going to proceeding to Iraq, Libya can carry foreign exchange in the form of currency notes up to USD 5000 or its equivalent per visit.
- Travellers going to proceeding to Iran, Russian Federation and other Republic of the commonwealth of Independent States can draw and carry entire foreign exchange (not exceeding USD 250,000) in the form of Currencies and Coins.
- The Indian travelers travelling to Nepal and Bhutan were hither to allowed to carry Indian currency notes of Rs.100 denominations without any limit. However, RBI vide its circular dated March 20, 2019 permitted an individual travelling from India to Nepal or Bhutan to carry Reserve Bank of India currency notes in Mahatma Gandhi (New) Series of denominations ₹200/- and/or ₹500/- subject to a total limit of ₹25,000/-. Instructions regarding travellers carrying currency notes for any amount in denominations up to ₹100/- shall continue as hitherto.According to a report (2019), Nepal’s central bank has banned the use of Indian currency notes of Rs 2,000, Rs 500 and Rs 200 denominations. Therefore it is advisible to carry smaller denomination notes while traveliing to that country.
- The air tickets purchased in India in Indian Rupees for travel to any third country would be a part of the traveller’s overall entitlement of USD 250000/-.
- The person travelling can purchase foreign exchange value up to Rs.50000.00 by cash.
If the total value of foreign exchange required to be purchase is exceeding Rs.50000/- then entire foreign exchange should be purchased through crossed cheque, draft, banker’s Cheque etc.
The detail of the trips where one can draw foreign exchange up to US Dollars 250000/- is furnished below.
In addition to the above purposes, individuals can avail of foreign exchange facility within the LRS limit of USD 2,50,000 towards gift or donation, maintenance of close relatives abroad and any other current account transaction which is not covered under the definition of current account in FEMA 1999.
Current account transactions: Under FEMA act all transactions involving foreign exchange have been classified either as capital or current account transactions. All transactions undertaken by a resident that do not alter his / her assets or liabilities, including contingent liabilities, outside India are current account transactions. Spending on foreign travel is a current account transaction under LRS scheme. To know more click LRS
Usage of cards on foreign travel
The travellers going abroad are permitted to hold International Credit Card (ICC) and International Debit Card (IDC). AD banks can also issue Store Value Card, Charge Card, and Smart Card to residents traveling on private/business visit abroad for making payments at overseas merchant establishments and also for drawing cash from ATM terminals. However, the use of such cards is limited to permissible current account transactions and subject to the LRS limit of USD 250000/-. The use of ICCs/IDCs is NOT permitted for prohibited transactions specified in Schedule 1 of FEM (CAT) Amendment Rules 2015, like the purchase of lottery tickets, banned magazines etc. The use of cards for payment in foreign exchange in Nepal and Bhutan is also not permitted.
The limit for Indian currency that can be brought into India from abroad
The resident Indians while returning from temporary foreign visits (other than Nepal and Bhutan), can bring back Indian currency notes up to Rs.25000/-. The Non-Resident Indians or foreigners (not being a citizen of Pakistan and Bangladesh) entering India through an airport can bring an amount up to Indian Rupees 25,000/-. The travellers who are residents of India, who had gone to Pakistan or Bangladesh on a temporary visit, may bring back Indian Rupees up to Rs.10000/- per person.
The limit for foreign currency that can be brought in while visiting India
There is no upper limit to foreign currencies that can be brought to India while visiting India. However, in case of the aggregate value of the foreign exchange in the form of currency notes, bank notes or travellers cheques brought are in excess of USD 10,000 or its equivalent and/or the value of foreign currency alone exceeds USD 5,000 or its equivalent, it should be declared to the Customs Authorities at the Airport in the Currency Declaration Form (CDF), on arrival in India.
Disposal of unspent foreign exchange on returning back to India from foreign tour
The unspent foreign exchange held in the form of currency notes and travelers cheques shall be surrendered to AD within 180 days of return. However, after return from the tour the resident is allowed to keep foreign exchange up to USD 2,000, in the form of foreign currency notes or TCs for future use or credit to their RFC (Domestic)] Accounts. There is no restriction for residents to hold foreign coins without any limit.
Indian currency purchase limit at duty-free shops
The Central Board of Excise & Customs has amended the rules for purchase of goods from duty-free shops. The Government of India communication dated July 8, 2016, states that the Indian currency limit is increased purchase limit from Rs.5000/- to Rs.25000/- at duty-free shops. The above revision is in order to avoid paying excessive exchange fees on foreign currencies by travellers to and from India. It means that the travellers can use Rs.25000/- in Indian currency and rest of the payment can be made in foreign currency for their purchases.
Duty-free shops (stores) can be found in the international zones of international airports, (Ex; Delhi International Airport, Kempegowda International Airport, Bengaluru etc. in India), Seaports, and several borders crossings (Ex: between USA, Canada, and Mexico). The travellers are allowed to purchase duty-free on board airplanes and passenger ships. The goods sold from duty-free shops to travellers who will carry them out of the country are exempt from local or national taxes/duties. However, duty-free depending upon the location of duty-free shops.
1. Revised baggage rules allowing duty-free import of chocolates, apparel, toys etc.
2. Foreign Exchange Remittance limit available to residents
Disclaimer: This article is written and updated from time to time on the basis of RBI circulars or FEMA rules and amendments taken place. We make every effort to stay as accurate and updated as possible.However, for further validation you may refer RBI circular on ‘Liberalised Remittance Scheme (LRS) for Resident Individuals’. The author of this article is not responsible for the mistakes, errors, ambiguity, inconsistency, discrepancy, doubts or quality of information provided in this article. The liabilities or claims of any nature on account of information provided in this post for whatsoever cause are not recognized.
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nice n very valuable information
glad to learn about ur vivid experience as ex-cm iobian.
nice to go through ur article in the banking school.co.in web site. found quite informative nvery useful.
Hello,I am also an ex iobian retired as sr.manager iob cco- ahmedabad ,remained active as AGS/JT.GEN.SEC. in ioboa/aiboc guajrat state,for more than THREE decades.At present i am on usa visit for six months at my daughter’s place in n.j.hence i found ur article more useful.
i hope to be linked with ur web.
with new years greetings
& kind regards.
Thanks for the nice complements showered, dear Naik sir.Now I recollect n got refreshed about our working in Gujarat as specially ur working in Baroda n Itola branches.I do cherish those good old days.By the way after retirement where have u been settled? i suppose in Mumbai.I do appreciate ur efforts in rendering good guidance to all of us n our new young colleagues too through ur well organized web site.My hearty best wishes to u ,sir,to continue the best efforts to keep ur web-site with the latest updates.
with hearty greetings for the NEW YEAR.
Shri. Rohit Bhatt sir, Thank you very much for your special greetings. Presently I am settled in Bengaluru. Of course, regularly I visit Mumbai for maintenance purpose of my flat.
It is really nice of you to remember me. You have done wonderful things for the cause of bank officers during your stewardship. I can’t begin to count the times; I can only say your thoughtfulness and understanding made many of our colleagues’ life nicer.
Thanks a lot once again.
Nice and illustrative for all officials and new recruits to follow from a rich experienced professional banker.
Good Information for going other countries first time.
Travellers going to proceeding to Iran, Russian Federation and other Republic of the commonwealth of Independent States can draw and carry entire foreign exchange (not exceeding USD 250,000) in the form of Currencies and Coins.
Can I have any Notification from RBI or Custom regarding the limit on cash to be carried to Iran on business travelling ? I understood from above mentioned point that one can carry any amount up to USD 2,50,000/- during the financial year either in single trip or multiple trip
Read the following circular of RBI: https://m.rbi.org.in/Scripts/FAQView.aspx?Id=66
Hello sir, thanks for the article. I wanted to ask if I travel abroad and take the full amount, i.e. USD 250,000 with me, will I be allowed to wire transfer money from India to another country in the same financial year?
Individuals can avail of foreign exchange facility for the travel purposes within the LRS limit of USD 2,50,000 on financial year basis. No additional foreign currency is available if the funds up to USD 250000 already utilised.