I don’t have a foreign currency account and I have received a cheque of $1,000 from some friends in the US that I want to encash. How can I get this money?

Dipti Bhalla, Gurugram

There is nothing to worry over if you do not have a foreign account to encash this cheque. You can deposit the cheque in your savings bank account, which will get credited to your account once it is cleared through the inter-bank operation. The exchange rate applicable on the transfer will be used for conversion purposes. The bank may ask you to give an undertaking that you have received the money from your friend and is in no way linked to foreign exchange saved after a foreign visit. They may also ask you to furnish an undertaking seeking details of any such foreign currency deposits into your account in the financial year when you deposit this cheque. The credit note of this sum may take a week or longer, so do have the patience for the credit to reflect in your account.

olmdesk@outlookindia.com