Forex is an emerging sector as India opens up opportunities for the nationals to travel abroad and spread out an invite the world to the nation. Forex has been a complicated thing in the Indian market.
Forex is continuously being affected by the various factors all over the globe it doesn’t matter if the US oil exchange works or no to Indians but it will be affecting the forex rates all over the globe. Under the Liberalized Remittance Scheme (LRS), issued by the Reserve Bank of India (RBI), Resident Indians are allowed to freely remit up to $250,000 (around ₹1.77 crores as on 23 September) per financial year for any permissible transactions through banking channels. Usually, the law allows you to buy foreign exchange 180 days before your travel date from authorized personnel or dealer. The law allows you to exchange forex equivalent to up to ₹50,000 if you want it in cash and exceeding amount requires some banking transactions. If the amount of forex you want to buy is equivalent to or more than ₹50,000, the payment should be made by way of a crossed cheque, banker’s cheque, pay the order, demand draft, debit card, credit card or prepaid card only. There is no specified time limit (to obtain forex) but possession of a valid passport and visa if required for travel to that country is required when exchanging currency.
Forex in India is also used for money laundering or even to regulate cash flow of so-called black money or even fund terrorist acts. The regulation of forex is quite strict in the nation so as to eliminate the vices.