**Policy Summary:**
This Reserve Bank of India (RBI) circular (RBI/2016-17/263, A.P. DIR Series Circular No. 42), dated March 30, 2017, addresses the purchase of foreign exchange from foreign citizens and other customers by Authorized Persons. It rescinds the temporary measures introduced in Circulars No. 20, 22, and 24 (dated November 25, 2016, December 16, 2016, and January 3, 2017, respectively) which permitted foreign passport holders to exchange foreign currency for Indian Rupees up to a limit of Rs. 5000 per week until January 31, 2017. The circular reinstates the original guidelines outlined in paragraph 4.4 e iii of the Annex to A.P. DIR Series Circular No. 17 dated November 27, 2009, aligning with the restoration of limits on cash withdrawals. Authorized Persons are instructed to implement these changes and inform their constituents. The directions are issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999, and are independent of other legal requirements. For further information, contact Shekhar Bhatnagar, Chief General Manager-In-Charge, Reserve Bank of India, Mumbai 400 001.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system and managing the country's currency.
Mumbai, Maharashtra: The city in India where the Reserve Bank of India is located; it is also the financial capital of India.
Authorised Persons: Entities authorized by the Reserve Bank of India to deal in foreign exchange.
A.P. DIR Series Circular No. 42: A specific circular issued by the Reserve Bank of India related to foreign exchange transactions.
A.P. DIR Series Circular No. 20: A specific circular issued by the Reserve Bank of India related to foreign exchange transactions.
A.P. DIR Series Circular No. 22: A specific circular issued by the Reserve Bank of India related to foreign exchange transactions.
A.P. DIR Series Circular No. 24: A specific circular issued by the Reserve Bank of India related to foreign exchange transactions.
Foreign Exchange Management Act, 1999: An Act of the Parliament of India enacted 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.
RESERVE BANK OF INDIA
Mumbai - 400 001
RBI/2016-17/263
A.P. (DIR Series) Circular No. 42 March 30, 2017
To
All Authorised Persons
Madam / Sir,
Purchase of foreign exchange from foreign citizens and others
Attention of Authorized Persons is invited to the A.P. (DIR Series) Circulars No. 20, 22 and
24 dated November 25, 2016, December 16, 2016 and January 3, 2017 respectively,
permitting foreign citizens (i.e. foreign passport holders) to exchange foreign exchange for
Indian currency notes up to a limit of Rs. 5000/- per week till January 31, 2017.
2. On a review of the provisions contained in these circulars, in line with restoration of limits
on cash withdrawals from bank accounts and ATMs, it has been decided to restore status quo
ante regarding purchase of foreign exchange from customers by authorised persons as
mentioned in paragraph 4.4 (e) (iii) of Annex to A.P. (DIR Series) Circular No.17 dated
November 27, 2009.
3. Authorised Persons may follow the above instructions and bring the contents of this
circular to the notice of their constituents.
4. The directions contained in this circular have been issued under Section 10(4) and Section
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,
(Shekhar Bhatnagar)
Chief General Manager-In-Charge