Monday, February 8, 2016

Possession and Retention of Foreign Currency



 Synopsis of the new regulations is given as under:

A.   Following are the limits for possession or retention of foreign currency or foreign coins :-

i.          possession without limit of foreign currency and coins by an authorised person within the scope of his authority ;
ii.         possession without limit of foreign coins by any person;
iii.         retention by a person resident in India of foreign currency notes, bank notes and foreign currency travellers' cheques not exceeding US$ 2000 or its equivalent in aggregate, provided that such foreign exchange in the form of currency notes, bank notes and travellers cheques;

a.     was acquired by him while on a visit abroad by way of payment for services not arising from any business in or anything done in India; or
b.    was acquired by him, from non resident and who is on a visit to India, as honorarium or gift or for services rendered or in settlement of any lawful obligation; or
c.     was acquired by him by way of honorarium or gift while on a visit to any place outside India; or
d.    represents unspent amount of foreign exchange acquired by him from an authorised person for travel abroad.

B.    A person temporarily resident in India may possess foreign currency without limit in the form of currency notes, bank notes and travellers cheques, if such foreign currency was acquired, held or owned by him when he was resident outside India and, has been brought into India in accordance with the regulations.

The new regulations shall come into force with effect from December 29, 2015.

Based on RBI Circular dt 04/02/16. Please visit www.rbi.org.in for any further clarification if required…..       Poppy