RBI had earlier issued guidelines on the Foreign Currency Possession and Assets Held Abroad (2015 Regulations), which govern how Indian residents and authorised entities can hold foreign currency under FEMA, 1999.
Nidhi | Apr 26, 2025 |
The Reserve Bank of India (RBI) had earlier issued guidelines on the Foreign Currency Possession and Assets Held Abroad (2015 Regulations). These rules govern how Indian residents and authorized entities can hold foreign currency under FEMA, 1999. Let us understand these guidelines.
No Limit for Authorised Entities: According to Section 2(c) of FEMA, 1999, authorised dealers, money changers, offshore banking units, and others approved under Section 10(1) can hold unlimited foreign currency, as allowed by their license.
1. Foreign Coins: Anyone can keep foreign coins, and there is no limit on this.
2. Limit for Indian Residents: Indian residents can keep up to USD 2000 (or its equivalent) in foreign currency notes, bank notes, and traveller’s cheques. However, it is only allowed if the foreign exchange was received through the following sources:
Special Exemption For Non-permanent Residents
An indian Not permanently resident (persons living in India for specific employment or assignment for not more than three years) is allowed to hold any amount of foreign currency brought legally from abroad, without limit.
This rule helps to promote compliance among Indian residents who have undeclared foreign assets. According to the Regulation 4, an Indian Resident who have undisclosed foreign assets, informs about it under Section 59 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (hereinafter referred as Black Money Act, 2015) and pays the tax amount and the penalty under Chapter VI of the Act, will not face any legal consequences under the Act.
However, if such a person wants to hold such foreign assets, they must take approval from the RBI within 180 days from the date of declaration. Whether RBI approval is needed depends on the current FEMA rules.
The declaration is required to be made in Form-6, under Rule 9(1) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015, and submit it to the Principal Commissioner or the Commissioner of Income Tax Act.
Not following these guidelines can result in various consequences, such as penalties, hefty fines and criminal proceedings for violating the rules.
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
![membership ad copy 2[1]](/cdn-cgi/image/width=350,height=350,fit=contain,format=webp,gravity=auto,metadata=none,quality=75/wp-content/uploads/2025/04/membership-ad-copy-21.png)
