Simple Forex Rules for Indians To Travel Abroad
Planning to travel abroad but not sure about how much foreign Currency one can carry and what are the documents required, in this post you will learn about the rules of forex for an Indian who is travelling abroad.
What is the eligibility required to buy Foreign exchange for an Indian?
Foreign currency will be released to a person who stays more than 182 days in India and the person will be considered as resident of India, the purpose of travel is required. If it is under private visit or business visit different documents will be required respective to the purpose of travel; if you are travelling for study purpose, emigration, employment the forex can be sold only when you are travelling for the first time that is initially.
Can I buy foreign currency before my travel date?
Yes, irrespective of the purpose of travel one can buy forex in advance of your trip that is before 180 days however you should have all the required documents to process the transaction.
What is the payment mode available for foreign exchange?
Foreign exchange can be purchased in cash up to 50000INR. If the amount is more than or equivalent to 50000INR then the entire payment should be made through Demand Draft/RTGS/NEFT/Crossed Cheque/Banker’s Cheque/Debit Card but the limit in cash is only 50000INR.
How much Foreign Currency can be purchased by an Indian?
According to the scheme issued by the Reserve Bank of India an Indian resident can carry up to USD3000 in cash (per trip) balance amount they can carry in the form of Traveller's cheque or in Forex Cards. Maximum they can carry up to USD250000 in Forex Card/ FC Demand Draft/ Remittance per financial year. This limit applies to all the countries except few like Libya, Iraq, Nepal, Bhutan, Russian Federation.
How much Indian currency can a one carry abroad?
Resident of India is allowed to carry 25000INR abroad and can bring back the Indian Currency not exceeding the limit of 25000INR while returning to India from abroad except Nepal and Bhutan.
How much Foreign Currency can one bring back to India from Abroad
An Indian can carry Foreign Currency to India without any limit although, if the foreign exchange bought in the form of a currency note, traveller’s cheque or banknotes exceeds or equivalent to $10000 and the value of foreign currency exceeds or equivalent to $5000 it should be proclaimed in the Currency Declaration form (CDF) by the Customs Authorities at the airport on arrival to India.
After the return from Abroad can one keep the unused Foreign Currency
After the return from the foreign trip, one has to surrender the unused foreign exchange held in the form of traveller’s cheque and notes within 180 days. However, Indians are allowed to hold $2000 or equivalent in the form of a currency note or traveller’s cheque with them for the future use.
Documents Required for buying Foreign Exchange
The documents depend upon the purpose you are travelling if you are travelling on a private visit then your Passport, Pan card, Visa (if applicable) and tickets are mandatory. If you are travelling in a business visit then along with the above documents your company documents are required; travelling for education purpose University offer letter is required along with the above-mentioned documents and the currency will be released only in the initial stage that is on your first trip to abroad.
Best way to buy Foreign Exchange
There are many dealers available to exchange the currency, like Banks, Money Exchange, Foreign Exchange and Airport Counters. The rates offered by the airport counters are unlikely to favour you as they have high margin compared to other vendors and the rate offered by banks are pretty much high and there will be a lot of paperwork and you have to spare a lot of time in the bank to get the exchange done and the service charge depends upon the amount you exchange nobody wants to stand in a long queue in the bank to exchange the currency. It is better to deal with online Foreign Exchange, they have comparatively less margin compared to the banks and airports, always be prepared in advance and get your currency exchanged from Foreign Currency Exchange company which are authorised by RBI as they are trustworthy and provides the best rate.