Mumbai: Those extra charges incurred while using a credit card or travellers cheque during trips abroad can now be reduced as the Reserve Bank of India (RBI) on Wednesday relaxed forex norms to allow people doing international travel to carry currency worth $3,000. Till now, foreign exchange that one could carry on trips abroad, without prior permission, was capped at $2,000. “The existing limits have been reviewed and it has been decided to increase this ceiling, with immediate effect, to $3,000,’’ said the RBI circular issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999. Under the current exchange rate, $3,000 amounts to Rs 1.35 lakh. “The earlier cap of $2,000 meant one had to rely on travellers cheque or credit cards even for short trips. It added to the expenditure as these modes of payment came with additional charges,’’ says Sudhakara Reddy, a frequent flyer and president of Air Passengers’ Association of India. For instance, when using credit card abroad, one pays Rs 2 extra for every US dollar, as foreign currency charge, over and above the accepted exchange rate. “The higher forex cap will be beneficial for travellers going on short trips as they can now avoid these extra charges by having ready currency at hand.’’ These provisions will not apply to persons going to certain specified countries such as Iraq, Libya, Iran, Russia and the Commonwealth countries. The notification further said that persons going to Libya or Iraq will continue to get up to $5,000 or its equivalent in other currencies while the existing provisions for travellers to Iran, Russia and Commonwealth countries will remain unchanged. In case of people going abroad for a purpose other than a private visit, it is not mandatory for authorised dealers to endorse the amount of foreign exchange sold for such travel on the traveller’s passport. However, when travellers are availing of basic travel quota (BTQ), the dealer should endorse the amount on the traveller’s passport under the authorised dealer’s stamp, date and signature.
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