Foreign Exchange - Frequently asked questions . . .

Foreign exchange rules in India for Tourists, Businessmen, Students and Immigrants . . .

Foreign exchange rules in India have been liberalized now, I remember the time when I moved overseas in 1970, the government of India allowed travelers foreign exchange of US$ 8 only! India now has no shortage of foreign exchange and rules have changed considerably. Here is some information in a question- answer format that should be helpful to all categories of travelers. Whether you are traveling to India for a holiday, leaving India as a student to study abroad or going overseas for employment, information provided here may answer some of your questions regarding acquiring foreign exchange in India.

Where and how to exchange money in India

Q. Where can I exchange my Indian Rupees to US dollars? A. Any authorized bank or authorized money changers. Money changers normally offer a slightly favorable exchange rate. Q. Can I pay for the purchase of foreign exchange by way of cash in India Rupees? A. If the exchange you are purchasing is up to Rupees 50,000, cash payment in Indian Rupees can be made. However, in cases where the purchase amount will exceed Rupees 50,000 then the entire amount will have to be paid by way of a cheques (crossed, not bearer cheques) or bank draft.

Take Cash or Travelers Cheques?

When purchasing foreign currency in India, travelers are allowed to take up to US$ 2000 in cash and the rest has to be taken in the form of either traveler’s cheques or a bank draft. There are some exceptions to this rule depending on the country you are traveling to: Up to US$ 5000 or its equivalent in cash is allowed for travelers going to: • Iraq • Libya Up to US$ 10,000 or its equivalent in cash o is allowed for travelers going to: • Islamic Republic of Iran • Russian Federation • Other Republics of Commonwealth of Independent States

How much foreign exchange does Indian allow for business trip?

Q. I am going to UK for a business trip to promote my business. How much exchange can I get? A. Authorized dealers are permitted to release foreign exchange equivalent to a maximum of US$ 25,000 for a business trip. If you need more, then RBI permission is required. Q. I am going to Nepal for a business trip. How much foreign exchange can I get? A. You can’t get any foreign exchange for trips to Nepal.

Foreign exchange allowed for study abroad

Q. I am planning to go abroad for study. How much foreign exchange can I get? A. For each academic year, authorized dealers are allowed to release up to US$ 100,000. However, if more is required, then you need an estimate of the amount required from the education institute you are joining. Students can also receive from relatives up to US$ 100,000 to help them meet their monetary requirements while studying abroad.

Taking Indian Rupees to Indian or Out of India

Q. I have some Indian Rupees with me from my previous trip to India. Can I take this money back to India on my next trip legally? A. Legally, up to Rupees 5000 can be taken into India in such cases from any country other than Nepal or Bhutan. Q. How much cash in Indian currency can be taken out of India? A. Up to Rupees 5000 is allowed.

Foreign exchange in India for tourism

Q. How much foreign exchange can I get for a tourism trip abroad without RBI permission? A. Up to US$ 10,000 is allowed per financial year without RBI approval from authorized dealers. This does not apply if you are travelling to Nepal or Bhutan as no foreign exchange is given for these countries.

Immigration related foreign exchange

Q. I need to show a lump sum of money in my account to get immigration in Canada. How much money can I send from Indian for this purpose? A. None! No amount of foreign exchange is allowed to be remitted outside India earning points for immigration visas. Q. I have a job offered to me abroad, how much foreign exchange; will I be allowed to take? A. Those going abroad for employment purposes are allowed up to US$ 100,000.