If you travelled abroad from India for the first time and had purchased foreign currency for the trip, you would likely have several questions about bringing foreign currency back to India. This blog has foreseen your thoughts and has compiled all you need to know about bringing foreign currencies to India.
Also Read: Forex Card or Cash Which is Best for International Trip?
How Much Foreign Currency Can I Carry as Cash to India?
An individual entering India from abroad has no restrictions on bringing foreign currency. However, they are required to declare currency to the Customs Authorities under certain circumstances:
- If the total value of the foreign currency in cash, bank notes, and traveller’s checks exceeds USD 10,000 or its equivalent.
- If the value of the foreign currency in cash alone exceeds USD 5,000 or its equivalent.1
How to Declare Foreign Currency in India?
Passengers with cash that exceeds their Duty-Free allowance are required to fill out a Customs Declaration Form and use the Red Channel. They also have the option to pre-declare dutiable currency to Indian Customs through the ATITHI mobile app.
Also Read: How Much Cash Can a Traveller Take In and Out of India?
How Much Foreign Currency Can an Indian Keep with Themself?
- After returning from international travel, a resident Indian can retain up to USD 2000 or equivalent as foreign currency notes, traveller’s cheques, or credit in their Resident Foreign Currency (Domestic) account.
- Any excess foreign exchange as currency notes or traveller’s cheques must be sold/exchanged within 180 days from the date of return to India.2
- Resident Indians can retain foreign currency as coins without limits.3
- The foreign currency kept with you (below USD 2000) can be utilised for your further international travels in future.
How to Convert Foreign Currency into Indian Rupees After Arrival in India
You can sell your foreign currency in India to authorised dealers like banks, exchange stores, or online platforms. In addition to markup, several banks and exchange stores charge service fees.
Therefore, opting for an online forex aggregator is the easiest and cheapest way to convert foreign currency to Indian Rupees. ExTravelMoney is one among the very few online forex aggregators in India, where you can compare the rates offered by banks and RBI-authorised exchange vendors near you and choose the best.
Here is a quick route map on how to sell currency with Extravelmoney;
Step 1. Visit extravelmoney.com.
Step 2. Choose the ‘Sell Currency’ option and enter the required foreign currency and amount.
Step 3. Enter your location, compare the quotes provided by foreign exchange stores near you, and choose the best.
Step 4. Prepare KYC documents as instructed by our customer care executive, who shall contact you as soon as your order is placed.
Step 5. Visit your selected store and exchange your foreign currency or have it door-delivered (if the store offers this service).
Tips for Selling Unused Foreign Currency in India
- When you sell the unused foreign currency with you, you shall only get an exchange rate below the mid-market rate.
- Foreign coins are not accepted for exchange by forex vendors in India.
- Exotic currencies are often not accepted by RBI-authorised forex vendors because they are rarely in demand. Even if they do, you will likely face a poor exchange rate. It’s better to exchange foreign currency for US Dollars while you are in the destination country and then sell the USD when you return to India.
- For better rates, monitor the mid-market rate, which is the exchange rate shown on Google. This rate represents the midpoint between the buying and selling prices of two currencies at a specific time. Knowing this rate helps you assess whether the markup (the additional fee charged by forex vendors) is reasonable.
Whether it’s understanding how much currency you can carry, retain, or sell, being informed helps avoid unnecessary trouble at customs or the forex counter. The process of converting your leftover currency is straightforward when done through reliable platforms. With ExTravelMoney, you can access the best exchange rates and complete your forex transactions with confidence and ease with our trusted forex partners.
Also Read: Travelling Abroad? Don’t Bring Back These 10 Foreign Currencies
FAQ
1. Do I need to declare foreign currency at customs when arriving in India?
You only need to declare foreign currency if its total value (in cash, bank notes, and traveller’s checks) exceeds USD 10,000 or if you’re carrying more than USD 5,000 in cash.
2. What’s the maximum amount of foreign currency cash I can bring into India without declaring it?
USD 5,000 is the maximum amount of foreign currency that an individual can carry as cash to India without declaring at the customs.
3. What happens if I do not declare foreign currency exceeding the duty-free limit?
Carrying more than the duty-free limit could lead to your currency being confiscated at customs, along with potential fines. To avoid such issues, it is essential to declare any amount exceeding the threshold.
4. Are there any charges for converting foreign currency to Indian Rupees?
Charges depend on your authorised exchange vendor. Some charge and some don’t. However, at Extravelmoney, our partnered banks and RBI-authorised exchange stores do not charge any service fees.
5. Can I keep leftover foreign currency for future international travel?
Yes, unused foreign currency exchange (below USD 2000) can be retained and utilised for future international trips.
Article Sources:
Ann Mariya Job is the Associate Content Writer at ExTravelMoney.com. Holding a Bachelor’s in Journalism, she excels in creating deeply researched, engaging, and crisp content. Her work helps readers understand the complexities of foreign exchange, overseas money transfers, and international travel.