Before heading to the airport, you must be aware of the limits on how much cash you can carry in and out of India. Understanding these restrictions set by the RBI and Indian Customs is crucial to avoid penalties and ensure a smooth journey. This guide will help in the forex planning for your next international trip.
Rules for Carrying Indian Currency Abroad and Back to India
Import and export of Indian currency is generally not allowed, but there’s an exception for Indian residents travelling abroad. Indian residents can carry up to Rs. 25,000 in cash when they travel in and out of the country.1 Authorities impose this restriction to control currency circulation and prevent illegal fund transfers.
How Much Foreign Currency Can I Carry as Cash from India?
Travellers heading to foreign countries other than a few exceptions, can purchase up to USD 3,000 in foreign currency notes or coins per trip. However, the total foreign exchange allowed under the Liberalized Remittance Scheme (LRS) is up to USD 250,000 per financial year. Travellers can carry the remaining amount in forex cards, traveller’s cheques, or banker’s drafts, which are safer options.3
The exceptions are:
- Travelers to Iraq and Libya can take up to USD 5,000 in currency per trip.
- Travelers to Iran, Russia, and the Commonwealth of Independent States can carry their entire foreign exchange allowance (up to USD 250,000) in cash.
- Those going on Haj or Umrah pilgrimages can take the full entitlement (up to USD 250,000) or the amount specified by the Haj Committee of India in cash.
How Much Foreign Currency Can I Carry as Cash to India?
A person arriving in India from another country can bring in foreign currency without any restrictions. However, currency declaration to the Customs Authorities is necessary during specific conditions:
- If the total value of the foreign currency in the form of cash, bank notes, or traveller’s checks exceeds USD 10,000 or its equivalent.
- If the value of foreign currency as cash alone surpasses USD 5,000 or its equivalent.
What Happens If You Exceed the Currency Limit for International Travel?
Carrying more than the permitted amount could lead to your currency being confiscated at customs, along with potential fines. To avoid such issues, it is essential to declare any amount exceeding Rs. 25,000 before entering or leaving India.1
How to Declare Foreign Currency in India?
Passengers carrying excess cash than their eligible Duty-Free allowance, are required to complete a Customs Declaration Form and use the Red Channel. These passengers can also declare dutiable currency to Indian Customs using the ATITHI mobile app beforehand.1
Tips for Indian Travellers to Manage Currency Limits
Here are some handy tips to make sure you are within the legal limits and avoid any cash-related hassles while travelling:
1.Use Forex Cards
Besides being a safer and more convenient option, prepaid Forex cards enable you to load single or multiple currencies. Additionally, they provide more favourable exchange rates compared to traditional money exchange counters at the airport. Forex cards can be used at POS machines and ATMs. Different from debit and credit cards, forex cards do not have a cross-conversion fee since the same (foreign) currency is loaded and withdrawn.
2. Follow the 70:30 or 50:50 Ratio
For foreign countries that follow a cashless culture, follow the 50:50 ratio. That is, carry 50% as foreign currency and upload 50% in a forex card. On the other hand, for cash-based countries, maintain a 70:30 ratio where 70% of the foreign currency must be loaded in a forex card and the rest carried as cash.
3. Stay Updated:
RBI regulations may change, so always check the latest guidelines before your trip. Refer to the sources attached at the end of this article, to know more on the same. Consider using forex service providers like ExTravelMoney to track exchange rates and convert currencies. The tools and customer care service in these online platforms can help you to make informed decisions when exchanging currency for overseas travel.
4. Declare Large Sums:
If you’re carrying more than the allowed limit, don’t hesitate to declare it at customs to avoid fines and confiscation.
Travelling with cash, whether Indian or foreign currency, comes with its set of regulations. Understanding these rules can save you from unnecessary penalties and make your journey stress-free. Always stay updated with the latest RBI guidelines and use digital alternatives like ExTravelMoney to experience a smooth travel experience.
Also Read: How To Claim TCS Refund Online When Filing ITR?
Article Sources:
- Central Board of Indirect Taxes and Customs
- Reserve Bank of India INR Limit
- Reserve Bank of India Forex Limits
- Reserve Bank of India Currency Import Rules
Ann Mariya Job is the Associate Content Writer at ExTravelMoney.com. Holding a Bachelor’s in Journalism, she excels in creating deeply researched, engaging, and crisp content. Her work helps readers understand the complexities of foreign exchange, overseas money transfers, and international travel.