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How much money you can carry abroad?

How much money you can carry abroad?


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) are also permitted to release exchange for business and private visits. 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 Reserve Bank of India has lifted on 22.01.2015 the ban on individuals carrying Indian currency notes of higher denominations to Nepal and Bhutan. Earlier Indian travelers were allowed to carry Indian currency without any limit in the denomination of only up to Rs.100/-.Now Indian travelers to Nepal and Bhutan can carry Indian currency notes in denominations of Rs.500 and/or Rs.1000, provided the maximum value of these currency notes should not exceed a limit of Rs.25000/-. The ban on carrying higher denomination of Indian currency notes has been relaxed to mitigate the hardship faced by individuals travelling to Nepal and Bhutan from India.
  • 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.
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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.

Click here to know: Revised baggage rules allowing duty-free import of chocolates, apparel, toys etc.

Disclaimer: This post is a sketchy write up for general information and is not necessarily meticulous in respect of RBI guidelines or FEMA rules and amendments taken place from time to time. Therefore, the contents of this article should not be construed as a professional advice under any circumstances. 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.

 

 

(6) Comments

  1. ROHIT BHATT

    Resp.Naik sir, 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.

  2. ROHIT BHATT

    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. Rohit Bhatt

  3. Surendra NaikSurendra Naik - Post author

    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.

  4. B.Srinivasan

    Nice and illustrative for all officials and new recruits to follow from a rich experienced professional banker.

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