Traveling abroad is an exciting experience. And when you’re planning a trip abroad, one question that comes up is “how much currency can I take out of India?”
Whether you’re a tourist, student, or businessperson, you need to know how much cash you can legally carry across the border. This is vital to avoid penalties, fines, or confiscation of your money.
In this blog, we’ll go over:
- Cash carrying limits applicable to students
- Difference between cash declaration and cash limits
- Cash carrying limit in India
- Cash carrying limits for popular destinations
- Special considerations for Indian students traveling abroad
- Risk of carrying large amount of cash
- Alternatives to carrying cash out of India
- What to do if you need to carry large amounts of cash
- How much Indian currency can be brought back to India
- FAQs about cash carrying limits
With clear guidelines and straightforward answers, you can navigate these regulations with ease.
Let’s dive right in.
What is a cash carrying limit?
Cash carrying limit refers to the amount of cash you can legally take across borders. Any amount of cash more than the specified limit has to be declared at the customs.
Most countries enforce these limits to:
- Prevent money laundering
- Stop terrorism financing
- Curtail illegal activities
When traveling, you need to know the cash limits of both your home and destination country.
Global Standard Practices
Different countries have varying rules when it comes to carrying cash. For example,
- The USA requires any traveler carrying $10,000 or more in cash (or its equivalent) to declare it upon entry or exit.
- The European Union requires travelers to declare amounts over €10,000.
In this blog, we will help you understand how much currency you can take out of India.
Important: Countries impose cash limits, but that doesn’t mean there is no way for you to carry more cash. You can carry more cash if you declare it properly at customs. We talk in detail about declaring cash during international travel here.
Cash carrying limits in India
For Indian residents, the Foreign Exchange Management Act (FEMA) regulates how much cash and foreign currency you can carry abroad.
Under FEMA, Indian travelers can:
- Carry up to ₹25,000 in Indian currency while leaving the country.
- Take foreign currency equivalent to USD 3,000 as cash.
- Carry up to USD 10,000 in total (including cash, traveler’s cheques, or forex cards combined).
Important: You cannot use Indian currency in most countries. This makes it necessary to convert your money into foreign currency before your trip. You can get foreign currency through banks, authorized forex dealers, or Forex cards.
Also Read: Accommodation In USA For Students
Cash limits for popular destinations
United States
When going to the US from India, travelers are required to declare cash amounts over USD 10,000. This includes physical cash, traveler’s cheques, money orders, and negotiable instruments.
European Union
If you are traveling to the European Union (EU), the cash limit is €10,000. Travelers carrying larger amounts must declare this at customs. Note that this applies whether you are entering or leaving the EU.
United Kingdom
After Brexit, the UK now has its own rules regarding cash limits. You must declare amounts over £10,000 when traveling to or from the UK.
Canada and Australia
When visiting Canada or Australia cash limits are set at CAD 10,000 and AUD 10,000 respectively.
Middle East Countries
For Middle Eastern countries like the UAE, from India, you can carry up to AED 100,000.
Note: The rules regarding cash carrying limits keep on evolving. Always double check the specific requirements of the destination country before travel.
Special considerations for Indian students traveling abroad
Indian students going abroad also need to plan how they will manage their funds.
Students can carry foreign currency up to USD 10,000 to cover tuition, rent, and living costs. This amount is usually broken down as USD 3,000 in cash and the rest on Forex cards.
What if my tuition fee exceeds this limit?
Your tuition fee is likely to exceed the USD 10,000 limit. So you can carry more cash than USD 10,000 by declaring it at the customs. You’d need to clearly explain the source of these funds (loan, scholarship, etc.) and its purpose (paying the college tuition).
However, it is best to not carry huge amounts of cash for safety reasons.
If you are taking out an education loan or have a scholarship, the funds can be transferred directly to the university. Also, banks in India allow you to transfer money internationally using wire transfers.
5 common mistakes Indian students make when carrying money abroad
Carrying Too Much Cash
Solution: Use a Forex card or international bank transfer for larger amounts. Keep only essential cash on hand.
Not Declaring Cash at Customs
Solution: Before your travel, understand the cash carrying limit. Also, check what documents you’ll need to declare cash if it exceeds the legal limit. Make sure you properly declare the cash at the entry and exit customs.
Relying Only on Cash for Expenses
Solution: Diversify your payment methods by using cards and digital wallets. These are much safer than carrying a wad of cash.
Using Unauthorized Currency Exchange Services
Solution: Stick to banks and authorized forex dealers for currency conversion. Depending on unauthorized sources to get better exchange rates can lead to scams.
Read More: Tips to Save Money During Currency Exchange
Ignoring Transaction Fees on Credit/Debit Cards
Solution: Before your travel, carefully understand the terms and conditions of your cards. Try to find cards with low/no foreign transaction fees to avoid additional costs while studying abroad.
These tips can help students safely and efficiently manage money while studying abroad.
Pro Tip: FundRight (by GradRight), a new-age education loan platform, can help you get the best low-interest education loans and also offer support and guidance for avoiding cash carrying mistakes.
What to do if you need to carry a large amount of cash
If you must carry more cash than the legal limit, you can still do so by declaring it at customs. You’ll need to provide documentation explaining the source of the funds. This could be bank statements showing the source of the funds or loan approval letters.
You should also be prepared to answer questions about your finances.
Pro Tip: To avoid delays at customs, have all your documentation ready beforehand. Also, be honest about the amount of cash you are carrying. Clear explanations for the source and purpose of the funds ensures a smooth process.
Alternatives to carrying cash
While you can declare cash at customs and carry bigger sums, for most people, the preferred option is to avoid it. By considering alternatives, you can not just avoid the hassle but also make travel safer.
Some of the alternatives to carrying cash while traveling abroad from India are:
| Mode | Description | How safe is it? | Ease of use |
| Forex Cards | Prepaid cards loaded with foreign currency. Used like debit or credit cards at ATMs and for purchases. | Safest | Easiest |
| Traveler’s Cheques | Paper cheques that can be used to withdraw money or make payments. Less commonly accepted now. | Safe | Easy |
| International Bank Transfers | Move large sums of money via SWIFT transfers or services like Western Union. Fees may apply. | Safest | Easier |
| Digital Wallets/Payment Apps | Apps like PayPal, Wise, or Revolut for sending/receiving money securely without carrying cash. | Safer | Easiest |
| Credit/Debit Cards | Indian bank-issued cards for international use. Some waive foreign transaction fees, but extra merchant fees might apply on the usage of these cards. | Safer | Easier |
How much Indian currency can be brought back to India?
When you’re returning to India, there are limits on how much Indian currency you can bring with you. According to RBI guidelines:
- Residents of India can bring back up to ₹25,000 in Indian currency when returning from any country. This is except when you are returning from Nepal and Bhutan.
- For travelers from Nepal or Bhutan, the limit is ₹100 in Indian currency denominations. (This is because Nepal and Bhutan share open borders with India and currency circulation rules are different.)
- For foreign travelers, the limit is up to ₹25,000 in Indian currency when entering India via an airport. (Foreign travelers means anyone excluding citizens of and travelers coming from Pakistan/Bangladesh.)
It’s important to note that bringing in more than ₹25,000 without declaration is not allowed. If you exceed this limit and do not declare it, you could face penalties.
FAQs
The safest way to carry money abroad is by mixing cash with other forms of currency. You can carry up to USD 3,000 in cash for immediate expenses. The rest can be in the form of Forex cards or traveler’s cheques. This is because forex cards are globally accepted and it is safer to carry the card than large amounts of cash. You can use this card to withdraw money from ATMs when you’re abroad.
On international flights from India, you are allowed to carry up to USD 3,000 in cash without the need to declare it. You can carry up to USD 10,000 in total (cash, traveler’s cheques, or Forex cards combined). For carrying more money than that, you must declare it at customs.
For most international travel, you can carry up to USD 3,000 in cash. If you’re going to specific countries like Iraq or Libya, the limit increases to USD 5,000. For travel to Iran, Russia, and CIS countries, you can carry the full foreign exchange amount in cash. (That is up to USD 250,000)
However, any amount above USD 10,000 must be declared at customs.
Even if you’re only transiting through a country, you may need to declare cash if it exceeds the threshold.
This is because some countries also apply their cash declaration laws to transit passengers.
For instance, if you have a layover in the United States, you must declare any amount exceeding US$10,000. This needs to be done even if you’re not exiting the airport. Similarly, the EU and many other countries have stringent rules for transit travelers.
So make sure you check the regulations for all countries you pass through.
