News
RBI Clarification on carrying of INR 10,000 by Non-residents and Residents

 

RBI Clarification on carrying of INR 10,000 by Non-residents and Residents

In terms of instructions issued vide A.P. (Dir Series) circular No.45 dated September 16, 2013, the Reserve Bank of India had facilitated encashment of rupees into convertible currencies even beyond Immigration/Customs desk.  This instruction has been misreported in certain sections of the media as a new restriction imposed by the Reserve Bank.  The Reserve Bank issues the following clarifications in this regard:

(1) A non-resident is currently not allowed to carry Indian currency notes beyond Indian border, since the Indian currency is not yet convertible.  This position has been in existence since several years and has not been altered in any way. This restriction is currently under review.

(2) Earlier, non-residents leaving the Indian shores, had to convert the unspent Indian currency into any convertible currency before the Immigration/Customs desk.

(3) The Reserve Bank has been receiving requests to permit Indian currency to be carried into Duty free area as well and accordingly facilitate their conversion before boarding the flight by allowing money changing facilities in the Duty free/security hold area.

(4) The above request, which is in the nature of further liberalisation of exchange control, has been enabled vide the Reserve Bank’s circular of September 16, 2013.  It is thus erroneous to construe this facilitation as any form of additional control.

Incidentally, the Reserve Bank has also issued an A.P.(DIR Series) Circular No. 39 on September 6, 2013 facilitating any person resident in India to take outside India or having gone out of India on a temporary visit, to bring into India (other than to and from Nepal and Bhutan) currency notes up to an amount not exceeding INR10,000/- per person from an earlier limit of INR 7,500/- per person. This limit has been enhanced to provide greater flexibility to the residents travelling abroad in meeting their immediate personal expenses like taxi fare, hotel bills, etc. on arrival.

(Alpana Killawala)
Principal Chief General Manager

Press Release : 2013-14/602



RBI Memorandum of Instructions governing money changing activities

 

RBI/2013-14/259
A.P. (DIR Series) Circular No. 45

September 16, 2013

To,

All Authorised Persons in Foreign Exchange

Madam/ Dear Sir,

Memorandum of Instructions governing money changing activities – Location of Forex Counters in International Airports in India

Attention of Authorised Persons is invited to Para 2 (b) of the A.P.(DIR Series) Circular No.38 dated October 25, 2011.

2. On a review, it has been decided to allow non-residents to carry Indian currency upto a maximum of `10,000/- beyond Immigration/Customs desk to the Duty Free Area/Security Hold Area (SHA) in the departure hall in international airports in India for meeting miscellaneous expenditures subject to the condition that non-residents will not be allowed to carry any Indian Rupee beyond SHA and that they should dispose of Indian currency before boarding the plane.

3. In order to provide money changing facility to non-residents to convert unspent Indian Rupees with them, Foreign Exchange Counters in the departure halls in international airports in India may be established in the Duty Free Area/SHA beyond the Immigration/ Customs desk. Such Foreign Exchange Counters will however, only buy Indian Rupees from non-residents and sell foreign currency to them subject to usual terms and conditions. Putting up suitable display at these counters, reminding the passengers that the area is the last point for non-residents to possess Indian Rupees (INR) will be the responsibility of the Airport Authorities.

4. Authorised Persons may bring the contents of this circular to the notice of their constituents concerned.

5. The directions contained in this Circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and non-compliance with the guidelines would attract penal provisions of Section 11(3) of the Act, ibid.

Yours faithfully,

(Rudra Narayan Kar)
Chief General Manager-in-Charge

 

 

RBI Clarification on Export and Import of Currency

 

RBI/2013-14/233
A.P. (DIR Series) Circular No. 39

September 6, 2013

To

All Category – I Authorised Dealer Banks

Madam/ Sir,

Export and Import of Currency

Attention of Authorised Persons is invited to Regulation (2) of Foreign Exchange Management (Export and Import of Currency) (Amendment) Regulations, 2009, notified vide Notification No. FEMA 195/RB-2009 dated July 7, 2009, in terms of which, any person resident in India may take outside India or having gone out of India on a temporary visit, may bring into India (other than to and from Nepal and Bhutan) currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.7,500 per person.

2. As part of providing greater flexibility to the resident individuals travelling abroad, the existing limit, mentioned above, has been enhanced to Rs. 10,000 per person.

3. Accordingly, any person resident in India:

i) may take outside India (other than to Nepal and Bhutan) currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.10,000 (Rupees ten thousand only) per person; and

ii) who had gone out of India on a temporary visit, may bring into India at the time of his return from any place outside India (other than from Nepal and Bhutan), currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.10,000 (Rupees ten thousand only) per person.

4. Authorised Persons may bring the contents of this circular to the notice of their constituents, customers and foreign counter parties concerned.

5. Reserve Bank of India has since amended the relevant Regulations vide Notification No.FEMA.258/2013-RB dated February 15, 2013, notified vide G.S.R.No.480(E) dated July 12, 2013

5. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(Rudra Narayan Kar)
Chief General Manager-in-Charge


 

 

 

 

Post Your Comments


Enter the above code

 
Comments
Latest Updates
  • Indian expatriates in the Gulf and those intending to go there on work should expand their initials in their ...
  • Taxman turns lens on domestic assets of high net-worth individuals The Income-Tax Department is zeroing in on ...
  • Levy Cheque return charges only if customer is at fault - RBI Circular
Recent Posts
Small Savings Scheme PPF,SCSC, Sukanya Samridhi NSC etc. Revised Interest Rates
Customs Baggage Rule
Budget 2016 Highlights (Direct Tax)
CHANGES IN CUSTOMS BAGGGE DECLARATION REGULATIONS
Economic Survey 2015-16
Interest Rates of Small Saving Schemes to be revised on a Quarterly Basis w. e. f 01/ 04 /2016
Government of India extended the last date for applying for conversion of PIO cards to OCI cards to June 30th 2016 from March 31.
Highlights of the Railway Budget 2015-16
Featured Video
  • Keralarealestatesite
  • NRI Guide 2013
  • NRI Guide 2013
  • Financial planning
  • Financialplanng
  • logo