Whether you’re planning a trip to Europe, paying for university fees abroad, or sending money to your family overseas—buying foreign currency is a common need for many Indians today. But did you know that the sale & purchase of foreign currency in India is regulated by RBI guidelines?
At Multimoney Forex, we help thousands of customers buy/sell foreign exchange smoothly and legitimately. In this blog, we explain the top reasons to purchase foreign currency, the rules you need to follow, and how to do it without stress.
What Does “Purchase of Foreign Currency” Mean?
In simple terms, it means exchanging Indian Rupees (INR) for a foreign currency like US Dollars (USD), Euros (EUR), or Pounds (GBP), Dong, Dinar etc. This is done for various purposes like:
- Travelling abroad
- Paying for education overseas
- Cover medical treatment outside India
- Support family abroad
- Invest or donate internationally
This process is regulated by the Reserve Bank of India (RBI) under the Liberalised Remittance Scheme (LRS), which allows Indian residents to send or spend up to USD 250,000 per financial year for approved purposes.
You can read more about this in the insightful guide on RBI Guidelines on outward remittance.
The RBI wants to ensure that foreign exchange is used for valid, legal activities. That’s why they require buyers to submit documents like a passport, visa, admission letter or medical reports—depending on the reason for purchase. Know this blog on documents required for foreign outward remittance.
Let’s now look at the most common and approved purposes for buying foreign currency.
Top 7 Legitimate Purposes to Buy Foreign Currency
Here’s a quick table summarizing these reasons:
| Purpose | What It Covers |
| 1. Travel Abroad | Tickets, hotels, shopping, and local expenses for international trips |
| 2. Education Overseas | Tuition, hostel fees, exam costs, and living expenses for students |
| 3. Medical Treatment | Payments for treatment or surgery in a foreign hospital |
| 4. Emigration | Currency needed for settling abroad permanently |
| 5. Family Maintenance | Sending money to close relatives living abroad |
| 6. Investments Abroad | Buying property or investing in businesses outside India |
| 7. Gifts and Donations | Sending money to friends or charities abroad |
As RBI-Authorised AD-|| Dealer, we handle specified outward remittances for individuals and businesses. We help you remit funds for several personal and professional purposes, including:
- Private visits abroad
- Medical treatment overseas
- Remittance towards overseas education
- Paying emigration consultancy fees
- Remitting fees for conferences or training
- Sending money for exam fees abroad
- Emigration-related payments
We handle the paperwork, ensure full compliance and help you complete your transaction smoothly across 31 locations nationwide.
1. Travel Abroad
Whether it’s a family vacation or a business trip, foreign currency is essential. You can use it for:
- Flight bookings
- Hotel reservations
- Taxi rides and local transport
- Dining, shopping, and sightseeing
At Multimoney Forex, we offer travel currency exchange services at great rates with easy booking and doorstep delivery.
2. Education Overseas
Planning to study in Canada, the UK, or the US? Students often need to:
- Pay tuition fees
- Cover hostel rent
- Buy books and groceries
- Pay for exams or application forms
Buying foreign currency for these needs is completely legal. Just submit documents like an admission letter and passport, and you are good to go.
3. Medical Treatment Abroad
Sometimes, advanced treatments or surgeries are available only in hospitals abroad. You can legally buy foreign exchange for:
- Surgery or treatment bills
- Hospital stay
- Doctor consultation fees
- Travel expenses for patient and family
Remember to provide medical reports and hospital documents as proof.
4. Emigration
If you are moving to another country for work or permanent residence, you’ll need to take care of initial expenses. The RBI allows currency purchase for:
5. Family Maintenance
Sending monthly support to your children or parents living abroad? That’s permitted too. You’ll just need to show proof of relationship and the recipient’s address outside India.
6. Investments Abroad
Want to buy a flat in London or invest in a tech startup in the US? Under LRS, individuals can use foreign currency for:
- Real estate purchases
- Equity investments
- Setting up a business abroad
Make sure to consult a financial advisor before making any large investments.
7. Gifts and Donations
Yes, even gifts are allowed! You can send foreign currency as a gift to someone abroad or donate to a registered institution. Just keep documentation like the receiver ID or donation details ready.
RBI Guidelines To Know For The Purpose of Buying Foreign Currency
Here are a few important points before you purchase foreign currency:
- You must submit the required KYC documents
- The limit is USD 250,000 per year per person
- TCS (Tax Collected at Source) may apply for transactions over ₹7 lakh
Why Choose Multimoney Forex?
At Multimoney Forex, we don’t just give you the best exchange rates—we give you peace of mind.
Here’s what makes us different:
- RBI-authorised AD-|| Dealer
- Doorstep delivery of currency and forex cards
- Best live rates
- Transparent process with full documentation help
- Online tracking and alerts for your transactions
- 21+ years of experience & a dedicated support team for guidance
Explore our full Foreign Exchange Services and make your next currency purchase stress-free.
Final Say
Buying foreign currency may sound simple, but it must follow the rules. Knowing the purpose of buying foreign currency ensures you stay compliant and avoid any legal issues.
Whether you need USD for your next trip or GBP to pay for university fees—Multimoney Forex is here to help. With the right paperwork, great service, and fair rates, we make foreign exchange easy.
Need to get started today? Contact us or walk into your nearest Multimoney Forex branch.