Budget airline IndiGo has approached the Reserve Bank seeking relaxation in foreign exchange norms regarding use of Indian rupees for onboard sales in international flights.
Union minister Pon Radhakrishnan Friday told the Lok Sabha that an appropriate decision on the matter would be taken by the Reserve Bank of India (RBI) after due process.
IndiGo is the country’s largest airline in terms of domestic market share and also flies to more than 15 international destinations.
In a written reply, the Minister of State for Finance said that the RBI has received an application from IndiGo to effect in-flight sales in Indian rupees on its international flights.
Approval has been sought “to export currency notes up to Rs 1,50,000 to enable them to provide the change to passengers making purchases onboard in Indian rupees on its international flights”, he said.
According to the minister, the airline has also sought permission to import “without any limit”, currency notes in rupees that are collected from the passengers making in-flight purchases in domestic currencies on its overseas flights.
Currently, airlines are free to accept Indian rupees from a passenger towards goods and services offered onboard, subject to provisions under the Foreign Exchange Management (Export and Import of Currency) Regulations.