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.
Who it affects
Authorised Dealer Category-I banks, Authorised Dealers Category-II, Full Fledged Money Changers, Airport authorities
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.