The Indian rupee is witnessing sharpened depreciation in the ongoing Covid-19 pandemic situation. The rupee traded in the range of 75.27 to 75.50 per share. US dollar on Friday and finally ended at $ 75.46 per share. US dollar. Experts predict it could break above the 80 mark to a dollar if the Covid-19 related disruptions are extended until the end of June.
An analysis by the credit rating agency Acuite Ratings and Research indicates that if the impact of the pandemic is particularly severe with a shutdown in India throughout April-June quarter along with global oil prices averaging $ 40 per share. Barrel, the rupee could possibly inch up to the band Rs. 81-83 pr. Dollar during this period.
The depreciation in rupee is always an expensive affair for those planning an overseas trip or having to make some transactions in dollars. The other side of the story is that people mostly lack knowledge of the rules of foreign currency transfers.
How much should I bring in foreign currency while traveling abroad? How do I buy the foreign currency? How is the currency transported?
These are some questions that usually strike the mind of an ordinary man while planning a trip abroad.
Basically, one of the readers sent an inquiry to know if the permission of the Reserve Bank of India is required to purchase currency for medical treatment abroad. Some parents want to know the foreign currency allowance limit for studying abroad? And where to buy foreign currency?
First, let’s understand the Reserve Bank of India’s Liberalized Remittance Scheme (LRS). Under the scheme, all residents, including minors, are free to transfer up to USD 2,550,000 per person. Financial year (April – March) for any permitted current or capital account transaction or a combination of both.
How much foreign currency can you bring?
As scheduled in the Liberalized Remittance Scheme (LRS), you are allowed to freely transfer up to $ 250,000 (about Rs. 1.89 cr. As of May 13) per month. Financial year for all permitted transactions via bank channels. You can carry Indian currency (cash) up to Rs. 25,000 and foreign currency notes or coins up to $ 3,000 per foreign trip. The balance can be entered in the form of store value cards, travel checks or bank draft. These limits are especially true when traveling to almost every country in the world, with a few, including Nepal, Bhutan, Libya, Iraq, Iran and the Russian Federation, among others.
Which areas are covered broadly under the scheme?
You can use the foreign exchange market for study abroad, travel for business or attend a conference or special education or for meeting expenses for meeting medical expenses, or check-ups abroad, or for accompanying a patient traveling abroad for medical treatment. / check-up. You can also use the facility to make donations. Private visits to any country (except Nepal and Bhutan) traveling abroad to hire, medical expenses abroad, etc. are also covered by the scheme.
In particular, banks do not require any RBI authorization for such transactions. It is up to the bank to satisfy itself about the authenticity of the transactions
Is there any special time to buy the exchange rate before the travel date?
There is no specific time limit for getting currency. Usually you can buy it six months before your travel date from an authorized dealer. As per the law, you can trade forex equivalent of up to Rs. 50,000 if you want it in cash. If the amount you want to buy forex equals or more than Rs. 50,000, the payment must be made using an intersection check, bankers check, payment order, demand draft, debit card, credit card or prepaid card. And it is mandatory to have a valid passport and visa (if needed for travel to this country) while seeking foreign exchange facility.
What is the convenient way to transport foreign currency?
Do not carry currency only in a medium. A combination of forex cards and a small amount of currency works well. You should also enable debt or credit cards for international use when traveling abroad, but avoid using them as there is a high transaction fee associated with them.
Experts say you should always be prepared in advance and never exchange at airports, as the person will have to exchange a 5-10% more when buying or selling currency there. Prefer to buy the exchange rate from authorized dealers and banks.
How much unused foreign currency can be brought back to India?
There is no limit to returning unused currency while returning from a foreign trip. However, if the total value of the exchange rate exceeds $ 10,000 or its equivalent and / or the value of the foreign currency alone exceeds $ 5,000 or its equivalents, it must be declared to the customs authorities at the airport in the Currency Declaration Form (CDF) on arrival in India.
You must surrender any unused foreign money if held in the form of currency notes and traveler’s checks within 6 months of your return. However, you can keep the exchange rates up to $ 2,000 in the form of foreign currency notes or travel checks for future use.