Friday, November 25, 2016

How do NRIs living in US,Canada,Australia,Singapore, Dubai change old Rs 500 and Rs 1000 cash?

In my last article is it possible to exchange old Rs 500 and to Rs 1000 notes overseas I mentioned that currently, it's not possible to change old Indian currencies of Rs 500 and Rs 1000 abroad because neither money exchangers are accepting those notes nor Indian banks at overseas, both public and private are accepting them. So, now the biggest question is how do NRIs living in US/Canada/Australia/Japan/Singapore/HongKong/UAE change their old notes? Are their cash is worthless now? The only way NRI can exchange or change old Rs 500 and Rs 1000 notes is either personally visiting any bank in India or authorizing someone to do the exchange on their behalf by submitting authorization letter and self-attested copy of passport. You should also remember the deadlines, 30th December 2016 and 31st March 2017



If you are traveling to India before 30th December 2016

Well, If you are lucky enough and have the plan to travel India until December 30 then those notes are not worthless, you can exchange or deposit it in your NRO account in India. Mind it, you can only deposit Rs 500 and Rs 1000 notes in NRO account and not in NRE account because NRE account doesn't take INR deposits. You should also remember that if you are making a cash deposit of more than 2.5 lakh then those will be reported to Income tax and will be matched against Income tax return you have filed earlier.

If you are not personally traveling to India on this period but any of your friend, family member or someone you trust is traveling then you can authorize them to exchange your Rs 500 and Rs 1000 notes on your behalf. They need to carry the original or scanned copy of authorization letter which should have the sign of account holder and self-attested copy of Passport if authorisation letter is scanned.



If you are traveling to India before 31st March 2017

The December 30 deadline is not the last opportunity to convert or exchange the old notes, you can do the conversion as last as 31st March 2017 in any RBI branch. Yes, deadline is more but hassle is also more, not all cities in India has branches of RBI but if you are one of those lucky guys who happen to travel or live in a city with RBI branches e.g. Mumbai, Nagpur, Srinagar, Jammu, Shimla, Chandigarh, Dehradun, New Delhi, Jaipur, Lucknow, Gangtok, Guwahati, Imphal, Aizawl, Agartala, Shillong, Patna, Kanpur, Ranchi, Kolkata, Raipur, Bhubaneswar, Belapur, Hyderabad, Panaji, Banglore, Chennai, Kochi, and Thiruvananthapuram then you can exchange your old Rs 1000 and Rs 500 notes there.


The documentation will be more because RBI will ask you why you didn't convert until 30th December but I expect they will understand NRIs are not just traveling to convert their notes into tickets are costlier than the cash they might have, but be prepared for that.


If NRI has Rs 500 and Rs 1000 bank notes in India

If you have some money in India which you cannot change or convert physically, you can authorize in writing enabling another person in India to deposit the notes into your bank account. The authorized person has to come to the bank branch with the notes, the authority letter given by you and a valid identity proof to deposit the money on your behalf. If authority letter is scanned copy then they also need to submit the self-attested copy of password of NRI account holder, which you can courier to them before 30th December 2016.

How do NRIs living in US,Canada,Australia,Singapore, Dubai change old Rs 500 and Rs 1000 cash?



That's all about how do NRIs living in the USA, Canada, Australia, Japan, Singapore, HongKong, UAE change their old Rs 500 and Rs 1000 notes. You must remember that it's not possible to change those notes in abroad, the only way to exchange them is either visiting India or authorizing someone in writing to exchange or deposit them on your behalf.

You can only deposit those notes in your NRO account and not in NRE account. I know this is not the ideal solution and I still hopeful when Government will issue directives to overseas branches of Indian banks to accept those notes, so let's see. For now, this is the only way NRIs living in the USA, Canada, Australia, Europe, Japan, Singapore, HongKong, UAE change their old Rs 500 and Rs 1000 notes.

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