Indigo flight heading to Dubai refuses to accept Indian currency from passenger trying to buy food onboard

Indigo flight heading to Dubai refuses to accept Indian currency from passenger trying to buy food onboard

Indigo released a statement and said that they were breaking no rules in refusing to accept the Indian currency.

Advertisement
BusinessToday.In
  • Nov 23, 2017,
  • Updated Dec 19, 2017 3:26 PM IST

A couple of days after a passenger was manhandled at the Delhi airport by Indigo staffers, the airline has found itself in the midst of another row. This time a passenger - a businessman from Delhi - lodged a complaint with the Sarojini Nagar police station that Indigo did not accept the Indian currency he offered for his breakfast on flight. The passenger, Pramod Kumar Jain, complained that the airline's refusal to accept Indian Rupee notes "dishonoured" the national currency. The incident took place on October 10 and he was flying from Bengaluru to Dubai.

Advertisement

In the morning of October 10, Jain boarded the 6E95 at 7:20 am and decided to order breakfast. Jain also submitted a copy of the IndiGo inflight menu which lists prices of food items in US dollars. Its last page specifically mentions that Indigo accepts USD and the local currency of the country of origin and destination of the flight.

Jain further alleged that the crew had received directions to accept only foreign currency and that another passenger also faced a similar situation.

Indigo released a statement and said that they were breaking no rules in refusing to accept the Indian currency. They said that it is clearly mentioned in the onboard sales menu, and the policy is in line with the Foreign Exchange Management Act (FEMA). Indigo further said it has asked the Reserve Bank of India to allow higher onboard sales in rupees (above Rs. 25,000) and is actively discussing with the authorities in this regard.

Advertisement

When Business Today got in touch with officials from Indigo, they reiterated that they do not accept Indian currency for onboard sales in accordance with FEMA regulation 3. They also said, "We have filed a request for carrying onboard sales in INR (above 25,000) with Reserve Bank of India on February 26 2014 and June 05, 2014."

In a letter that Indigo shared with Business Today, the airline wrote to RBI that in order to carry on their onboard sales, the airline would need to import currency in amounts higher than the amount prescribed in FEMA regulations. The letter also mentions that the use of the term 'person' as per the regulations include a 'company' and that there is a lack of clarity whether the prescribed limit of import and export of Indian currency would apply 'per flight' of Indigo.  

Advertisement

Indigo has requested the RBI to increase the limit of import of Indian currency to Rs 1,50,000. In fact, the limit of Rs 25,000 is a revised one. Before that, the limit was Rs 10,000 that was eventually increased in an amendment of the FEMA regulations.

Business Today spoke to officials of Air Asia and SpiceJet as well, both of who mentioned that Indian currency is accepted in their international flights.

 

A couple of days after a passenger was manhandled at the Delhi airport by Indigo staffers, the airline has found itself in the midst of another row. This time a passenger - a businessman from Delhi - lodged a complaint with the Sarojini Nagar police station that Indigo did not accept the Indian currency he offered for his breakfast on flight. The passenger, Pramod Kumar Jain, complained that the airline's refusal to accept Indian Rupee notes "dishonoured" the national currency. The incident took place on October 10 and he was flying from Bengaluru to Dubai.

Advertisement

In the morning of October 10, Jain boarded the 6E95 at 7:20 am and decided to order breakfast. Jain also submitted a copy of the IndiGo inflight menu which lists prices of food items in US dollars. Its last page specifically mentions that Indigo accepts USD and the local currency of the country of origin and destination of the flight.

Jain further alleged that the crew had received directions to accept only foreign currency and that another passenger also faced a similar situation.

Indigo released a statement and said that they were breaking no rules in refusing to accept the Indian currency. They said that it is clearly mentioned in the onboard sales menu, and the policy is in line with the Foreign Exchange Management Act (FEMA). Indigo further said it has asked the Reserve Bank of India to allow higher onboard sales in rupees (above Rs. 25,000) and is actively discussing with the authorities in this regard.

Advertisement

When Business Today got in touch with officials from Indigo, they reiterated that they do not accept Indian currency for onboard sales in accordance with FEMA regulation 3. They also said, "We have filed a request for carrying onboard sales in INR (above 25,000) with Reserve Bank of India on February 26 2014 and June 05, 2014."

In a letter that Indigo shared with Business Today, the airline wrote to RBI that in order to carry on their onboard sales, the airline would need to import currency in amounts higher than the amount prescribed in FEMA regulations. The letter also mentions that the use of the term 'person' as per the regulations include a 'company' and that there is a lack of clarity whether the prescribed limit of import and export of Indian currency would apply 'per flight' of Indigo.  

Advertisement

Indigo has requested the RBI to increase the limit of import of Indian currency to Rs 1,50,000. In fact, the limit of Rs 25,000 is a revised one. Before that, the limit was Rs 10,000 that was eventually increased in an amendment of the FEMA regulations.

Business Today spoke to officials of Air Asia and SpiceJet as well, both of who mentioned that Indian currency is accepted in their international flights.

 

Read more!
Advertisement