Options for NRIs to Exchange Old Currency Notes of 500 & 1000

Demonetization has marred Pan India. However, the decision is an incredible move of the current government to hunt those who have parked black-money. But this decision has badly thrashed the honest and white-money holders. It’s no less than the emergency situation. But slowly and steadily, Indian economy is coming back on track.

Problems of NRIs due to demonetization

No exchange from private as well as public bank abroad

But Non-residents of India (NRIs) diaspora is not happy at all. The private as well as public banks abroad are not exchanging the old Indian currency notes of Rs. 500 and Rs. 1000. Even, the branches of Indian banks, like SBI, are denying exchange. New denomination notes of Rs. 500 and Rs. 2000 are available in India for exchanging.

No transfer from account other than NRO

The apex Indian bank, Reserve Bank of India, has strictly announced that the Indian diaspora in foreign must use their Non-Resident Ordinary Rupee (NRO) account if it wants to deposit old currency. This type of account is especially meant for the NRIs. They can use it as the regular saving account in India. But the problem is that they have to come to India for depositing old currency. They can’t deposit them in their NRE account as per strict guidelines of the RBI.

Show the source of currency

There is another restriction that is of stating the valid source of the money that he/she is depositing. For example, if the person wants to credit his NRO account with the rental amount (income from the rented Indian property), he/she has to showcase the valid proof, i.e. rental agreement.

Amount deposited exceeding 2.5 lakh is ‘black’

The line has been drawn for depositing white old currency notes. Upto 2.5 lakh notes in old Indian currency can be added to their NRO account. But what if it exceeds? This is another problem.

Options to exchange old denomination notes: The last date of exchanging amount has been announced, i.e. 30th December 2016 in Indian banks and 31st March in RBI.

By self: As told above, the depositor can visit India with the old denomination notes.

• Open his NRO account in any authorized bank. It can be easily done if the person completes formality of attestation certificate services of his/her identity & residence or PAN card or Ration card or Aadhaar card & their photocopies with the competent authority. Then, fulfill all requirements of opening NRO account at the chosen bank.

• Or, if his/her account already exists, visit the respective bank with valid proof of his/her identity, like valid passport, Aadhaar card & PAN card, and source of that fund.

• If the amount exceeds 2.5 lakh, he/she can pay 45 percent of the exceeding amount as penalty for parking black money. Hence, the old notes will be converted into white money.

By an authorized person: Since it becomes tough to emigrate & bear its expenses, many emigrants who want to exchange money are feeling helpless. There is a good news for them. Such emigrants can authorize any person from his family, relatives or friends. It will be a special authority entrusted under special power of attorney. They can handover them the amount to be deposited. What the authorized person must take into account are:

• Visit the bank along with the letter of authority attested by the NRIs.

• Bring along his as well as the account holder’s valid identity/ residential proof.

• Show account details & its valid papers of the account holder.

• State the authentic source of that amount.

It’s noteworthy that the person can bring INR 25,000 along and deposit this amount in the bank. Earlier, the limit of that amount was just INR 7,500.This amendment is done just for delivering convenience to the emigrants.

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