Question : LEGALIZATION OF RUPEE ABROAD



(a) the details of countries where Indian Currency is legalized along with the time since when the same is legalized;

(b) the extent by which this has led to proliferation of fake Indian currency notes;

(c) the steps taken to address such problem?

Answer given by the minister


MINISTER OF FINANCE (SHRI ARUN JAITLEY)

(a) Reserve Bank of India (RBI) has informed that as per Foreign Exchange Management (Export and import of currency) Regulations, 2000, a person inter alia, may (i) take or send out of India to Nepal or Bhutan, currency notes of the Government of India and Reserve Bank of India notes (other than notes of denominations of above Rs.100 in either case) and (ii) bring into India from Nepal or Bhutan, currency notes of Government of India and Reserve Bank of India notes (other than notes of denominations of above Rs.100 in either case). Therefore, while Indian currency may be legal tender in Nepal & Bhutan, it is for the respective Government and Monetary Authorities to declare whether Indian currency is legal tender in their countries.

(b)& (c) No information on the correlation of counterfeiting and legal tender character of Indian banknotes in a foreign country is available with RBI.

Download PDF Files