RBI issues FAQs on Forex facilities and 'Liberalised Remittance Scheme' for residents
July 11, 2015
Are you planning to travel abroad and you are not sure how much foreign exchange can you buy when travelling on private visits to country outside India? You are not sure as how much foreign currency can be carried in cash for travelling abroad? You want to know how much Indian currency can be brought in while coming into India?
Now RBI has released FAQs in respect of Forex facilities including Liberalized Remittance Scheme for general guidance and to answer these type of queries. Certain FAQs are highlighted as under:
Q. How much foreign exchange can one buy when traveling abroad on private visits to a country outside India?
For private visits abroad, other than to Nepal and Bhutan, any resident can obtain foreign exchange upto an aggregate amount of USD 2,50,000, from an Authorised Dealer or Full-Fledged Money Changers (FFMCs), in any one financial year, irrespective of the number of visits undertaken during the year.
This limit has been subsumed under the Liberalised Remittance Scheme w.e.f. May 26, 2015. If an individual has already remitted any amount under the Liberalised Remittance Scheme in a financial year, then the applicable limit for travelling purpose for such individual would be reduced from USD 250,000 by the amount so remitted.
Q. How much foreign currency can be carried in cash for travel abroad?
i. For travelers proceeding to Iraq and Libya, the limit is upto USD 5000
ii. For travelers proceeding to Islamic republic, the limit is upto USD 25000
iii. For travellers proceeding for Haj/Umrah pilgrimage, the limit of forex is full amount of Basic Travel Quota entitlement (USD 250, 000) in cash as specified by the Haj Committee of India
iv. In case of travel to all countries other than above, the limit is upto USD 3000 in currency/coins and balance in form of travellers cheque or banker’s draft.
Q. How much Indian currency can be brought in while coming into India?
i. If returning from Nepal/Bhutan, the limit of Indian currency which can be brought into is upto USD 25,000 in Denomination not exceeding of Rs. 100
ii. Any person resident in India who had gone to Pakistan and/or Bangladesh on a temporary visit, may bring into India at the time of his return, currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs. 10,000 per person
iii. Any person resident outside India, not being a citizen of Pakistan and Bangladesh and also not a traveller coming from and going to Pakistan and Bangladesh, and visiting India may bring into India currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs. 25,000 while entering only through an airport.
Q. What is the Liberalised Remittance Scheme (LRS) of USD 2,50,000 ?
Under the LRS, all resident individuals, including minors, are allowed to freely remit upto USD 2,50,000 in financial year for any permissible current or capital account transaction or a combination of both.
Further, resident individuals can avail of foreign exchange facility for the purposes mentioned in Para 1 of Schedule III of FEM (CAT) Amendment Rules 2015, within the limit of USD 2,50,000 only. If an individual has remitted any amount under LRS in a financial year, then the applicable limit for such individual would be reduced from USD 250,000 by the amount so remitted. In case of remitter being a minor, the LRS declaration form must be countersigned by the minor’s natural guardian.
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