The Ministry of Finance have conveyed that there is currently no stipulation under the Foreign Exchange Management Act which requires foreign tourists or visiting NRIs to make payment in foreign exchange while on a visit to India. 

Recently, the attention of the Ministry of Finance has been drawn to some cases where difficulty was cited in this regard. Ministry of Finance have clarified once again that the Government has not imposed any new restriction in the matter. Notification No. 16 issued by the Reserve Bank of India on May 3, 2000 enables  people in India to receive payments in Rupees from foreign nationals during their visits to India.