Executive Summary:
This circular, issued by the Reserve Bank of India, outlines the Foreign Exchange Management (Export and Import of Currency) Regulations, 2015, effective from December 29, 2015. It supersedes the 2000 regulations and all subsequent amendments. The circular details regulations concerning the export and import of Indian and foreign currency, and it directs Authorised Persons to inform their constituents of these changes.
Key Points / Main Content:
* **Indian Currency (INR) Export and Import:**
* Residents of India may export up to Rs. 25,000 in INR currency notes (excluding Nepal and Bhutan).
* Residents of India may export up to two commemorative coins each (excluding Nepal and Bhutan).
* Residents of India who temporarily visited India may bring back up to Rs. 25,000 in INR currency notes (excluding Nepal and Bhutan).
* Non-residents (excluding citizens of Pakistan or Bangladesh) may import or export up to Rs. 25,000 in INR currency notes.
* **Foreign Exchange (FX) Import into India:**
* Unlimited import of FX is allowed in forms other than currency notes, bank notes, and traveler's cheques.
* Declaration to Customs is required on arrival using the Currency Declaration Form (CDF) for FX exceeding USD 10,000 or its equivalent in currency notes, bank notes, or traveler's cheques; or exceeding USD 5,000 or its equivalent in foreign currency notes alone.
* **Foreign Exchange (FX) Export:**
* Authorised persons may export FX acquired in the normal course of business.
* Individuals can export cheques drawn on foreign currency accounts, FX obtained from authorised persons, and currency in vessel/aircraft safes with RBI permission.
* Individuals may export FX possessed or retained as per existing regulations, and unspent FX brought back from foreign travel.
* Non-residents may export unspent FX up to the amount declared in the CDF.
* **Currency Export and Import to/from Nepal and Bhutan:**
* INR notes (excluding denominations above Rs. 100) can be exported/imported to/from Nepal and Bhutan. Individuals traveling to Nepal/Bhutan can carry up to Rs. 25,000 in Rs. 500 and/or Rs. 1000 notes.
* Nepalese or Bhutanese currency notes can be exported/imported to/from Nepal and Bhutan.
* **Prohibition:**
* Export of Indian coins covered by the Antique and Art Treasure Act, 1972 is prohibited.
Impact Analysis:
* **Authorised Persons:**
* *Impact:* Required to understand and implement the new regulations regarding foreign exchange and currency.
* *Action Required:* Inform their constituents about the updated regulations.
* **Residents and Non-Residents of India:**
* *Impact:* Subject to the new regulations concerning the import and export of Indian and foreign currency.
* *Action Required:* Comply with the specified limits and declaration requirements when importing or exporting currency.
* **Individuals Traveling To or From India:**
* *Impact:* Affected by the rules governing the amount and type of currency they can carry.
* *Action Required:* Adhere to the currency limits and declaration requirements outlined in the circular.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the country's monetary policy and financial system.
Foreign Exchange Management Act, 1999: An Act of the Parliament of India to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
Foreign Exchange Management Export and Import of Currency Regulations, 2015: Regulations pertaining to the export and import of currency as governed by the Foreign Exchange Management Act.
Nepal: A landlocked country in South Asia.
Bhutan: A landlocked country in the Eastern Himalayas, located between India and China.
Currency Declaration Form CDF: A form used to declare foreign currency upon arrival in India.
Antique and Art Treasure Act, 1972: An Indian law protecting antiquities and art treasures.
B P Kanungo: Principal Chief General Manager at Reserve Bank of India
RESERVE BANK OF INDIA
Mumbai - 400 001
RBI/2015-16/310 February 04, 2016
A.P. (DIR Series) Circular No. 45/2015-16 [(1)/6(R)]
To
All Authorised Persons
Madam/ Sir
Foreign Exchange Management (Export and Import of Currency) Regulations,
2015
Attention of Authorised Persons is invited to Foreign Exchange Management (Export
and Import of Currency) Regulations, 2015 notified vide Notification No. FEMA.6(R)/
2015-RB dated December 29, 2015, c.f. G.S.R. No.1004 (E) dated December 29, 2015,
which supersedes the Foreign Exchange Management (Export and Import of Currency)
Regulations, 2000 and all amendments thereto.
2. Synopsis of the new regulations is given as under:
A. Export and import of Indian currency and currency notes
a) Any person resident in India,
i. may take outside India (other than to Nepal and Bhutan) currency notes of
Government of India and Reserve Bank of India notes up to an amount not
exceeding Rs.25,000 (Rupees Twenty Five Thousand only) per person.
ii. may take or send outside India (other than to Nepal and Bhutan)
commemorative coins not exceeding two coins each.
Explanation:
'Commemorative Coin' includes coin issued by Government of India Mint to
commemorate any specific occasion or event and expressed in Indian
currency.
iii. who had gone out of India on a temporary visit, may bring into India at the
time of his return from any place outside India (other than from Nepal and
Bhutan), currency notes of Government of India and Reserve Bank of India
1notes up to an amount not exceeding Rs.25,000 (Rupees Twenty Five
Thousand only) per person.
b) Any person resident outside India, not being a citizen of Pakistan or
Bangladesh, and visiting India,
i. may take outside India currency notes of Government of India and Reserve
Bank of India notes up to an amount not exceeding Rs.25,000 (Rupees
Twenty Five Thousand only) per person
ii. may bring into India currency notes of Government of India and Reserve
Bank of India notes up to an amount not exceeding Rs.25,000 (Rupees
Twenty Five Thousand only) per person
B. Import of Foreign Exchange into India
A person,
i. may send into India without limit foreign exchange in any form other than
currency notes, bank notes and travelers cheques;
ii. may bring into India from any place outside India without limit foreign
exchange (other than unissued notes) subject to the condition that such
person makes, on arrival in India, a declaration to the Customs authorities in
Currency Declaration Form (CDF). It shall not be necessary to make such
declaration where the aggregate value of the foreign exchange in the form of
currency notes, bank notes or travelers cheques brought in by such person at
any one time does not exceed US$10,000 (US Dollars ten thousand) or its
equivalent and/ or the aggregate value of foreign currency notes brought in by
such person at any one time does not exceed US$ 5,000 (US Dollars five
thousand) or its equivalent.
C. Export of Foreign Exchange and Currency Notes
i. An authorised person may send out of India foreign currency acquired in
normal course of business,
ii. any person may take or send out of India, -
a. Cheques drawn on foreign currency account maintained in accordance
with Foreign Exchange Management (Foreign Currency Accounts by a
person resident in India) Regulations, 2000;
b. foreign exchange obtained by him by drawal from an authorised person in
accordance with the provisions of the Act or the rules or regulations or
directions made or issued thereunder;
2c. currency in the safes of vessels or aircrafts which has been brought into
India or which has been taken on board a vessel or aircraft with the
permission of the Reserve Bank;
iii. any person may take out of India, -
a. foreign exchange possessed by him in accordance with the Foreign
Exchange Management (Possession and Retention of Foreign Currency)
Regulations, 2000 ;
b. unspent foreign exchange brought back by him to India while returning
from travel abroad and retained in accordance with the Foreign Exchange
Management (Possession and Retention of Foreign Currency)
Regulations, 2000 ;
iv. any person resident outside India may take out of India unspent foreign
exchange not exceeding the amount brought in by him and declared in
Currency Declaration Form (CDF).
D. Export and Import of currency to or from Nepal and Bhutan
A person may-
i. take or send out of India to Nepal or Bhutan, currency notes of Government of
India and Reserve Bank of India notes (other than notes of denominations of
above Rs.100 in either case) provided that an individual travelling from India
to Nepal or Bhutan can carry Reserve Bank of India currency notes of
denomination Rs.500/- and/or Rs.1000/- up to a limit of Rs.25,000/- ;
ii. bring into India from Nepal or Bhutan, currency notes of Government of India
and Reserve Bank of India notes (other than notes of denominations of above
Rs.100 in either case) ;
iii. take out of India to Nepal or Bhutan, or bring into India from Nepal or Bhutan,
currency notes being the currency of Nepal or Bhutan.
E. Prohibition on Export of Indian Coins
No person shall take or send out of India the Indian coins which are covered by
the Antique and Art Treasure Act, 1972.
3. The new regulations have been notified vide Notification No. FEMA. 6 (R)/2015-RB
dated December 29, 2015, c.f. G.S.R. No.1004 (E) dated December 29, 2015 and shall
come into force with effect from December 29, 2015.
4. Authorised Persons may bring the contents of the circular to the notice of their
constituents concerned.
35. The directions contained in this circular have been issued under Sections 10(4) and
11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without
prejudice to permissions/ approvals, if any, required under any other law.
Yours faithfully,
(B P Kanungo)
Principal Chief General Manager
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