Sending Money to India by Cash

People living abroad and having relatives in India are always on the lookout for ways to send money back home. Understandably, there are several ways that you can adopt to send money to India, each having its own pros and cons. Sending money to India can be done by either taking cash with you while visiting the country or via online transfers.

There are several factors to be considered while carrying cash with you to India, each of which will help you decide whether or not this is the best method for sending money to India. The first factor to consider is regarding limits on the amount of foreign currency that you can bring into the country.

Although the government of India does not restrict the amount of foreign currency that you are allowed to carry by hand, it does seek customs declaration for amounts over $10000. In other words, if you are planning to bring in more than $10000, then you will have to declare with Customs during your entry into the country.

A CDF or a Customs Declaration Form, duly filled, has to be submitted to the Customs, which gives you a stamped copy of the same. Always retain this copy of the declaration form. Any foreign currency so brought into India can be exchanged at various authorized banks or with currency exchange agents, at the current rate and for an exchange fee.

While bringing money to India, make sure that you do not get any in Indian rupees, as this is prohibited. In fact, bringing in Indian Rupees from abroad is prohibited, as also is taking them back. So, before leaving the country, don’t forget to convert the Indian currency into foreign currency with the help of the CDF.

Like most methods for sending money to India, doing so by cash is not without its pros and cons. One of the major advantages of sending money to India by cash is that it is the most convenient of all modes. Additionally, you pay less in terms of exchange fees, as opposed to other modes of carrying money into the country.

When it comes to disadvantages of sending money to India by cash, the most common problem is that carrying cash is risky. Since cash is easily prone to theft, making it irreplaceable, you need to be on your guard if you wish to use this mode. Moreover, when sending money to India in large amounts by cash, it gets bulky and is often awkward to carry. Carrying foreign exchange as cash means that you will need to visit a bank and change it into Indian Rupees before going anywhere, which can be easily avoided by using other modes like credit or debit card.

When bringing money to India, remember that US Dollars, British Pounds or the Euro are the most commonly accepted currencies in India. However, some banks do accept other currencies as well, like the Swiss Franc, the Canadian Dollar and the Australian Dollar etc. Still, it is best to clarify with the bank before bringing money to India, especially when in doubt regarding exchange policies.

Banks are the best places to exchange foreign currency in addition to the several currency exchange agents who are authorized for the job. When you exchange foreign currency, agents or banks give you an Encashment Certificate, which is absolutely essential for reconversion. Always remember that if you don’t have the encashment certificate, you will be able to reconvert only a maximum amount of Rs.100, which is the authorized limit. 

So, keep all these factors in mind before you opt for sending money to India by cash.
 

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