SRINAGAR: The Ministry of Minority Affairs has clarified significant changes in the provision of foreign exchange (forex) for Indian Haj pilgrims and addressed concerns regarding the potential misuse of currency exchange systems.
Before 2023, every pilgrim travelling through the Haj Committee of India (HCoI) received 2,100 Saudi Riyals in cash at their embarkation points after depositing the equivalent amount in Indian rupees. However, this system was discontinued in 2023 to offer pilgrims greater flexibility. Pilgrims were instead allowed to arrange forex according to their individual needs, removing the mandate to exchange a fixed amount.
In its response, the Ministry highlighted a partnership with the State Bank of India (SBI) for Haj 2023 and 2024. As India’s largest bank and a Domestic Systemically Important Bank (D-SIB), SBI provided convenient forex services, including forex cards, to minimise risks such as theft or loss during travel. Pilgrims could obtain foreign currency at competitive rates from designated SBI branches and embarkation points. However, the arrangement with SBI remained optional, allowing pilgrims to procure forex from sources of their choice. For Haj 2025, the Ministry plans to expand this facilitation to other D-SIBs to increase accessibility and reach.
The Ministry confirmed that no instances of fraud related to currency exchange have been reported since the introduction of the new system. This assurance alleviates concerns raised about potential malpractice after the discontinuation of the earlier mandatory forex provision.
