Indians can take $5K in cash abroad post new norms to help avoid exchange fee
The Indian government increased purchase limit from duty-free stores in Indian currency from Rs 5,000 to Rs 25,000, which will help you avoid paying excessive exchange fee to your credit card issuer when you return from your overseas trip.
The Central Board of Excise & Customs has amended the rules for those travelling to or from India to countries other than Bhutan and Nepal. Last December, all Indian residents and foreigners, other than those from Pakistan and Bangladesh, were allowed to carry Rs 25,000 in cash and the rules regarding purchase from duty-free shops have been changed to align them with the cash limit.
This means that you can pay up to Rs 25,000 in Indian currency and the rest can be paid for in foreign currency.
While Indians can carry up to $5,000 cash without any disclosure requirements, the revised baggage rules allow duty-free import of chocolates, apparel, toys and other products of up Rs 50,000 per individual. Certain goods such as gold and silver and flat screen TV sets are outside this Rs 50,000 cap and attract duty.
In recent months, the government has eased the limit on purchases made overseas and from duty-free stores. It had recently dropped the requirement of spending at least three nights overseas to be able to access duty-free stores.
In its latest notification, CBEC said it has also asked duty-free stores to display prices in Indian rupees in addition to other currencies.