Besides authorised dealers, certain established firms,

hotels and other organisations have been granted money-changers licences by Reserve Bank to deal in foreign currency notes, coins and travellers cheques, subject to directions issued to them from time to time. Certain authorised dealers have also been permitted to operate exchange bureaux at important airports and seaports for the purpose of providing money changing facilities to travellers. The Memoranda of Instructions FLM and RLM contain the directions issued by Reserve Bank to full-fledged and restricted money changers respectively. The regulations governing purchase and sale of foreign currency notes, coins, etc. by authorised dealers and their exchange bureaux are laid down in the succeeding paragraphs.

NOTES: A. By its Notification No. FERA.48/77-RB dated 24th November 1977, Reserve Bank has permitted any person to receive foreign currency notes directly from out of India, provided the foreign currency so received is offered for sale to an authorised dealer within seven days of its receipt.

B. By its Notification No. FERA.158/94-RB dated 24th February 1994, Reserve Bank has permitted any person to receive payment in any foreign currency/ies from any person resident outside India and who is on a visit to India for services rendered or in settlement of any lawful obligation, provided that any such foreign currency/ies in excess of U.S.$ 2000 (US Dollars Two thousand) or its equivalent, taking into account existing foreign currency holdings, if any, is sold to an authorised dealer within seven days from its receipt.

C. Reserve Bank has granted general permission vide its Notification No. FERA.127/93-RB dated 22nd March 1993 to persons, who have entered into agreements with (one or more) credit card servicing banks/organisations in India, to receive payment in Indian rupees for goods and/or services sold in India against charge slips raised in Indian rupees on internationally recognised credit cards of persons resident outside India, provided that the dues are realised in foreign exchange through an authorised dealer from the overseas credit card issuing institutions. Charge slips raised on add-on/supplementary/ sponsored credit cards issued overseas in favour of persons resident in or outside India are also covered by the above Notification.

D. In pursuance of Central Government Notification F.No.10/22/90-NRI Cell dated 17th July 1992, persons in or resident in India can hold foreign coins without any limit. Residents are also permitted to hold foreign currency/currencies upto a value equivalent of U.S.$ 2000 for personal purpose inclusive of foreign currencies, if any, held for numismatic purpose. The amount of foreign currencies held as stated above for personal purpose can also be taken out of India. [cf. paragraph 6G.3(i)]