This article is written by Rimjhim Vaishnavi, a student of NUSRL, on amount of foreign currency that can be carried while traveling to or from India.

Introduction

Foreign currency is defined as a currency which has been printed in a country other than the home country. One country’s currency cannot be used to buy goods in another country. Hence, a person travelling to other countries has to carry some foreign currency. In India, carrying of such foreign currency is controlled and guided by the Customs Act, 1962 and the Foreign Exchange Management Act, 1999. These Acts also prohibit a person from holding a foreign currency account; a person can hold a foreign currency account only after getting a permit from the Reserve Bank of India (RBI).

Apart from currency, they also regulate and guide the export and import of goods either by courier or during travel. Additionally, they also keep an account of pets being imported and exported. The main purpose behind these regulations is to stop illegal transportation and transaction of unauthorised goods and services. This ensures and strengthens the security of the nation. Another purpose is to maintain a balance between the outflow and inflow of foreign currency in the country.

How much foreign currency can one carry while either travelling to or from India?

Every person while flying out of India has to go through Customs clearance, which looks into all the materials being carried by a passenger including cash; such cash being either local currency or foreign currency. The same Customs clearance process is followed when any person travels from a foreign country to India.

Apart from this, a person either importing or exporting high valuable items must get an Import Certificate or an Export Certificate respectively from the Customs authorities.

As per the new Customs Rules, which was amended in 2014, passengers flying into India will be required to declare their Indian currency if it exceeds Rs.10,000.

Export: Currency regulation in India.

• Indian Currency.

Export of Indian currency is prohibited. But an Indian resident, who is going abroad, is allowed to carry Indian currency upto Rs.7,500. If such Indian currency exceeds Rs.10,000, the person will have to make a declaration to the Customs Authorities regarding the same.

However, carrying of Indian currency notes to Nepal and Bhutan in denominations of 500 and 1,000 is prohibited.

• Foreign Currency

Persons departing from India can carry foreign currency not exceeding an amount that they had brought along with them to India; however, it should not exceed US $10,000. In case the cash carried by such persons is equivalent to or exceeds USD 10,000, traveller’s cheques must be declared.

Import: Currency regulation in India

• Local Currency/ Indian Currency:

An Indian resident going to the US from India can carry an amount not exceeding INR 7,500.

People who are non-residents of India are allowed to carry only the unspent money brought by them.

• Foreign Currency

The limit of foreign currency notes that a person can bring to India is USD 3,000; and if the person exceeds such amount, he will have to declare it by filing a Currency Declaration Form (CDF).

In relation to a person coming to India from the US, there is no limitation on bringing foreign exchange in India, but such person can carry an amount in cash not exceeding USD 5,000. If the money carried exceeds USD 10,000, the same has to be declared to the customs.

Other regulations

• If a person is returning from Bhutan, Nepal, Myanmar or China and has stayed there for more than 3 days, such a person can carry INR 6,000. But if the stay was for a period less than 3 days, the person is not permitted to carry any money. If a person is returning from any other country, he can carry upto INR 35,000 if he has stayed in such country for more than 3 days. But if the person has stayed in said country for a period of 3 days or less, he can carry only upto INR 15,000.
• Citizens of Bhutan and Nepal coming from other countries to India can carry upto INR 8,000.
• Citizens of Pakistan coming from Pakistan can carry upto INR 6000 while those coming from other countries can carry upto INR 8,000.

Conclusion

Tourism and Travelling is one of the major sources of foreign currency in any country. Due to many incidents of illegal activities like smuggling and other unauthorised transactions, the government has made some rules relating to the carrying of foreign currency in liquidated form, which to a large extent has brought a halt on such illegal transactions, but a complete halt is yet to be seen. The government is concerned about this and hence is amending the existing legislations in relation to foreign exchange and is at the brink of establishing a new legislation as well.

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