Foreign Exchange
- Where to buy Foreign Currency?
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Foreign Currency can be purchased from any Authorized Dealer. Besides authorized dealers, full-fledged money changers (FFMC’s) are also permitted to release foreign exchange for business and private visits. It is always better to rely on such experienced players for exchanging currencies.
- How much foreign currency can be carried in cash while travelling abroad?
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Resident Indians going abroad from India can carry foreign currency notes / coins only, up to USD 3000 per visit. Balance amount can be carried in the form of traveler’s cheque, travel cards or banker’s draft. While travelling abroad, a resident Indian can carry Indian currency in cash up to ₹25,000.
- What mode of payment are available against currency purchase?
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A resident Indian can purchase foreign currency in India by paying cash to the respective bank or money changer only if the total transaction value is less than Rs.50,000/- including GST and transaction charges. If the total value of the transaction exceeds Rs.50,000/-, then as per RBI rules only online mode is accepted.
- What are the mandatory documents required for Foreign Currency purchase from an Authorized Dealer?
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- A valid Passport.
- Pan Card
- A2 Form.
- Is there any time limit to surrender foreign currency for a tourist returned to India?
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Travelers returning from foreign trips has to surrender the unspent for foreign currency notes within 180 days of return. On return from a foreign travel, travelers are required to surrender unspent foreign exchange held in the form of currency notes within 180 days of return. However, they are free to retain foreign exchange up to USD 2,000, in the form of foreign currency notes for future use or credit to their Resident Foreign Currency (Domestic) [RFC (Domestic)] Accounts.
- What is CDF and when it is required?
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A person can bring foreign currency without any limit from abroad. However, if the total value of the foreign currency in the form of travellers cheques or currency notes being brought from abroad exceeds USD 10,000 or its equivalent and/or the value of only the foreign currency notes exceeds USD 5,000 or its equivalent, should be informed to the Customs Authorities at the Airport through Currency Declaration Form (CDF), on the arrival.
- How Are Currency Exchange Rates Determined?
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Foreign Exchange Rate is the amount of home currency that is to be paid in order to get a unit of foreign currency. Relative purchasing price of the 2 currencies decides the foreign exchange rate. Hence it clearly conveys that demand and supply determines the exchange rate.
- Is Pan Card is mandatory for currency purchase from an authorized dealer?
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Yes. It is mandatory to have Pan Card for currency purchase from Banks or other authorized dealers.
- How much foreign currency can be bought by paying in Cash?
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One can buy foreign currency up to 50,000 INR by paying cash. Beyond this amount, payment must be carried out by online banking (NEFT/RTGS/..) or by Cheque.
- Who are authorized by the Reserve Bank of India to sell foreign currency to customers?
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Reserve Bank of India authorizes or empowers AD Category-I banks and AD Category II dealers to buy/sell currency as per customer requirements. FFMCs or Full-Fledged Money Changers can also release exchange for business and private visits.