Rbi guidelines forex exchange


How much foreign exchange can be brought in while visiting India? A person coming into India from abroad can bring with him foreign exchange without any limit. Can one pay by cash full rupee equivalent of foreign exchange being purchased for travel abroad? Foreign exchange for travel abroad can be purchased from an authorized person against rupee payment in cash below Rs.

Is there any time-frame for a traveller who has returned to India to surrender foreign exchange? On return from a foreign trip, travellers are required to surrender unspent foreign exchange held in the form of currency notes and travellers cheques within days of return. Should foreign coins be surrendered to an Authorised Dealer on return from abroad? Is there any category of visit which requires prior approval from the Reserve Bank or the Government of India? Dance troupes, artistes, etc.

The Foreign Contribution Regulation Act, is administered and monitored by the Ministry of Home Affairs whose address is given below:. Banks authorised to deal in foreign exchange are permitted to issue International Debit Cards IDCs which can be used by a resident individual for drawing cash or making payment to a merchant establishment overseas during his visit abroad.

No prior permission from Reserve Bank is required for issue of such cards. However, the use of such cards is limited to permissible current account transactions and subject to the LRS limit. Resident individuals maintaining a foreign currency account with an Authorised Dealer in India or a bank abroad, as permissible under extant Foreign Exchange Regulations, are free to obtain International Credit Cards ICCs issued by overseas banks and other reputed agencies. The remittance for this purpose, should also be made directly to the card-issuing agency abroad, and not to a third party.

It is also clarified that the applicable credit limit will be the limit fixed by the card issuing banks. There is no monetary ceiling fixed by the RBI for remittances, if any, under this facility. The LRS limit shall not apply to the use of ICC for making payment by a person towards meeting expenses while such person is on a visit outside India. Taking personal jewellery out of India is as per the Baggage Rules, governed and administered by Customs Department, Government of India.

While no approval of the Reserve Bank is required in this case, approvals, if any, required from Customs Authorities may be obtained. A person resident in India is free to make any payment in Indian Rupees towards meeting expenses, on account of boarding, lodging and services related thereto or travel to and from and within India, of a person resident outside India, who is on a visit to India. Can residents purchase air tickets in India for their travel not touching India?

The resident individual seeking to make the remittance should furnish 6 Form A2 as at Annex for purchase of foreign exchange under LRS. It is mandatory to have PAN card to make remittances under the Scheme for capital account transactions. However, PAN card need not be insisted upon for remittances made towards permissible current account transactions up to USD 25, Investor, who has remitted funds under LRS can retain, reinvest the income earned on the investments.

At present, the resident individual is not required to repatriate the funds or income generated out of investments made under the Scheme. It would be the responsibility of the resident individual to ensure that the amount of loan granted by him is within the LRS limit and all the remittances made by the resident individual during a given financial year including the loan together have not exceeded the limit prescribed under LRS;.

Agricultural or plantation activities or in real estate business, or construction of farm houses, or. It would be the responsibility of the resident donor to ensure that the gift amount is within the LRS limit and all the remittances made by the donor during the financial year including the gift amount have not exceeded the limit prescribed under the LRS.

The Reserve Bank will not, generally, prescribe the documents which should be verified by the Authorised Persons while releasing foreign exchange for current account transactions. In this connection, attention of authorized persons is drawn to sub-section 5 of Section 10 of the FEMA, which provides that an authorised person shall require any person desiring to transact in foreign exchange to make such a declaration and to give such information as will reasonably satisfy him that the transaction will not involve and is not designed for the purpose of any contravention or evasion of the provisions of the FEMA or any rule, regulation, notification, direction or order issued there under.

Reserve Bank of India will not issue any instructions under the FEMA, regarding the procedure to be followed in respect of deduction of tax at source while allowing remittances to the non-residents. It shall be mandatory on the part of Authorised Dealers to comply with the requirement of the tax laws, as applicable. They should also comply with the Anti-Money Laundering Rules in force while allowing the facility.

The applicants should have maintained the bank account with the bank for a minimum period of one year prior to the remittances for capital account transactions. If the applicant seeking to make the remittances is a new customer of the bank, Authorised Dealers should carry out due diligence on the opening, operation and maintenance of the account. Further, the Authorised Dealers should obtain bank statement for the previous year from the applicant to satisfy themselves regarding the source of funds.

If such a bank statement is not available, copies of the latest Income Tax Assessment Order or Return filed by the applicant may be obtained. AD bank should not extend any kind of credit facilities to resident individuals to facilitate remittances for capital account transactions under the Scheme. Authorised Dealer may keep a record of the countries identified by FATF as non-co-operative countries and territories and accordingly update the list from time to time for necessary action by their branches handling the transactions under the Liberalised Remittance Scheme.

For this purpose, they may access the website www. The remittances made under this Scheme will be reported in the R-Return in the normal course. A number of foreign banks operating in India as well as Indian banks have been soliciting through advertisements foreign currency deposits from residents under LRS [on behalf of overseas mutual funds] or for placing at their overseas branches. These advertisements may not always contain appropriate disclosures to guide potential depositors giving rise to concerns from the point of view of protecting the interest of the resident individuals.

Further, marketing in India of schemes soliciting foreign currency deposits by foreign entities, not having operational presence in India, also raises supervisory concerns. Skip to main content. Search the Website Search. Operational instructions to Authorised Persons 3. During the period from February 4, till date, the LRS limit has been revised as under: The permissible capital account transactions by an individual under LRS are: Private visits For private visits abroad, other than to Nepal and Bhutan, any resident individual can obtain foreign exchange up to an aggregate amount of USD 2,50,, from an Authorised Dealer or FFMC, in any one financial year, irrespective of the number of visits undertaken during the year.