Can an Indian citizen perform any transaction in foreign currency
In India the permissible currency for undertaking any domestic transaction/s is the Rupee.
Transactions in foreign currency can be undertaken only in the case of cross border transactions. The foreign currency can be purchased from any Authorised Dealer who is approved by the Reserve Bank of India.
Is there any limit on the amount of such transactions which can be undertaken
The Liberalised Remittance Scheme of the Reserve Bank of India permits Indian citizens to avail foreign exchange facility upto a limit of USD 250,000.
This limit is applicable for transactions undertaken within a Financial Year. Key purposes for which such transactions can be undertaken are:
- Private visits to any country
- Gift or donation
- Going abroad for employment or studies
- Emigration
- Travel for business, attending a conference or specialised training
- Expenses in connection with medical treatment abroad
Is there any restriction on the currency or the countries with whom transactions can be undertaken
The transactions can be undertaken in any freely convertible foreign currency.
Any direct or indirect transaction is not permitted with the following countries:
- Countries identified by the Financial Action Task Force as ‘non co-operative countries and territories’
- Individuals and entities identified as posing significant risk of committing acts of terrorism, as advised by the Reserve Bank of India from time to time
The above article provides a general overview on the topic. For further information on the transactions which can be undertaken by an Indian citizen or the list of prohibited countries, kindly contact services@jneela.com.
