DYK: Nature of visit determines forex amount one can carry

Hemant Mishra/Mint
Saurabh Kumar: Live Mint : Wed, Jan 30 2013. 07 29 PM IST

Under FEMA, an Indian resident going abroad can carry a stipulated amount of foreign exchange

Under the Foreign Exchange Management Act (FEMA), any Indian resident going abroad can carry or avail a stipulated amount of foreign exchange. However, it should be noted that the nature of visit determines how much foreign currency one can carry.

Private visit

Barring Nepal and Bhutan, for private visits to meet relatives or tourism, the allowed limit is $10,000 (Rs.5,35,700) per person in any financial year. Which means that even if you make multiple visits for such purposes, the aggregate limit remains $10,000. Out of the said amount, $3,000 can be carried in the form of currency notes and the rest needs to be carried in the form of traveller’s cheques, banker’s draft or travel cards. However, travellers to Iraq and Libya can get up to $5,000 in the form of currency notes and travellers to Iran, Russia and Republics of Commonwealth of Independent states can get the entire amount in the form of currency notes.

Do remember that this amount can be availed over and above the specified limit under other reasons for foreign travel.

Business visit

For any business trips abroad, including conferences, seminars, study tour or training, an individual can carry up to $25,000 for each visit and the number of days required for the visit does not change the stipulation. Here again Nepal and Bhutan remain an exception. Note that even if an individual clubs two purposes, say business and conference, the upper limit remains $25,000. If an individual requires more foreign exchange, prior permission from the Reserve Bank of India will be required.

Medical treatment

An amount of $100,000 can be obtained in foreign exchange if the purpose of visit is medical treatment. The issuer in this case is authorized to do so without requiring an estimate from a medical practitioner or hospital in India or abroad. This has been done to expedite the process.

Further requirement of foreign currency can be met by furnishing estimates. This can be even be availed by any Indian resident who has fallen sick abroad. Additionally, up to $25,000 can be availed for maintenance expenses of the patient or for a person accompanying the patient. This is over and above the limit of $100,000 for treatment.

Education

Students who secure a seat in any educational institute abroad can avail $100,000 per academic year or the estimate received by the institute, whichever is higher. Facilities available to non-resident Indians under FEMA are available to students as well. A student who opens a non-resident ordinary account can withdraw or remit $1 million per financial year. Also, a student can avail $10,000 for incidental expenses