Module: | MODULE A: INTERNATIONAL BANKING
Q70: Consider the following statements regarding the surrender of unspent foreign exchange:
1. Foreign currency notes brought back to India must be surrendered to a bank within 180 days of return.
2. Resident individuals are permitted to retain foreign currency notes up to a limit of USD 2,000 indefinitely for future use.
3. Foreign exchange held in a Foreign Currency Account in GIFT City (IFSC) must be repatriated if not used for the declared purpose within 15 days.
Which of the statements given above is or are correct?
2. Resident individuals are permitted to retain foreign currency notes up to a limit of USD 2,000 indefinitely for future use.
3. Foreign exchange held in a Foreign Currency Account in GIFT City (IFSC) must be repatriated if not used for the declared purpose within 15 days.
Which of the statements given above is or are correct?
✅ Correct Answer: D
🎯 Quick Answer:
All statements (1, 2, and 3) are correct.Structural Breakdown: Cash Surrender: Unspent physical foreign currency (Cash or Traveller's Cheques) must be surrendered within 180 days.
Retention Limit: Residents can keep Small Change up to USD 2,000 (or equivalent) in physical notes or coins.
This does not need to be surrendered.
IFSC Rule (Strict): Funds remitted to an IFSC (International Financial Services Centre) are treated as offshore.
If the money sits idle in the IFSC Foreign Currency Account for more than 15 days, it must be repatriated to the domestic INR account.
It cannot be used as a parking facility.