500 and 1,000 Indian rupee notes are not worthless. NRIs should take any of the following steps to reclaim their worth.
Resident Indians and expatriates were taken by surprise last night when the Indian Prime Minister announced the demonetization of 500 and 1,000 rupee notes with immediate effect. Several non-resident Indians, especially in the UAE, who frequently travel to their home country, scurried to the nearby exchange houses to get the currency converted. But large exchange houses in the UAE are not accepting any Indian currency as of now.
Take a look: These are the new Rs 500, Rs 2,000 notes in India
Does that mean that the bills have become worthless overnight? Not really. There are a few steps you can take to reclaim their worth.
Deposit in NRO accounts
Manoj Nagpal, CEO, Outlook Asia Capital, suggests putting the money into the NRO accounts. “If you have an NRO bank account, you can visit the branch of the said bank in Dubai, or anywhere in the world, and deposit the same in the NRO account. There has been clarity on this from the Reserve Bank of India, and Indian banks with representative offices abroad should accept this cash to be deposited in the NRO accounts.”
He also suggests opening an NRO account, in case you do not have one and do the same.
Travel to India before December 30, 2016
Indian government has allowed time till December 30 to deposit money in the bank accounts. There is no limit on the money that can be deposited in one’s own account, provided all the KYC forms are in place. For all transactions above Rs50,000, account holders will have to furnish their PAN cards.
“NRIs can carry up to Rs25,000 per person when they travel to India and have it exchanged or deposited into their bank accounts until December 30,” says Vishal Dhawan, a Mumbai-based financial planner.
Travel to India after December 30, 2016
If you are traveling to India next year, you can visit any RBI office and convert the Indian currency into any other with due proof and reasons of delay.
Send money through someone to India
In case you are unable to travel to India in the coming six weeks, you can send the money through someone to India along with an authorisation letter, identity proof, such as copies of the passport, PAN card, etc., and entry and exit stamps from and to the Indian destination.