RBI: The Reserve Bank of India (RBI) has introduced a significant service for travelers. Indian residents can now exchange rupees for foreign currency at forex counters situated in the departure area of international airports. This service was previously limited, but it has now been broadened to ensure all travelers can access it.
According to the RBI’s updated regulation, rupees can now be exchanged at forex counters after passing through immigration and customs, meaning in the security hold area or duty-free zone. This implies that if you haven’t exchanged your money beforehand, you can now conveniently do so just before boarding your flight.
What was the initial rule?
In the past, forex counters in these restricted zones provided service only to Indian travelers. The RBI has revised the rules to enhance accessibility to these counters.
Who stands to gain?
This decision will primarily benefit travelers who need to exchange foreign currency at the last minute or those who were unable to do so earlier. They will now find it easy to do this within the airport. The RBI has instructed all authorized money changers to inform their customers about this new regulation.
Under which legislation?
This modification has been enacted under the Foreign Exchange Management Act (FEMA) 1999, which regulates the rules concerning foreign currency in India. “After a review, it has been decided that residents (including non-residents) will now be able to exchange Indian rupee notes at the foreign exchange counters set up in the departure halls of international airports,” the RBI said in a circular. The central bank said the Master Directions on Money Changing Activities are being amended in line with this decision.
Meanwhile On Monday, following the Reserve Bank’s initiatives aimed at curbing speculation and reducing rupee volatility, the rupee gained 14 paise to close at 93.04 (provisional) against the US dollar. Forex traders said that while the RBI’s measures have proven to be quite positive for the rupee, continued foreign capital outflows, a strengthening dollar, and rising crude oil prices amid the volatile geopolitical situation continue to put pressure on the rupee. The RBI tightened its regulations to curb speculative positions and set a limit on banks’ net open positions at $100 million. Let us also tell you what kind of data the rupee is seeing after the currency market closes.
