The Reserve Bank of India (RBI) has raised the forex cap for overseas travelers to 3,000 dollars against the existing limit of 2,000 dollars.

The existing limits have been reviewed and it has been decided to increase this ceiling, with immediate effect, RBI said in a notification on Tuesday, May 4.

This move by the RBi comes as great news to people going abroad as can avail up to 3,000 dollars or its equivalent amount in other currencies from forex dealers without prior permission from RBI.

However, the new forex cap does not apply to people traveling to certain countries such as Iraq, Libya, Iran, Russia and the CIS countries.