Financial Times

Public warned against buying foreign exchange with rupees
The Central Bank last week cautioned the public against buying foreign exchange from authorised money dealers in exchange for rupees.

" If a money changer sells foreign exchange against rupees not only the money changer but also the person who buys foreign currency from the money changer contravenes the provisions under Section 5(1) of the Exchange Control Act and thereby commits an offence punishable under Section 51 of the Exchange Control Act. For such an offence, a penalty upto three times of the value of the foreign exchange so purchased or sold could be imposed," the bank said in a statement.

It said 59 money changers have been authorised across the country to encash foreign currency notes into rupees and exchange one foreign currency to another foreign currency. They are not permitted under any circumstances to sell foreign exchange against rupees.

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