Foreign Exchange Management Act (FEMA)
3. Mode of payment of rupees against sale of foreign exchange
In case of sale of foreign Exchange or remittance foreign Exchange amounting to Rs. 20,000 or more the payment received by the Authorized Dealer, from the applicant should be through a crossed cheque drawn on the applicant bank account or on the bank account of the Firm/ Company. Payment can also be accepted in the form of a Banker's cheque / Pay Order / Demand Draft.
Receipt of Payment in cash in case of such sale of foreign Exchange or remittance in foreign Exchange is strictly prohibited.
However where purpose of sale of foreign exchange is for travel abroad for business etc, cash may be received by Authorized Dealer from Applicant upto Rs. 50,000/-
Where the rupee equivalent for drawing foreign exchange exceeds Rs. 50,000 either for any single installment or for more than one installment reckoned--- together for a single journey / visit it should be paid by the traveler by means of a gross cheque / demand draft/ pay order as stated above.