Under the Foreign Exchange Management Act, Indian residents have the freedom to buy and sell foreign exchange for a wide range of transactions. The permissible capital account transactions include investing in foreign securities and transfer of immovable property outside India. On the other hand, the current account transactions, which do not alter a person's assets or liabilities outside India, do not require permission from RBI. However, there are some ceilings that have to be adhered to.
How much foreign exchange can be purchased?
The amount of forex that can be purchased is governed by the nature of foreign travel. For business trips: Up to $25,000, but foreign exchange release is not admissible for Nepal and Bhutan. For leisure tourists: Up to $10,000 in a financial year. For higher studies: Up to $1,00,000 a year or the college fee, whichever is higher. For medical treatment: Up to $1,00,000. You only need to furnish an estimate from a doctor if you need a higher limit. In addition, $25,000 is earmarked as maintenance expense of the patient or his/her attendant. For employees working abroad/emigrants: Up to $1,00,000. One can buy forex for these purposes by submitting a request-cumdeclaration form and Form A2. The purchased foreign currency has to be used within 180 days. If it isn't used, it has be surrendered to the authorised dealers.
Is there a limit to the foreign currency that can be carried as notes and coins?
Travellers can purchase foreign currency notes/coins only up to $2,000 or its equivalent amount. The balance can be bought in the form of traveller's cheques or banker's drafts. However, the limit for those visiting Iraq and Libya is $5,000, while travellers to Iran and the Russian Federation can draw the entire eligible amount as notes.
Can one retain foreign exchange after returning from a trip abroad?
Travellers are allowed to retain unused foreign exchange up to $2,000 in the form of notes or traveller's cheques (there is no limit to the amount of foreign coins you can hold) for future use. You have to surrender the remaining amount within 180 days of returning from a foreign visit. Alternatively, you can open a resident foreign currency (domestic) bank account and credit the unspent amount.
How much Indian currency, in cash, can one take out of the country per visit?
One ought to carry emergency cash while travelling abroad, but RBI doesn't allow you to carry currency notes over Rs 5,000 per person while on a foreign trip. If you are visiting Nepal and Bhutan, currency notes of denominations only up to Rs 100 are accepted.
