What is the yearly limit under the Liberalised Remittance Scheme?
As published in the RBI's FAQ on the scheme, every resident individual, including a minor, may remit up to USD 250,000 in a financial year (April to March) for permitted purposes, which include private and business travel, study and medical treatment. All purposes share the one limit. PAN is required, and the scheme is not open to companies, firms, HUFs or trusts.
How much of it can be cash?
As published by the RBI, travellers to most countries may buy foreign currency notes and coins of up to USD 3,000 per visit; the balance goes on a store-value card, travellers cheque or banker's draft. Travellers to Iraq and Libya may take up to USD 5,000 in notes, and travellers to Iran, Russia and other CIS countries may take the full amount in notes.
| Destination | Notes and coins per visit |
|---|---|
| Most countries | Up to USD 3,000 |
| Iraq and Libya | Up to USD 5,000 |
| Iran, Russia and other CIS republics | The full entitlement, up to USD 250,000 |
The RBI also says that when you buy foreign exchange of ₹50,000 or more, the whole amount must be paid by cheque, draft, card or similar, not in cash.
What do you declare when you come back to India?
As published by the RBI, you declare foreign exchange to Customs on a Currency Declaration Form on arrival if currency notes alone exceed USD 5,000, or notes and travellers cheques together exceed USD 10,000. A resident returning from a temporary visit may bring back up to ₹25,000 in Indian currency notes, with separate rules for Nepal and Bhutan.
What happens to foreign currency left over after the trip?
As published by the RBI, unspent foreign currency notes and travellers cheques must be surrendered to an authorised dealer within 180 days of return. You may keep up to USD 2,000 in notes or travellers cheques for a future trip, and foreign coins without limit.
When does tax collected at source apply?
As published by the Income Tax Department, tax collected at source applies to remittances under the Liberalised Remittance Scheme above a yearly threshold and to the purchase of an overseas tour package, meaning a package that combines at least two of an international ticket, a hotel stay or similar costs. The rate depends on the purpose and is set by the Income-tax law.
As the Income Tax Department explains, the credit goes to the person it was collected from and shows in their Form 26AS. Because rates and thresholds have changed with recent Finance Acts, Arika gives the figure that applies to your transaction in writing before you pay.
Where Arika fits
Arika Forex, part of Arika Group in Goregaon (East), Mumbai, buys and sells foreign currency for travel, with the RBI paperwork handled and delivery to the door across Mumbai. It tells you before you pay which limits and which tax collected at source apply to your trip.
Currency exchange in MumbaiSources
This guide summarises the RBI's and the Income Tax Department's published FAQs; it is not tax advice. Rates of tax collected at source are set by the Income-tax law and change with Finance Acts.
Official and primary pages this guide was checked against on 14 November 2026. Figures are as published by each body; Arika confirms the current figure in writing when you apply.