If you are a frequent travelor going abroad or travelling outside india, be careful that you dont violate Forex (foreign exchange) rules in India. Most people prefer to take money with them either as travellers check or Prepaid travel card in foreign currency, but there are limits and regulations for everything. Keep in mind that most banks insist doing foreign transactions from current account.
Here are quick summary of forex rules in India:
1. If you are travelling as tourist, you are allowed to take maximum USD 10,000 (equivalent of 4.5 lacs) combined for whole single year. You can take any currency EUR, JPY, GBP but the maximum is 10k USD.
2. If you are travelling for business, you are allowed to take a maximum of USD 25,000 per trip.
3. If you are going abroad for studies, medical purpose or immigration to another country, you are allowed to take maximum of USD 100,000 (approx 45 lacs) in a financial year.
5. If you are buying a property abroad, sending gifts or donations to charities you can you can avail benefit from Liberalized Remittance Scheme, which allows you to take maximum of USD 200,000 (approx 90 lacs) in a financial year.
6. You cannot take more than Rs. 7,500 in indian currency notes when going abroad.
7. While coming from abroad, if you have foreign currency or travellers cheques with value above USD 5,000 you must declare that with customs authorities at airport.
For more information in detail for foreign exchange transactions, please visit RBI website
You may be asked to fill up certain forms depending on the reason why you are going abroad and the most important form is A2 form.
Please visit the official bank websites to download such forms
ICICI bank – Download forms
HDFC Bank – Download forms
Note: The above is a general information and please consult a lawyer or accountant in India for any legal information.
