March 20, 1999

A.D.(M.A. Series) Circular No.7
A.M.(F.L. Series) Circular No.1
A.M.(R.L. Series) Circular No.1

To

Dear Sirs,

Attention is drawn to paragraphs 7D.5 of Exchange Control Manual, paragraph 5(i) of Memorandum FLM and paragraph 6 of Memorandum RLM, and also to Reserve Bank Notification No.FERA 168/95 RB dated 5th June 1995, in terms of which, persons bringing in foreign exchange in the form of foreign currency/bank notes and travellers cheques are required to declare them to the Customs authorities in Currency Declaration Form (CDF), if the aggregate value thereof exceeds U.S.$ 10,000 or its equivalent and/or the value of foreign currency notes exceeds U.S.$ 2,500 or its equivalent.

2. It has now been decided that the requirement of declaration of foreign currency to the Customs authorities should apply only where aggregate value of the foreign exchange brought in by travellers coming to India in the form of currency notes/bank notes and travellers cheques at any one time exceeds U.S.$ 10,000 (U.S. dollar ten thousand) or its equivalent and/or the aggregate value of foreign currency notes brought in at any one time exceeds U.S.$ 5,000 (U.S. dollar five thousand) or its equivalent. Reserve Bank has accordingly amended its Notification No.FERA.168/95 RB dated 5th June 1995 referred to above vide its Notification No.FERA.192/99-RB dated 9th March 1999 (copy enclosed). The Form CDF for declaration of foreign currency notes/travellers cheques has also been revised.

3. The following consequential amendments may be carried out in the Exchange Control Manual, Memorandum FLM and Memorandum RLM:

1. In paragraph 7D.5, the words ‘U.S.$ 2,500 or its equivalent’ appearing in the 6th line may be substituted by the words ‘U.S.$ 5,000 or its equivalent’.

1. In Appendix III Reserve Bank Notification No.F.E.R.A.81/89-RB dated 9th August 1989 under Section 13 may be replaced by Slip 1.
2. In Appendix IV the existing Form CDF may be substituted by new Form CDF as per Slip 2.

4. Authorised dealers may bring the contents of this circular to the notice of their concerned constituents.

5. The directions contained in this circular have been issued under Section 73(3) of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and any contravention or non-observance thereof is subject to the penalties prescribed under the Act.

Yours faithfully,

Additional Chief General Manager

In pursuance of the Notification of the Government of India, the Ministry of Finance No. F.1/107/EC/73 dated the 1st January 1974 and in supersession of the Notification of Reserve Bank of India No. F.E.R.A.168/95-RB dated 5th June,1995, the Reserve Bank is pleased -

1. to permit any person to send into India without limit foreign exchange in any form other than currency notes, bank notes and travellers cheques;
2. to permit any person to bring into India from Nepal, currency notes of the Government of India and Reserve Bank of India notes (other than notes of the denominations of above Rs.100/-);
3. to permit any person who is a resident of India and had gone out of India on a temporary visit, to bring into India at the time of his return from any place outside India (other than Nepal), currency/notes of the Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.1000/- which he had taken out while leaving India for a temporary visit;
4. to permit any person to bring into India from any place outside India without limit foreign exchange (other than unissued notes);

Provided that the permission contained in Clause (iv) above to bring foreign exchange into India shall be available to any such person only if he makes, on arrival in India, a declaration to the Customs authorities in such form as may be specified by the Reserve Bank in this behalf, of the particulars of such foreign exchange brought in by him;

Provided further that it shall not be necessary to make such declaration where the aggregate value of the foreign exchange brought in by such person in the form of currency notes, bank notes or travellers cheques at any one time does not exceed U.S.$ 10,000 (U.S. dollars ten thousand) or its equivalent and/or the aggregate value of foreign currency notes brought in by such person at any one time does not exceed U.S.$ 5,000 (U.S. dollar five thousand) or its equivalent.