RBI Allows INR Exchange at Forex Counters in International Airport Departure Areas

In a notable relaxation of foreign exchange norms, the Reserve Bank of India (RBI) has now permitted both residents and non-residents to exchange Indian rupee notes at foreign exchange counters located in departure halls of international airports—even beyond immigration and customs checkpoints.

Until now, foreign exchange counters operating in the duty-free or security hold areas—zones beyond immigration—were subject to stricter operational limits. They were only permitted to buy Indian rupees from non-residents and sell foreign currency to them, and were not allowed to provide full exchange services to residents .

The restriction existed primarily due to regulatory and compliance concerns. Areas beyond immigration are considered controlled zones, making monitoring of financial transactions more complex. Under FEMA , transactions involving residents required stricter documentation and verification, which was easier to enforce in public-access areas. Authorities also aimed to prevent misuse such as money laundering , unauthorised currency conversion, or breaches of prescribed forex limits , while ensuring operational clarity in such restricted zones.

Following a review, the RBI has decided to ease these restrictions, allowing both residents and non-residents to exchange Indian currency at these counters. The change has been formalised through amendments to the Master Direction on Money Changing Activities , reflecting improved monitoring systems and compliance mechanisms.

The earlier limitation often caused inconvenience to travellers who carried leftover Indian currency after clearing immigration or required last-minute forex services. With the new rule, passengers can now complete currency exchange seamlessly within airport premises, improving traveller convenience and aligning India’s practices with global standards.

While the restriction was rooted in regulatory caution, the RBI’s latest decision signals a shift towards greater flexibility and efficiency in foreign exchange services, addressing a long-standing gap in last-mile forex access.