Purchase of Foreign Currency in India: How to Buy and Sell
Buy foreign currency from an authorised bank or RBI-licensed money changer: up to USD 2,50,000 a year, notes up to USD 3,000 a trip, cash below ₹50,000.
Written by Rohan Mehta
Updated on 17 September 2026·6 min read
On this page9 sections
You can buy foreign currency in India from an authorised dealer bank or a full-fledged money changer licensed by the RBI, in person or online. A resident can buy up to USD 2,50,000 a financial year under the Liberalised Remittance Scheme (LRS), but notes for a trip are capped at USD 3,000 for most countries. Cash payment is allowed only when the total is below ₹50,000.
Key facts
| Rule | Position on 17 September 2026 |
|---|---|
| Who can sell you foreign currency | Authorised dealer (AD) Category-I banks, AD Category-II entities and full-fledged money changers (FFMCs) |
| Annual limit for a resident | USD 2,50,000 per financial year (April–March) under LRS, minors included |
| Foreign currency notes per trip | Up to USD 3,000 or equivalent; USD 5,000 for Iraq and Libya; up to the full LRS limit for Iran, Russia and CIS countries |
| Paying in rupee cash | Only if the total is below ₹50,000 |
| PAN | Mandatory for every LRS transaction |
| TCS from 1 April 2026 | Nil up to ₹10 lakh a year, then 20% for most purposes; 2% above ₹10 lakh for education and medical; 2% on tour packages from the first rupee |
| Foreign currency you may keep after a trip | Up to USD 2,000; the rest to be sold within 180 days of return |
| Customs declaration on arrival | Notes above USD 5,000, or all foreign exchange above USD 10,000 |
Where to buy foreign currency in India
Only an authorised person may sell you foreign exchange. The RBI names three kinds.
| Item | Details |
|---|---|
| AD Category-I banks. | Most commercial banks. They sell notes, forex cards and outward transfers. |
| AD Category-II entities. | Firms allowed to release foreign exchange for set purposes such as travel. |
| Full-fledged money changers. | Licensed by the RBI to buy and sell notes and to release exchange for business and private visits. |
Online forex sites are storefronts for these same entities. Before you pay, check which bank or money changer is actually selling to you. Do not buy from unlicensed dealers, however good the rate looks.
How to buy foreign currency: step by step
- Decide the form: currency notes for small cash needs, a forex card for spending, or a wire transfer for fees and remittances.
- Check the day’s reference rate. The RBI home page shows the FBIL rate for the US dollar, euro, pound, yen, dirham and rupiah.
- Ask two or three authorised sellers for their selling rate for your currency and form, including any fee and GST.
- Give your PAN and fill Form A2, declaring the purpose and that the money is yours.
- Pay. Below ₹50,000 you may pay in cash. From ₹50,000 upward, use a crossed cheque, banker’s cheque, pay order, demand draft, or debit, credit or prepaid card.
- Collect the notes or card and keep the invoice. You need it to match any TCS against your tax.
What foreign currency costs: buying and selling rates
Every seller has two prices. You buy at its higher selling rate and sell back at its lower buying rate. Cash has the widest gap. SBI’s card rates at 9:11 am on 16 September 2026 show the pattern.
| Currency | RBI reference rate | SBI notes: bank buys | SBI notes: bank sells | SBI transfer: bank sells |
|---|---|---|---|---|
| US dollar | ₹95.9433 | ₹94.30 | ₹96.90 | ₹96.35 |
| Euro | ₹110.7908 | ₹107.75 | ₹112.70 | ₹112.08 |
| British pound | ₹129.3204 | ₹125.95 | ₹132.05 | ₹130.76 |
At those rates, USD 1,000 in notes cost ₹96,900, about ₹957 more than the reference value. Selling the same USD 1,000 back would fetch ₹94,300. SBI’s card rates apply to deals of ₹10 lakh to ₹20 lakh, so smaller buyers should ask the branch. For a daily view, see exchange rates today or the USD to INR rate.
Tax collected at source when you buy
The seller collects TCS on LRS purchases above a threshold. The rates below apply from 1 April 2026, under the Income-tax Act, 2025.
| Purpose | TCS |
|---|---|
| Education funded by a loan from a financial institution | Nil |
| Education or medical treatment (other funding) | Nil up to ₹10 lakh; 2% above |
| Overseas tour package | 2% on the full amount |
| Other purposes, including a private trip bought as forex | Nil up to ₹10 lakh; 20% above |
The ₹10 lakh threshold counts all your LRS payments in the financial year. TCS is not a final tax; you claim it in your return. Higher rates apply if your PAN is inoperative. Our guide to LRS limits and TCS covers the credit.
Selling foreign currency after a trip
- Work out what you are holding. You may keep up to USD 2,000 in foreign currency without selling it.
- Sell anything above that, in notes or travellers’ cheques, within 180 days of your return.
- Take the currency to an AD bank or a money changer and show your identity documents.
- Check the buying rate before you agree. It will be below the reference rate.
A forex card balance can be refunded to your bank account by the issuer, usually for a fee. SBI, for example, lists a ₹100 plus GST refund fee on its forex card. Our comparison of forex card, credit card and cash sets out when each works best.
Carrying currency in and out of India
- Declare to Customs on arrival if your foreign notes exceed USD 5,000, or all your foreign exchange, including travellers’ cheques, exceeds USD 10,000.
- A resident returning from abroad may bring in Indian currency notes up to ₹25,000.
- Foreign exchange cannot be used for trips to Nepal and Bhutan under LRS.
Frequently asked questions
How can I purchase foreign currency in India?
Buy from an authorised dealer bank or an RBI-licensed money changer, in a branch or through its website. Give your PAN, fill Form A2 and pay by a banking channel if the amount is ₹50,000 or more.
How much foreign currency can I buy in India?
Up to USD 2,50,000 a financial year under LRS. For most destinations only USD 3,000 of a trip’s money can be in notes; the rest goes on a card or by transfer.
Can I pay cash to buy foreign currency?
Yes, but only when the total is below ₹50,000. Larger purchases must be paid by cheque, draft, pay order or card.
Is online forex exchange in India legal?
Yes, when the seller behind the website is an authorised dealer bank or an RBI-licensed money changer. The same PAN, Form A2 and payment rules apply online.
Is TCS charged when I buy foreign currency for travel?
For forex bought for a private trip, TCS is nil until your LRS spending in the year crosses ₹10 lakh, then 20% on the excess. A tour package attracts 2% from the first rupee.
How long can I keep leftover foreign currency?
You can keep up to USD 2,000 indefinitely. Anything above that must be sold within 180 days of coming back.
Why is the rate at the counter different from Google?
Search results show mid-market or reference rates. Sellers add a margin, and cash carries the widest one: on 16 September 2026 SBI sold dollar notes at ₹96.90 against a reference rate of ₹95.94.
Sources
- Miscellaneous forex facilities (FAQ) — Reserve Bank of India (checked 17 Sep 2026)
- Liberalised Remittance Scheme (FAQ) — Reserve Bank of India (checked 17 Sep 2026)
- Current rates: exchange rates (Source: FBIL) — Reserve Bank of India (checked 17 Sep 2026)
- Forex card rates, 16-09-2026 — State Bank of India (checked 17 Sep 2026)
- SBI Forex Card fees — State Bank of India (checked 17 Sep 2026)
- Revision in TCS on LRS transactions from 1 April 2026 — Standard Chartered Bank India (checked 17 Sep 2026)
Compare forex & global money with live numbers
Live exchange rates, forex cards, remittance costs and LRS rules — for travellers, students, NRIs and anyone paid in dollars.