RBI permits NRIs to exchange old notes till June 30

The Dollar Business Bureau

The Reserve Bank of India (RBI) has permitted non-resident Indians (NRIs) to exchange scrapped notes of Rs.500 and Rs.1,000 till June 30. This exchange facility will be only available through specified offices of RBI in Delhi, Mumbai, Kolkata, Chennai and Nagpur. 

Resident Indian nationals who failed to deposit the junked notes and were out of the country between November 9 and December 30, 2016 can get the facility to exchange the old notes up to March 31, 2017, and NRIs can exchange their old notes up to June 30, 2017. 

NRIs (Non-Resident Indians) and Indian citizens abroad can deposit the demonetised currency up to Rs.25,000 during the grace period of 3-6 month, but only if they declare the junked banknotes to the Customs officials at the airport and get adeclaration form stamped. 

This declaration will have to be provided at specific RBI offices while depositing the old currency, according to a notification by finance ministry. 

Though the 50-day window for depositing such notes at post offices or banks ended on December 30, 2016, the government has provided a grace period for people who were abroad. 

However, this facility is subject to Foreign Exchange Management (Export and Import of Currency) Regulations, 2015, in which bringing back such type of currency into India is limited to Rs.25,000 per person. 

The residents who are returning from Bhutan and Nepal are not allowed to carry old Rs.500 and Rs.1,000 notes. 

The finance ministry said that since this is a facilitation measure to enable resident and NRIs to deposit old notes when they arrive in the country, steps should be taken to create awareness in the passengers and airlines about the new dispensation. 

The government, on November 8, had declared the bank notes of Rs.500 and Rs.1,000 denomination as illegal from November 9. Later, on December 30, the President had approved the proclamation of the Specified Bank Notes (Cessation of Liabilities Ordinance) Ordinance, 2016, which imposes punitive liabilities on the holders of old notes after a specified date,” the notification said.