As per the regulations of the Reserve Bank of India, Currency exchange vendors are only permitted to offer USD 100,000 to Indians travelling abroad on emigration. The vendors are permitted to sell USD 100,000 or the equivalent amount in any other foreign currency to the travelers who are emigrating abroad.
The Reserve Bank of India is empowered by the Government of India to set in place regulations for currencies and transactions. These regulations are followed by all financial institutions in India including banks and companies offering financial services. Such rules have affixed a ceiling on the amount of Forex that can be carried by a person travelling abroad for emigration.
Before purchasing the foreign currency, proper documentation needs to be completed, so that you can purchase Forex. Without such documentation, you will be limited to buy currency online within the limit of a tourist. To complete the documentation for the purchase of the currency for emigration, self-declaration has to be provided. The limit of USD 100,000 is provided so that you are able to meet incidental expenses in the host country. As you are relocation to a different country, you will encounter many foreseeable and unforeseeable expenses. The high limit of foreign exchange is permitted to be able to sustain such expenses.
- Limit for Forex
You can buy foreign exchange within the maximum available limit depending the purpose of travel. The limit for travel related to emigration is far higher than for any business trip or personal holiday. The limit on the foreign exchange currency is not conditional to the duration of the trip, but on the reason of travel.
For emigration to another country, you can buy up-to USD 100,000 from online Forex dealers. If the host country has a different currency, you can buy the equivalent of this amount in any other international currency for the same purpose. For instance, the equivalent of USD 100,000 can be purchased in Singapore Dollars, Australian Dollars, British Pounds, and etc. depending on the country of travel.
- Documentation for Emigration
The Reserve Bank of India has authorized the Forex dealers to provide foreign currency to persons travelling abroad for emigration. The authorized currency limit can be purchased from the dealers for this purpose after completing the formalities and documentation. After the process is completed, the dealers provide the Forex of the host country.
- Approved Forex
You can buy the approved amount of Forex from any authorized foreign currency exchange dealer. As per the guidelines of the Reserve Bank of India, foreign currency exchange can only be purchased from any person or company authorized to for foreign currency exchange services. Other dealers or persons who do not have such authorization are not permitted to sell Forex. One should not purchase Forex from unauthorized dealers under any circumstances. Not only is it prohibited to purchase Forex from such unauthorized sellers, but it is also illegal. Hence, you should always purchase Forex from any authorized dealer and retain the receipt of the purchase during your travel.
Forex should always be purchased from online currency exchange services. These online vendors have been authorized to be provide Forex services in India. The online dealers offer the best currency exchange rates in India and these dealers offer the foreign currency services in India.
- Forex Card vs Credit Card
Debit cards and Credit cards issued by Banks in India can be used for all transactions abroad. However, it is substantially more expensive to use these cards for making payments or any transactions abroad. Even if you have a credit card or debit card which is accepted abroad, you must place an order for a prepaid travel card with the online Forex dealer. The bank charges on the use of a debit or credit card abroad is extremely high, it incurs higher cost for the entire transaction. The conversion rate of Indian the currency to the international currency is also higher than the conversion rates offered by the online Forex vendors.
With such added costs and charges, the overall expenditure of money is much higher while using a credit card or debit card as compared to a prepaid travel card. The exchange rates offered by the vendors is lower than the Forex rates exchange charged by the banks for the transactions made using the credit card. The vendors give the best conversion rates available in India. Moreover, there are no hidden costs for using these Forex cards, whereas the banks charge a hefty fee for the transaction made using the debit or credit card and these charges are in addition to high exchange rate.
The same transaction or payment made using an international currency prepaid card is much cheaper. The Forex purchased from the Forex vendor can be used to make payments like a debit or credit card, or used in any ATM / card machines, to make a transaction. With the acceptance in the ATM machines and card machines, foreign currency can be withdrawn from the ATM to use currency notes.
