HomeCirculars › RBI/2009-10/446

RBI Raises Forex Cash Limit for Travel to Select Countries

Current · Source: Reserve Bank of India · RBI/2009-10/446 · issued 04 May 2010 · ~1 min read
Quick answerRBI increased the foreign currency notes/coins limit from USD 2,000 to USD 3,000 for travellers to countries other than Iraq, Libya, Iran, Russia, and CIS republics, effective immediately.
The rule, in the simplest words
How it plays out — a real example

A forex & trade-finance officer in Indore is helping a customer who is flying to Dubai next week. The officer remembers the old rule allowed only USD 2,000 in cash, but now she can give the customer up to USD 3,000 in foreign currency notes, making it easier for the traveler to have cash for small expenses abroad.

What changed

The ceiling for selling foreign currency notes and coins to travellers proceeding to countries other than Iraq, Libya, Iran, Russia, and CIS republics was raised from USD 2,000 to USD 3,000. This applies to Authorised Dealers and Full Fledged Money Changers without prior RBI permission.

What it means for you

Banks and money changers can now sell up to USD 3,000 in cash per traveller for most destinations, up from USD 2,000, easing cash availability for outbound travellers. Limits for Iraq/Libya (USD 5,000) and Iran/Russia/CIS (full amount) remain unchanged.

What you must do

Who it affects

Authorised Dealers in foreign exchange, Full Fledged Money Changers, Travellers to countries other than Iraq, Libya, Iran, Russia, and CIS republics

❓ Common questions

What is the new limit for foreign currency notes and coins for travel to most countries?

The limit has been increased from USD 2,000 to USD 3,000 per traveller, effective immediately.

Are there any countries with different limits?

Yes, for Iraq and Libya the limit remains USD 5,000, and for Iran, Russia, and CIS republics, full foreign exchange can be released in cash.

📜 Read the original circular — full text as issued by RBI
RBI/2009-10/446 A.P. (DIR Series) Circular No. 50 A.P. (FL Series) Circular No. 7 May 4, 2010 To All Authorised Persons in Foreign Exchange Madam / Sir, Release of Foreign Exchange for Visits Abroad – Currency Component Attention of  Authorised Persons in foreign exchange is invited to A.P.(DIR Series) Circular No. 19 dated October 30, 2000 and A.P. (DIR Series) Circular No.11 [A.P. (F.L. Series) Circular No.1] dated November 13, 2001 , in terms of which Authorised  Dealers and Full Fledged Money Changers are permitted to sell foreign exchange in the form of foreign currency notes and coins, up to USD 2,000 or its equivalent, to the travellers proceeding to countries other than Iraq, Libya, Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States. The existing limits have been reviewed and it has been decided to increase this ceiling, with immediate effect, to USD 3,000 (US Dollar Three thousand only) to the travellers proceeding to these countries, without the prior permission from the Reserve Bank. Authorised Dealers and Full Fledged Money Changers may accordingly sell foreign exchange in the form of foreign currency notes and coins, up to USD 3,000 or its equivalent, out of the overall foreign exchange released. 2.  Authorised Dealers and Full Fledged Money Changers may, as hitherto, continue to sell foreign exchange in the form of foreign currency notes and coins up to USD 5,000 or its equivalent to the travellers proceeding to Iraq or Libya, out of the overall foreign exchange released and full foreign exchange may be released in the form of foreign currency notes and coins to the travellers proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States. 3.  Authorised Persons may bring the contents of this circular to the notice of their constituents and customers concerned. 4. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, (Salim Gangadharan) Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/446 · issued 04 May 2010. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Who does what — compliance checklist
🏦 Branch Manager
  • Update internal systems and teller limits to reflect the new USD 3,000 cash ceiling for general travel destinations.
📜 Compliance
  • Brief forex staff on the revised limits and ensure compliance with unchanged higher limits for Iraq, Libya, Iran, Russia, and CIS.
  • Inform customers and constituents about the increased cash component for foreign travel.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Branch Manager at a bank this circular applies to (Authorised Dealers in foreign exchange, Full Fledged Money Changers, Travellers to countries other than Iraq, Libya, Iran, Russia, and CIS republics), your first concrete step on “RBI Raises Forex Cash Limit for Travel to Select Countries” is: “Update internal systems and teller limits to reflect the new USD 3,000 cash ceiling for general travel destinations.” (RBI issued this 04 May 2010).

  1. Circular: RBI/2009-10/446 -- RBI Raises Forex Cash Limit for Travel to Select Countries
  2. Issued: 04 May 2010
  3. Action required: Update internal systems and teller limits to reflect the new USD 3,000 cash ceiling for general travel destinations.
  4. Action required: Brief forex staff on the revised limits and ensure compliance with unchanged higher limits for Iraq, Libya, Iran, Russia, and CIS.
  5. Action required: Inform customers and constituents about the increased cash component for foreign travel.
  6. Owner: ____________ Target date: ____________
  7. Board/committee approval needed? Y / N
  8. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5648&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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