Archive for October 27th, 2011

Choosing where to locate Forex counters at the airport

October 27, 2011

I came across this interesting notification from RBI.

Just to point what all RBI has to look in:

On a review relating to compliance of the Foreign Exchange Counters (full-fledged branches/ extension counters) opened by Authorised Dealer Category-I banks, Authorised Dealers Category-II and Full Fledged Money Changers beyond the Domestic Tariff Area in international airports in India, it has been decided as under :

(a)  Foreign Exchange Counters in the arrival halls in international airports in India shall ideally be established after the Customs Desk (Green Channel/Red Channel). However, Foreign Exchange Counters may also be established between the Immigration Desk and the Customs Desk in international airports in India, subject to the condition that these counters shall only purchase Foreign currency and sell Indian Rupees (INR) and “Encashment Certificates” shall invariably be issued by the money changers to the customers.

(b) Similarly, Foreign Exchange Counters in the departure halls in international airports in India shall be established only before the Customs Desk or the Immigration Desk, whichever comes first. Putting up suitable display at these counters, reminding the passengers that the area is the last point for non-residents to possess Indian Rupees (INR) may be followed up with the Airport Authorities.

Some forex dealers seem to be violating these locational rules and hence the notification. I am wondering how was it allowed at the first place to have forex counters after custom  desks.

Amazing how basic rules get violated here…Also what all things RBI has to look into…Central Banking in India is full of challenges and issues.

RBI should also look into the spread the forex counters charge for conversion. They just fleece you left right and centre…

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