Forex = foreign exchange market (FX, or currency market). It is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines the foreign exchange rate of various currencies across the world. It includes all aspects of buying, selling and exchanging currencies at current or determined prices in your country.
How much foreign currency you are allowed to carry?
Travelers were allowed to carry foreign currency in notes/coins only up to $2000 per trip before 2015. However, this limit has been revised and now a traveler can carry up to $3000 (or its equivalent) on each passport per trip (only the active passport). That’s it? You may think. No, that’s not it. RBI does understand that one may require more money while they are on a longer trip. A traveler can carry balance amount/more Forex in the form of traveller’s cheque, prepaid cards or banker’s draft. Carrying money on a Forex Card is the best option according to us; it’s easy to carry, convenient to use, safe and secure. However, the decision should be made based on the country of visit as not many countries will have facilities to swipe cards.
What are Forex cards?
Forex cards are pre-loaded cards that allows you to access money in the required regional currencies. You can top them up depending on your requirements. The card allows you to withdraw cash in foreign currency, check your balance and shop too.
What if you want to carry more Forex in cash?
As a traveler you may have to carry more than $3000 at times, well the good news is that you can do that, but you need to disclose that amount to immigration/customs officials before traveling. You may also need to take permission from RBI to carry more than the specified limit.
You travel often, what is the maximum amount that you can carry in a year?
The permissible amount to carry in Forex is up to $250000 per year. This entire amount could be on your Forex card. However, cash that you can carry per traveller is limited to $3000 or equivalent. To carry more amount than this limit, you need to take prior approval from RBI.
Where can I find Forex rates?
There are many online portals which allows you to see current market rates, you can find the live rates on following link.
So folks, this is what you need to know on Forex for starters, depending on individual case and situation, rules may vary. In our experience, it is always a good practice to find out latest rules around Forex before traveling.