NRIs can exchange old notes till June 30, 2017

NRIs can exchange old notes till June 30, 2017

In a notification issued by RBI (banking regulator) recently that resident Indian citizens who failed to deposit old notes and were abroad between November 9 and December 30, 2016 can avail themselves of this facility up to March 31, 2017, and NRI citizens, who were abroad during this period, can exchange their defunct notes up to June 30, 2017. 

"While there is no monetary limit for exchange for the eligible resident Indians, the limit for NRIs will be as per the relevant FEMA (Foreign Exchange Management Act) regulations (Rs 25,000 per person)," RBI said. 

Citizens can avail themselves of this facility in their individual capacity once during the period on submission of identification documents and documentary evidence showing they were abroad during the period and that they did not make use of the exchange facility earlier, RBI said. 

No third-party tender will be accepted under the facility, RBI said. On fulfilment of the terms and conditions and the genuineness of the notes tendered, admissible amount will be credited to the tenderer's KYC (know your customer) compliant bank account, it said. 

The NRIs traveling to India can only exchange up to Rs. 25,000 per person demonetized currencies and also has a limit fo Rs. 25,000 in demonetized notes to bring into india per person.

Demonetized notes must be declared to Customs

Every NRIs coming into India will have to declare to customs authorities at the airport. A false declarations or hiding the demonetized currency while traveling in to India can lead to a fine of Rs. 50,000 or 5 times fine of the cancelled currency being imported in to India, whichever is higher.  Once you arrive at the airport, there are specific custom counters for currency declaration in the arrival hall.  The Customs will issue a Currency Declaration Form Certificate ,after physically verifying the currency notes that you may need while depositing them at the RBI Branches.

Penalties for holding cancelled notes

The ordinance to extinguish the Reserve Bank of India’s liability in respect of cancelled Rs 500 and Rs 1,000 notes will come into force from December 31, prescribing penalty for anyone found to be holding and or dealing in these notes beyond a threshold. Not more than 10 notes of demonetized currency can be held after December 30, which will invite a fine of Rs 10,000 or five times the amount sized.

Deposit the Notes in to RBI

In order to deposit the outdated Indian currency notes in to RBI, you will need to visit one of the RBI branches in in Mumbai, New Delhi, Chennai, Kolkata & Nagpur. you will need the below documents to deposit the notes

  • A KYC compliant form
  • A duly filled Form by RBI
  • Original passport showing the immigration stamps as a proof of absence.
  • A certificate issued by Indian Customs on Arrival declaring the amount of currency notes you are carrying inside the country.
  • Copies of the bank statements in India in which the money will be deposited.
  • PAN Card along with a copy of PAN card. In case you do not have the PAN  card, you can fill out Form 60

Few things to keep in mind

  1. NRIs/OCI/PIO card holders are not permitted to send the bank notes through postal channels or my any mailing service to family and relatives in India.
  2. This provision is not applicable to Indian residents residing in Nepal, Bhutan, Bangladesh and Pakistan
  3. The deposit will be permitted by RBI subject to scrutiny of the documents submitted, fulfillment of the Terms & Conditions of the Scheme, and Genuineness of the notes tendered
  4. The Bank Notes must be deposited by the account holder in person. They cannot be deposited by a Third Party or any family member.