A surprising and positive decision by the Prime Minister of India, Narendra Modi to ban all the Rs 500 and Rs 1000 notes to eliminate black money and terrorism in the country, has been welcomed by the Indians both in India and abroad.
Yet, many NRIs living in abroad have been in a dilemma about what to do with the old denominations of RS 500 and Rs 1000, they currently possess. But there is nothing to worry as below are some of the options available:
Carry the cash with you to India:
According to the Government of India, you can deposit the money in your bank account till 30th of December, 2016. No limitations will be set on the money you want to deposit in the bank account. All you need to is to make sure that the Know Your Customer or KYC forms are in order. If you have plans to visit India before 31st of March, 2017, then you can easily exchange them at any office of the Reserve Bank of India. Be noted that you need to provide your passport along with visa and other necessary documents to prove that you were out of the country during this time. On the other hand, if you are currently travelling to India, then you can exchange the banknotes at any Indian airport.
Use money-exchange in your country:
Even though this was a good option but according to the new update, most of the Indian banks in abroad have refused to accept the old denominations of Rs 500 and Rs 1000.
Deposit the old notes in your NRO account:
The Reserve Bank of India has made an announcement right after the Government put a ban, that you still deposit the old denominations of Rs 500 and Rs 1000 in your account. The representative offices and staff of the Indian banks in different countries are yet to receive further notice on how to process the banking operations. According to the Indian Banks in abroad, the NRIs need to wait for more than a week to receive any clarity on this matter.
Authorize another person in India to deposit the notes:
If you have no plans to visit India before 30th of December, 2016 or 31st of March, 2017, then, in that case, you can transfer the authorization of your bank account to someone India that might be your immediate family member or distant relative. The Reserve Bank of India has clearly stated in the guidelines that, “If you have Specified banknotes in India, you may authorize in writing enabling another person in India to deposit the notes into your bank account. The person so authorized has to come to the bank branch with the Specified banknotes, the authority letter given by you and a valid identity proof (Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff).”
On the other hand, if none of the options are applicable to you, there is nothing to worry about.
The Finance Minister of India stated,
“For those who are unable to exchange their Old High Denomination Bank Notes or deposit the same in their bank accounts on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI on later dates along with necessary documentation as may be specified by the Reserve Bank of India.”