CURRENCY REGULATIONS IN INDIA

Currency (Indian & Foreign)

http://www.customsmumbaiairport.gov.in (17th Mar. 2015)

Ø   Definition of Currency & Currency notes: 

As per para (b) to Explanation for the purposes of Section 14 of the Customs Act, 1962, “foreign currency” and “Indian currency” have the meanings respectively assigned to them in clause (m) and clause (q) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999).

As per clause (m) of section 2 of the Foreign Exchange Management Act, 1999, “foreign currency” means any currency other than Indian currency.

As per clause (q) of section 2 of the Foreign Exchange Management Act, 1999, “Indian currency” means currency which is expressed or drawn in Indian rupees but does not include special bank notes and special one rupee notes under section 28A of the Reserve Bank of India Act, 1934 (2 of 1934).

As per clause (h) of section 2 of the Foreign Exchange Management Act, 1999, “Currency”includes all currency notes, postal notes, postal orders, money orders, cheques, drafts, letters of credit, bills of exchange and promissory notes, credit cards or such other similar instruments, as may be notified by the RBI.

As per clause (i) of Section 2 of the Foreign Exchange Management Act, 1999 “Currency notes” means and includes cash in the form of coins and bank notes.

Export from & Import into India of Currency or Currency notes are governed by the Foreign Exchange Management (Export and Import of Currency) Regulations, 2000 which came into force w.e.f. 01.06.2000.

Ø   Import of Foreign Exchange/Currency:

Any person can bring into India from any place outside India foreign exchange without any value limit. However, a declaration to the Customs authorities shall be made in the prescribed Currency Declaration Form (CDF) in the following cases:-
(a) Where the aggregate value of foreign currency notes exceeds US$ 5000/- or equivalent; or

(b) Where the aggregate value of foreign exchange in the form of currency notes, bank notes or traveller’s cheques exceeds US$ 10,000/- or its equivalent.

Ø   Currency Declaration Counter:

There is a specific customs counter for declaration of foreign exchange/currency in the arrival hall of CSI Airport. The Customs Officer issues a certificate in the form of Currency Declaration Form (CDF) in prescribed proforma after physically verifying the currency notes and travellers’ cheques, etc.

Ø  Export of foreign exchange/currency notes:

·            Indian residents going abroad are allowed to take  with themforeign currency upto any amount so long as the same has been purchased from an authorized foreign exchange dealer as per norms.

·         Any person resident out of India is allowed to take out of India unspent foreign currency not exceeding the amount brought by him on his arrival in India provided that in the case of foreign currency notes exceeding US$ 5,000/- or its equivalent or foreign exchange in the form of currency notes, bank notes or traveller’s cheques exceeding US$ 10,000/- or its equivalent, the same was declared to the Customs authorities in Currency Declaration Form (CDF) at the time of his arrival in India.

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Ø  Sale of Exchange:

·         Release of foreign exchange is not admissible for travel to and transaction with residents of Nepal and Bhutan.

Authorised Persons may release foreign exchange for travel purposes on the basis of a declaration given by the traveller regarding the amount of foreign exchange availed of during the financial year.

Indian residents including infants travelling outside India for any purposeto any country (except Nepal and Bhutan) are allowed to be released foreign exchangeupto US$ 10,000/- or its equivalent per person for one or more “private visits” in one financial year.

Indian residents going to any country (except Nepal and Bhutan) are allowed to be released foreign exchange, irrespective of period of stay, for undertaking business travel, or attending a Conference or specialized training or for maintenance expenses of a patient going abroad for medical treatment or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment / check-upupto US$ 25,000/- or its equivalent per person.

Ø  Out of the overall foreign exchange being sold to a traveller, exchange in the form of foreign currency notes and coins are allowed to be sold upto the limit as mentioned below:

Category of Traveller	Limit
(i) Travellers proceeding to countriesother than Iraq, Libya, Islamic republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States.	Upto US$ 3,000/- or its equivalent;
(ii) Travellers proceeding to Iraq or Libya.	Upto US$ 5,000/- or its equivalent;
(iii) Travellers proceeding to Islamic Republic of Iran, Russian Federation andother Republics of Commonwealth ofIndependent States.	Full exchange may be released.

Click here for individual “names of Republics of Commonwealth of Independent States”.

Ø   Period for surrender of foreign exchange:

In case of the foreign exchange purchased for a specific purpose is not utilized for that purpose, it could be utilized for any other eligible purpose for which drawal of foreign exchange is permitted under the relevant Rules / Regulations.

General permission is available to any resident individual to surrender received / realised / unspent / unused foreign exchange to an Authorised Person within  a period of 180 days from the date of such receipt/realization/purchase/acquisition or date of return  of the traveler to India, as the case may be. This liberalized uniform time limit of 180 days is applicable only to resident individuals and in areas other than export of goods and services.

Ø   Unspent Foreign Exchange:

As mentioned above, unspent foreign exchange brought back to India by a resident individual should be surrendered to an authorised Person within  180 days from the date of return of the traveler. Exchange so brought back can be utilized by the individual for his subsequent visit abroad.

However, a returning passenger is allowed to retain with him, such unspent amount of foreign currency traveler’s cheques  and currency notes upto an aggregate value of US$ 2,000/- or its equivalent and foreign coins without any ceiling beyond 180 days ( as per Notification No. FEMA 11/2000-RB dated May 3, 2000). Foreign exchange so retained, can be utilized by the traveler for his subsequent visit abroad. Besides this, residents are allowed to hold foreign currency upto US$ 2,000/- or its equivalent provided the foreign exchange was –

i)             acquired by him while on a visit to any place outside India by way of payment for services not arising from any business in or anything done in India; or

ii)            acquired by him from any person not resident in India  and who is on a visit to India, as honorarium or gift or for services rendered or in settlement of any lawful obligation; or

iii)          acquired by him while on a visit to any place outside India.

This retained currency can be carried by the traveler in addition to his other entitlements during the later visit(s).

Ø   International Credit Cards:

The restrictions contained in Rule 5 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000 will not be applicable for use of International Credit Cards (ICCs) by residents for making payment towards expenses, while on a visit outsideIndia.

Ø   Import and Export of Indian Currency:

Import and Export of Indian Currency are “Restricted”.

However,

 (i)  any person resident in India is allowed to take outside India  currency notes of Government of India and Reserve Bank of India notes upto Rs. 7,500/- per person;

(ii) any person resident in India who had gone out of India on a temporary visit, isallowed to bring   into India at the time of his return from any place outside India, currency notes of Government of India and Reserve Bank of India notes upto Rs. 7,500/- per person; and

(iii) a passenger coming from Nepal or Bhutan to India and/or a passenger travelling toNepal or Bhutan from India, is allowed to carry currency notes of Government of India and Reserve Bank of India noteswithout any value restriction except notes of denominations of above Rs. 100/- in either case, so long as the same constitutes part of his bonafide baggage.

But, no person is allowed to take or send out of India the Indian coins which are covered by the Antique and Art Treasure Act, 1972.