import & export of currency

RBI has vide their notification dated 11th August, 2020 amended the Foreign Exchange Management (Import and Export of Currency) Regulations, 2015 wherein they have added another clause 9 to the regulations. Vide this new clause 9, RBI has given themselves power to allow import or export of currency subject to such conditions as may be stipulated.

Hitherto, resident persons were allowed to take out of India, currency notes upto Rs.5000/- or two commemorative coins. Any person who had gone out of India on temporary basis may bring back to India, currency notes upto Rs.5000/- .

Export of coins covered under the Antique and Art Treasure Act, 1972 is strictly prohibited.

Clause 5 stipulates that no person shall except under general or special permission export or import foreign currency.

Clause 6 permits a person to import foreign exchange into India without any limit except foreign currency notes, bank notes and travellers cheques or unissued notes. The person bringing in foreign exchange has to make a declaration at the time of arrival at the Customs in form CDF (currency declaration form). But the declaration is required only if the person is bringing in foreign currency notes exceeding US$5000 or its equivalent or exceeding US$10,000 or its equivalent, in foreign currency notes, travellers cheques, bank notes all put together.

Clause 7 allows a person to take or send out of India, (1) cheques drawn on foreign currency account maintained by him, or (2) foreign currency obtained by him by drawal from an authorised dealer in accordance with the regulations, (c) currency in the safes of vessels or aircrafts in accordance with the regulations,

Further he may take out of India, foreign exchange already possessed by him in accordance with the regulations and unspent foreign exchange retained by him from his travels abroad in accordance with the regulations.

Clause 8 pertains to export or import of foreign currency to and from Nepal and Bhutan.

Now this new clause 9 which empowers RBI to allow any person to export or import currency on an application being made on such terms & conditions as it may stipulate and if the RBI is satisfied that it is necessary to do so.

The above regulations are available at the below link https://www.rbi.org.in/SCRIPTS/BS_ECMNotificationUserView.aspx?Id=160

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