Forex Information

• Foreign Exchange Management Act
• Basic Travel Quota
• Business Visits
• Entertainment Allowance
• Business Visits against Foreign Hospitality
  
  FOREIGN EXCHANGE MANAGEMENT ACT
  Sale of Foreign Exchange to public under Foreign Exchange Management Act (FEMA), 1999.
  Foreign Currency in the form of notes or coins is allowed to be sold to out-going Indian travelers other than:
• Transit passengers with foreign passports.
• Holders of foreign passports who have open dated or return tickets issued outside India.
  
  

  Category of Traveler	Limits
  All travelers proceeding outside India other than to Bangladesh, Bhutan and Nepal	Foreign Currency Notes and Coins up to US $500 or its equivalent.
  Travelers proceeding to Bangladesh	In Foreign Currency Notes and Coins up to equivalent of INR 100 for a person.

It is necessary to verify from the traveler's tickets that:

• They are traveling to the particular destination and are about to leave India and that they are eligible for sale according to the destinations indicated on the tickets.
• The tickets should be confirmed and indicate that the date of departure is not later than 60 days from the intended release of Foreign Exchange.
  
  BASIC TRAVEL QUOTA
  With effect from 1st June, 2000 resident Indian citizens including infants are allowed to receive Foreign Exchange not exceeding US $5000 or its equivalent in aggregate, in one calendar year for one or more personal visits abroad (except to Nepal and Bhutan) as against the quantum of exchange allowed under BTQ (para 10 of FLM).

FOREX UNDER BUSINESS VISITS

• Eligible Travelers
• Documentation
• Quantum of Exchange
  
  
  ELIGIBLE TRAVELERS
  Those sponsored by firms / companies / organizations in India.
  Journalists deputed on short term assignments abroad by Newspapers / Journals.
  Self - employed professionals like Solicitors, Chartered Accountants undertaking visits abroad in connection with their profession.
  
  
  DOCUMENTAITON
  The traveler is required to produce a letter in duplicate from the sponsoring firm / company / organization or by himself / herself in the case falling under (c) above. The letter should cover the following points:
  
• Name, address, nationality and Passport no. of the traveler.
• Duration and nature of visits to each country.
• Amount of exchange required (not exceeding the quantum indicated below).
• Certificate that the expenses are being borne by the sponsor or by the traveler in the case falling under (c) above.
• In case requested as Special Allowance, the required documents are indicated below:
  
  The letter should include declaration that the traveler is a Chief / Senior Executive in their organization (indicating his / her designation) and that he / she is entitled to draw exchange at the Special Scale as per the rules of the organization. The original letter and duplicate should be retained for your records.

QUANRUM OF EXCHANGE
Maximum of USD 25000 on an general Scale up to USD 350 per day or Special Scale for Chief / Senior Executives like Chairman, Managing / Executive Director, etc is up to USD 500 per day.
ENTERTAINMENT ALLOWANCE

• Eligible Travelers
• Documentation
• Quantum of Exchange
  
  ELIGIBLE TRAVELERS
  Chief Executives of Export / Trading / Star Trading Houses -not exceeding US $ 5000 per trip.
  Officials of other firms / companies etc. - not exceeding US $ 2000.
  Travelers proceeding to Islamic Republic of Iran, Russian Federation and other with Foreign Currency Notes and coins up to their full entitlement; if the traveler so desires similarly exchange up to two weeks can be drawn in the form of Foreign Currency Notes and Coins.
  Sponsored by Trade Bodies such as Chamber of Commerce.
  
  
  DOCUMENTATION

Letter in duplicate from the sponsoring Firm/ Company/ Organization covering the following points:

• Name, address, nationality and Passport No. of the traveler.
• Duration and nature of visits to each country.
• Amount of exchange required (not exceeding the quantum indicated below).
• Certificate that the expenses are being borne by the sponsor or by the traveler in the case falling under (c) above.
  In case requested of Special Allowance the required documents are indicated below:
• The letter should include declaration that the traveler is a Chief/ Senior Executive in their organization (indicating his / her designation) and
• He / she is entitled to draw exchange at the Special Scale as per the rules of the organization
  
  QUANTUM EXCHANGE

Up to US $ 300 per day per person for a period.
BUSINESS VISITS AGAINST FOREIGN HOSPITALITY

• Documentation
• Quantum of Exchange
• Other Conditions
  
  DOCUMENTATION:
  Letter in duplicate covering following points:

• Name, address, nationality and passport number of the traveler.
• Country of visit and period of stay.
• Name and address of the host.
• Purpose of visit.
• Documentation evidence in support of full hospitality.
  
  QUANTUM OF EXCHANGE
  Up to US $ 500 if the visit is for a period not exceeding 10 days. If the period of visit exceeds 10 days, US $ 50 per day up to a maximum period of 45 days.

OTHER CONDITIONS

• The sale of Foreign Exchange is required to be made on personal application and identification of the traveler.
• While issuing travelers checks, the traveler is required to sign the checks in the presence of the authorized official.
• The foreign exchange is sold after verifying the passport and passage ticket held by the traveler.
• The sale of foreign exchange is required to be endorsed on the passport of the travelers. The stamp should indicate BTQ / Business Visit as the case may be over the stamp and signature of the office releasing foreign exchange.
• The traveler can also draw foreign exchange towards BTQ with the business exchange for the same visit.