Foreign Currency Limit from India: Travel, Business & Education Rules
How much foreign currency can you take from India? Under the Liberalised Remittance Scheme (LRS), a resident individual can generally remit up to USD 250,000 per financial year for permitted purposes, subject to applicable RBI/FEMA rules. However, the USD 250,000 LRS limit is different from the amount of physical foreign currency notes and coins that can be carried abroad.
The applicable rules can vary depending on whether you are travelling for a private visit, business, education or another permitted purpose. This guide explains the foreign currency limit, cash limit and important RBI rules Indian residents should know before travelling abroad.
The amount of foreign currency that an individual can take abroad for a private visit is:
- Any resident in India can take up to USD 250000 or equivalent in a financial year under the liberalized remittance scheme by RBI. USD 250000 as of 15.08.2021 is equivalent to Rs. 1,85,61,500.
- There is no limit on several travels but in any case, the limit should not exceed USD 250000 per financial year.
- The limit is available for individuals and not for a family. So, if there are four members in a family then each member can take USD 250000 per visit, but this limit can not be combined.
- Foreign currency notes and coins only up to USD 3000 can be carried by an individual per visit and the rest amount for USD 247000 can be carried in the form of Drafts, Store value cards, travel currency cards, and travelers’ cheques. Use a real-time currency calculator to get INR value.
- International credit cards and debit cards can also be used abroad under the total limit of USD 250000 per year.
- The air tickets bought in India in INR for travel to any foreign country will be a part of the individual’s overall limit of USD 250000/-.
- Currency notes up to Rs. 50000 can be purchased in cash and the balance can be purchased through cheques, RTGS, or bank transfers.
- For traveling to Nepal and Bhutan one can carry the currency notes of Rs. 100 and below denominations up to any limit. One cannot carry Rs. 500 and Rs 2000 notes for more than Rs. 25000.
- Travelers returning to India from a foreign trip need to surrender the unspent foreign currency notes and travelers’ cheques within 180 days of the return date, but they can retain USD 2000 only for the next visit.
- No need to surrender coins. They can be retained forever.
The allowable amount of foreign currency for a business visit abroad is:
- For business travel to foreign countries, resident Indians can take up to USD 250000 in a financial year.
- There is no limit on several travels but in any case, the limit should not exceed USD 250000 per financial year. This limit can be exhausted in a single visit also.
- Foreign currency notes and coins only up to USD 3000 can be carried by an individual per visit and the rest amount of USD 247000 can be carried in the form of Drafts, Store value cards, travel currency cards, and travelers’ cheques.
Amount of foreign currency one can take for studying abroad:
- For study abroad, one can remit up to USD 250000 in a financial year under the LRS scheme.
- This limit includes the following expenses:
- Remittance to universities or colleges for education fees and hostel fees.
- Expenses for food, accommodation, and other personal expenses.
- Tickets booked for traveling abroad from India.
- If the course fee is more than USD 250000, then Authorized Dealers (Banks & FFMCs) may permit the remittance over and above USD 250000 without prior approval of RBI based on the evidence provided.
Foreign Currency Limit From India: Quick Answer
| Question | Short answer |
|---|---|
| What is the LRS limit? | Up to USD 250,000 per resident individual per financial year for permitted purposes, subject to applicable rules. |
| Is USD 250,000 the cash limit? | No. The overall LRS limit and physical cash limit are different. |
| How much can generally be carried as foreign currency notes/coins? | Subject to the applicable cash limit and destination/purpose-specific exceptions. |
| Is the limit per person or family? | The LRS limit applies to the individual, subject to applicable rules. |
| Can I travel more than once? | Yes, but applicable transactions count toward the relevant annual limit. |
| Does education come under LRS? | Yes, subject to the applicable education-related provisions. |
FAQs:
Is the USD 250,000 LRS Limit the Same as the Foreign Currency Cash Limit?
No. The USD 250,000 LRS limit is not the same as the physical foreign currency cash limit. LRS covers permitted remittances by resident individuals, whereas separate rules apply to the amount that may be released as foreign currency notes and coins.
How Much Foreign Currency Can You Carry as Cash?
For travellers going to countries other than those specified in the exceptions, foreign currency notes and coins may generally be released up to USD 3,000 or its equivalent, subject to applicable RBI/FEMA rules and destination-specific provisions.
Can I Take Foreign Currency Abroad More Than Once a Year?
Yes. Multiple trips can be made during a financial year, but the applicable annual LRS limit is not reset for every trip. Transactions are considered against the individual’s applicable annual entitlement.
What Documents Are Required to Buy Foreign Currency?
Discuss applicable requirements such as:
- Passport
- PAN
- Visa/travel documents, where applicable
- Purpose-related documents
- KYC documents
- Form A2/declaration, where applicable
- Education-related documentation for students
