RBI Tightens Forex Counter Locations at International Airports
Current · Source: Reserve Bank of India · RBI/2011-12/234 · issued 25 Oct 2011 · ~1 min read
Quick answerRBI mandates that forex counters in arrival halls must be after customs, or between immigration and customs (only buy forex, sell INR, issue encashment cert). Departure counters must be before customs/immigration. Non-compliant counters must relocate by Dec 31, 2011.
The rule, in the simplest words
Forex (foreign money exchange) counters in the arrival hall must be placed after the customs desk (where bags are checked), or between immigration (passport check) and customs, but then they can only buy foreign money and sell Indian rupees, and must give a certificate for the exchange.
Forex counters in the departure hall must be placed before the customs or immigration desk (whichever comes first), and a sign must remind non-residents (people from other countries) that this is the last place to hold Indian rupees.
Any forex counter that does not follow these location rules must move to the correct spot by December 31, 2011, or face penalties under FEMA (the law for foreign money rules).
How it plays out — a real example
Ravi, a forex & trade-finance officer in Indore, also manages a small forex counter at the international airport. He checks his arrival counter and finds it is between immigration and customs, but it was selling foreign currency to travelers. He immediately stops that and tells his team they can only buy foreign money and sell rupees there, and must give every customer an encashment certificate. He also calls the airport authority to put up a sign at his departure counter reminding non-residents about the limit on Indian rupees they can carry out.
What changed
RBI reviewed compliance of forex counters at international airports and issued specific location rules. Arrival counters ideally after customs; if between immigration and customs, they can only buy foreign currency and sell INR, with mandatory encashment certificates. Departure counters must be before customs or immigration, with signage reminding non-residents about INR possession limits.
What it means for you
Banks and money changers must ensure their airport counters are correctly placed to avoid penal action under FEMA. This impacts operational costs and logistics for relocating counters by the deadline. Non-compliance could lead to penalties under Section 11(3) of FEMA.
What you must do
Audit all forex counter locations at international airports against the new RBI guidelines.
Relocate any non-compliant counters to meet the December 31, 2011 deadline.
Ensure arrival counters between immigration and customs only buy forex and sell INR, and issue encashment certificates.
Coordinate with airport authorities to put up signage at departure counters about INR possession limits for non-residents.
What is the deadline for relocating non-compliant forex counters?
All counters not conforming to the new location rules must be relocated by December 31, 2011.
What activities are allowed for counters between immigration and customs in arrival halls?
Such counters can only purchase foreign currency and sell Indian Rupees, and must issue encashment certificates to customers.
What happens if we don't comply with these guidelines?
Non-compliance attracts penal provisions under Section 11(3) of the Foreign Exchange Management Act, 1999.
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/234
A.P. (DIR Series) Circular No. 38
October 25, 2011
To,
All Authorised Persons in Foreign Exchange
Madam/ Sir,
Memorandum of Instructions governing money changing activities-
Location of Forex Counters in International Airports in India
Attention of Authorised Persons is invited to the Memorandum of Instructions governing money changing activities, issued vide A. P. (DIR Series) Circular No. 57 [A.P. (FL/RL Series) Circular No. 04] dated March 9, 2009 .
2. On a review relating to compliance of the Foreign Exchange Counters (full-fledged branches/ extension counters) opened by Authorised Dealer Category-I banks, Authorised Dealers Category-II and Full Fledged Money Changers beyond the Domestic Tariff Area in international airports in India, it has been decided as under :
(a) Foreign Exchange Counters in the arrival halls in international airports in India shall ideally be established after the Customs Desk (Green Channel/Red Channel). However, Foreign Exchange Counters may also be established between the Immigration Desk and the Customs Desk in international airports in India, subject to the condition that these counters shall only purchase Foreign currency and sell Indian Rupees (INR) and "Encashment Certificates" shall invariably be issued by the money changers to the customers.
(b) Similarly, Foreign Exchange Counters in the departure halls in international airports in India shall be established only before the Customs Desk or the Immigration Desk, whichever comes first. Putting up suitable display at these counters, reminding the passengers that the area is the last point for non-residents to possess Indian Rupees (INR) may be followed up with the Airport Authorities.
3. The Foreign Exchange Counters of Authorised Dealers Category-I banks, Authorised Dealers Category-II and Full Fledged Money Changers, not conforming to the above, should be relocated in accordance with the above instructions, latest by December 31, 2011 .
4. Authorised Persons may bring the contents of this circular to the notice of their constituents concerned.
5. The directions contained in this Circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and non-compliance with the guidelines would attract penal provisions of Section 11(3) of the Act ibid.
Yours faithfully,
(Meena Hemchandra)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/234 · issued 25 Oct 2011. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Branch Manager at a bank this circular applies to (Authorised Dealer Category-I banks, Authorised Dealers Category-II, Full Fledged Money Changers, Airport authorities), your first concrete step on “RBI Tightens Forex Counter Locations at International Airports” is: “Audit all forex counter locations at international airports against the new RBI guidelines.” (RBI issued this 25 Oct 2011).
Circular: RBI/2011-12/234 -- RBI Tightens Forex Counter Locations at International Airports
Issued: 25 Oct 2011
Action required: Audit all forex counter locations at international airports against the new RBI guidelines.
Action required: Relocate any non-compliant counters to meet the December 31, 2011 deadline.
Action required: Ensure arrival counters between immigration and customs only buy forex and sell INR, and issue encashment certificates.
Action required: Coordinate with airport authorities to put up signage at departure counters about INR possession limits for non-residents.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6780&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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