Answers to: Can one deposit a cheque in USD denomination to an Indian currency bank account? Can one deposit cash dollars in an INR currency bank account?
There are a couple of scenario to this question. One is to be able to deposit a cheque in USD denomination to your Indian bank account and the other is to be able to deposit dollars as cash to your Indian bank account.
Deposit USD Cheque in Indian Bank Account
Yes, one can deposit check any currency cheque in his or her bank account. The process for clearance is longer and the cheque will be sent to the bank branch in the source country. Once cleared by the source bank the amount will be converted to Indian rupees at the prevailing conversion rate offered by the bank on that day and credited as INR to your bank account.
I have shared the exact process with every possible detail on do’s and don’ts of depositing USD Cheque in Indian Bank Account.
Deposit USD Currency in Indian Bank Account
If you have done an International visit, you may be left over with some foreign currency that you plan to pay for the transportation to the airport or may even have some cash for an emergency and end up carrying the money to India.
Having a foreign currency isn’t unexpected.
It isn’t even illegal to own some foreign currencies either. This article from NRICafe and I quote: (Italics is my addition)
Passengers can bring in or take out unlimited foreign currency, but has to fill up declaration form if total cash amount is more than USD 5000 or total (travellers cheque + cash) is more than USD 10,000.
We aren’t discussing the limits and want to deal with small denominations that may be left over as traveling abroad.
One can deposit foreign currency into his or her bank account but may need to show proof of travel as well as passport and visa details. Some bank’s branches may not even accept foreign currency and the process varies from bank to bank and often from branch to branch. HDFC Bank even offers a foreign currency bank account.
The other choice can be to keep the foreign currency or USD with you as cash. If you have plans to travel again or if your close relatives are traveling, you can give it to them. They can also carry foreign currency cash to a certain limit. In my visit to Saudia Arabia, I was left with some Saudi Riyals and I have kept them as I know I will be making visiting again for sure.
The third and possibly the easiest alternative is to visit a money changer in your locality and get the foreign currency exchanged. It is much simpler with minimal documentation and can get the best possible forex rate.
For significant large amount, money changers may offer cheque instead of cash and this is when banks make more sense.
Further Reading …