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. Source: http://www.nrirealtynews.com/nri-banking/fema-rules.php FEMA prohibits dealings in foreign exchange except through an authorised person. Similarly, without the prior approval of the RBI, no person can make any payment to any person resident outside India in any manner other than that prescribed by it. The Act restricts non-authorised persons from entering into any financial transaction in India as consideration for or in association with acquisition or creation or transfer of a right to acquire any asset outside India. 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. The passenger should not have an the aggregate value of the foreign exchange brought in by the passenger should not exceed U.S.$ 10,000/- or its equivalent in the form of currency notes, bank notes, or travellers cheques or the value of foreign currency notes does not exceed U.S.$ 5,000 or its equivalent. 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 The traveler should possess a valid passport authorising travel to the countries proposed to be visited, and a ticket issued for a journey to those countries. A traveler can draw foreign exchange for private visits, business visits, participation in conferences/seminars, specialised training, study tour, higher studies, medical treatment or for employment/emigration abroad, etc. The ticket held by the traveler should be for a journey commencing not later than sixty days from the date of withdrawal of foreign exchange. A person can purchase foreign exchange for travel abroad against payment in cash if the rupee equivalent payable by him does not exceed Rs. 50,000. If the rupee value of foreign exchange exceeds Rs. 50,000, the entire payment should be made by way of a crossed cheque drawn on applicant's bank account or the bank account of the firm/company sponsoring the visit. Payment in such cases can also be made in the form of a banker's cheque/pay order/demand draft. 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 The sponsoring firm/company/organization (the applicant in cases of self-employed professionals) should make an application for the release of exchange to an authorized dealer or an authorized full-fledged money-changer by a letter, in duplicate, indicating the name, address, nationality, passport number, duration, nature of visit to each country, foreign exchange required and a certificate from the employer stating that the expenses are being borne by them. [The statement should include details of all remittances, exceeding USD 25,000 from India or payments from abroad in connection with imports, including advance payments, delayed payments, etc. irrespective of the source of funding (i.e. EEFC accounts/foreign currency accounts maintained in India and abroad, payments out of external commercial borrowings, foreign investments in the shares of importers etc.)] Exchange up to U.S. $ 25,000 can be released by authorized dealers regardless Of the duration of the visit. Participation in International Conferences/Seminars 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.