Circular No.78/2000 date 18-9-2000F.No.495/17/2000-Cus.VI
Subject : Business visits abroad-foreign exchange - not to be endorsed on passport
The Reserve Bank of India vide D.O. No. EC.CO. PCD 20/15.02.68/99-2000 dated August, 2000 has informed that the practice of endorsement on the passports of the foreign exchange released to the traveler is being dispensed with in the case of all types of business travellers. As regards the individual travellers on private visits, the endorsement of foreign exchange released will continue as there is a prescribed ceiling of Basic travel Quota per calender year.
The change is proposed to come into effect from 18th September, 2000. A copy of RBP's letter referred to above is enclosed for information and necessary action.
Enclosure :
Chief General Manager (Reserve Bank of India)
D.O.No. EC.CO. PCD.20/15/02.68/99-2000 dated August, 2000.
Dear Shri Mohile,
Exchange Control regulations presently require authorised dealers and full fledged money changers to endorse on the passports the foreign exchange released to the travellers. The practice has been in vogue for quite sometime. There have been frequent representations from various quarters for dispensing with the requirement of endorsement on the passport.
You are aware that the new regulations under Foreign Exchange Management Act, 1999 (42 of 1999) have come in force with effect from 1 st June, 2000. In the Rules and Regulations made under the Act, restrictions on release of foreign exchange for travel abroad have been considerably liberalised. Under current Rules a person going on business trips can avail of exchange upto US$ 25,000 from an authorised dealer or a full-fledged money changer. Further, in the case of business travellers who are travelling on official business, the foreign exchange is drawn against payment made by the companies or the Government department or Public Sector Undertakings etc. As such in case of need the relevant details can be obtained from the concerned organisation. Similarly, where exchange has been drawn against International Credit Card full details are available with the card issuing organisation. In order to make the entire process of release of foreign exchange for travel abroad more customer friendly and to minimize the number of entries in the passports it is necessary that the requirement of endorsement on passports should be dispensed with.
In view of the foregoing we are dispensing with the requirement of endorsing the release of foreign exchange on passports in the case of all types of business travel. As regards the individual travellers on private visits i.e. travellers availing of Basic Travel Quota (BTQ), the practice of endorsement of foreign exchange released will continue as there is a prescribed ceiling per calender year.
We are proposing to introduce the change with effect from 18th September, 2000. You are requested to inform, suitably, all the Customs Officials of the changes being introduced to avoid inconvenience to travellers. On hearing from you we will issue suitable instructions to authorised persons (authorised dealers and full-fledged money changers).
We also request you to send us a copy of the letter addressed to Customs Offices/Check Posts for our record.
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