Foreign Exchange Management (Possession and Retention of Foreign Currency) Regulations, 2015

Flashcards covering the limits, regulations, and definitions regarding the possession and retention of foreign currency and coins in India.

Foreign Exchange Management (Possession and Retention of Foreign Currency) Regulations, 2015

The specific regulations that deal with the limits on the possession and retention of foreign currency or foreign coins.

Regulation 3 (i)

Provides for the possession of foreign currency and coins without limit by an authorised person within the scope of his authority.

Regulation 3 (ii)

Specifies that any person may possess foreign coins without limit.

Retention limit for a person resident in India

A resident in India may retain foreign currency notes, bank notes, and foreign currency travelers cheques not exceeding US $2000$ or its equivalent in aggregate.

Permissible sources for retained foreign exchange

Foreign exchange acquired during a visit outside India for services not arising from Indian business, small payments or gifts from non-residents, or unspent travel amounts from an authorised person.

Regulation 4

Deals with the possession of foreign exchange by a person resident in India but not permanently resident therein.

Possession rule for non-permanent residents

May possess without limit foreign currency notes, bank notes, and travelers cheques if acquired while resident outside India and brought into India legally.

Not permanently resident

Defines a person resident in India for employment of a specified duration or for a specific job or assignment, the duration of which does not exceed $3$ years.