India’s Currency Ban of High Denomination Notes
Latest information on currency ban - What NRIs, OCI and PIO & Foreigners
should know
NRIs who hold money in their NRI accounts in India banks should note that their money is safe. The only restriction currently is that cash withdrawals from bank accounts for a few days is limited to Rupees 20,000 per week which works out to $300 per week. Foreign exchange conversion to Indian currency at airports is also temporarily limited to Rupees 5000 only. This amount may be increased by the Government in the near future. With the surprise announcement by the Government of India to declare Rupees 500 & 1000 currency notes as not legal currency effective November 9, 2016. There are many rumors going around regarding currency in India such as new currency notes having electronic chips to track currency notes etc. These rumors are not true. There have also been reports of some foreign exchange dealers selling US dollars to Indians and charging them Rupees 110 per dollar instead of the current exchange rate of Rupees 67 to a dollar. People seem to be paying this rate of exchange perhaps to get rid of unaccounted money.Here is what we know so far.
As announced by the Government of India, banks are open today [November 10, 2016] most banks will also be open on Saturday & Sunday to cope with the volume of customers to exchange and deposit discontinued currency.How to exchange currency at Indian banks
1. Fill in the applicable exchange Form [See Sample] 2. I visited Axis Bank today to exchange Rs. 4000 and along with the Form they also want the serial numbers of all currency notes listed on the exchange Form. [Took four hours to get the exchange done!] 3. Take a photocopy of your ID document. [Pan Card or other acceptable ID shown on Form] You must also take the original with you. I had to show mine despite I had take a photo copy. 4. Up to November 24, 2016 only up to Rs. 4000 can be exchanged using the discontinued currency. From November 25, 2016 to December 30, 2016 more than Rupees 4000 exchange is expected to be allowed, however there is no indication of what this limit will be. The time limit to exchange currency at any bank is up to December 30, 2016. 5. Tourists already in the country supposedly can also exchange their 500 & 1000 Rupee notes up to a total value of Rs. 4000 but they must show proof of where they exchanged foreign currency to get the Indian currency notes. Tourists arriving in India can exchange their foreign currency up to a value of only Rupees 5000. Tourists who are planning to visit India in the next month or so, should if possible postpone their visit until the currency situation is rectified.Withdrawal Cash from your Indian or NRO or NRE bank
account in India is also limited
Those who have bank accounts in India can only withdraw up to Rupees 10,000 at a time with a maximum limit of Rupees 20,000 per week. There have been reports that banks are running out of money and also in some instances restricting withdrawal amounts. Most ATM machines are running out of money fast as supposedly only Rupees 50 & 100 denomination notes are being dispensed. There appears to be a severe shortage of the new notes.Deposit discontinued Rs. 500 & Rs. 1000 currency
notes in bank account
4. From November 10, 2016 to December 30, 2016 Deposits of any amount of Rs. 500 & 1000 currency notes can be made at your Indian bank. You must have a valid bank account at a bank. Proof such as PAN number will be required. NRIs or Foreigners who do not have a Pan Card should ask the bank to give you an exemption from providing PAN Form to fill out. 5. From December 31, 2016 to March 31, 2016 deposits will have to be done at RBI specified offices on showing ID proof, Pan Card and filling in a Declaration Form. Those who deposit more that Rupees 250,000 in their bank accounts, are required to fill a special form declaration indicating source of money. [I deposited Rupees two Lakh that I had withdrawn for my bank on October 21, 2016 and despite the amount being less that 2.5 Lakh, still had to fill this form to deposit the money back in the same account] Any unaccounted money will result in a 200% penalty plus the applicable income tax. This has been announced by the Ministry of Finance. Those who have legitimate money, regardless of the amount need not worry.When will the currency situation in India expected to
improve
Situation will improve as soon as enough currency notes become available. Currently people are somewhat confused and worried. Most small stores do not accept credit cards in India and furthermore not many people have credit cards in India. According to the Reserve Bank of India (RBI) as of October 2014 the total number of credit cards issued by 55 scheduled commercial banks in India is 19.9 million. A small percentage of a population which stands at around 1,341,347,582 [1.34 billion]. The use of cash has been and will probably remain the main mode of payment by most people. The government of India though is trying to get people to adopt alternate means in an effort to track tax evasion. Hopefully some good eventually result when all the issues are sorted out and normalcy returns.NRIs should get Pan Card
NRIs who do not have Pan Card and frequently visit or deal with banks in India are advised to get a Pan Card even though they may be exempt. Pan Card is free, is an excellent form of photo ID in India and will make your life easier when you visit India.
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional
accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has
been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail.
© Copyright 2006 Nriinformation.com
NRI
Update Nov 22, 2016
Currency Notes Rationing India
2.5 Lakh cash for wedding withdrawal only allowed for those with weddings on or before Dec 30, 2016. Only one family member can withdraw. The amount of 2.5 Lakh for wedding can be withdrawn only from your account balance as on Nov 8, 2016. Any deposits made after Nov 8, 2016 cannot be withdrawn for this purpose Withdrawal amount for weddings can be used to make cash payments to only those who do not have a bank account and the names of such recipients who will be paid in cash, must be provided to the bank when applying for withdrawal of 2.5 Lakh for wedding category. Long lines continue all across India at ATMs and banks. Tourists also lining up to exchange money. The weekly limit of Rs.24,000/ not being honored by some banks as they say they are running out of cash. Just spoke to someone who only got Rs. 9000 The Rs. 4500 currency exchange amount has been Reduced to Rs. 2000 from Nov 18 Changes expected to be announced by Nov 25, 2016 Hopefully cash situation will gradually improve. No info yet for NRIs or Foreigners on how they can exchange their currency notes.
Update Dec 30, 2016
Currency Notes Rationing India
The Reserve Bank of India has raised the daily ATM withdrawal limit from Rupees 2500/- per day to Rupees 4500/- per day effective January 1, 2017. However, the maximum weekly limit allowed remains unchanged at Rs. 24,000 per week. New rules specify fines for holding more than 10 currency notes of demonetized Rs. 500/1000 notes after March 31, 2017. The minimum fine is Rupees 10,000 or five times the cash held, whichever is higher.
Update Jan 4, 2017
How NRIs Can Exchange Currency
The Reserve Bank of India has allowed an extension for NRIs & Indians who were abroad between Nov 6 to December 30, 2016 to exchange by deposits Rs. 500/1000 notes by March 31, 2017 for Indians and up to June 30, 2017 for NRIs. As per rules announced, NRIs & Indians will have to show the Rupee notes and get a stamped declaration from customs at point of entry into India. The exchange facility will be available through RBI offices in Chennai, Delhi, Kolkata, Mumbai & Nagpur
Update Jan 16, 2017
ATM withdrawal limit increased
The Reserve Bank of India has raised the ATM cash withdrawal limit to Rs 10,000 per day but left the weekly ceiling of Rs 24,000 unchanged. The withdrawal limit for current accounts has been raised from Rs 50,000 to to Rs 100,000 per week
Update
Effective March 13, 2017 RBI has removed restrictions imposed on bank account withdrawals. Currency situation should now be normal in India.
Update February 8, 2017
RBI currency withdrawal limit
Effective February 20, 2017, the limits on cash withdrawals from the Savings Bank accounts will be enhanced to ₹ 50,000 per week Effective March 13, 2017, there will be no limits on cash withdrawals from Savings Bank accounts. [To view RBI notification click HERE]
NRI - OCI - PIO Guide & Information
© Copyright 2006 Nriinformation.com
India’s Currency Ban of High
Denomination Notes
Latest information on currency ban
- What NRIs, OCI and PIO &
Foreigners should know
NRIs who hold money in their NRI accounts in India banks should note that their money is safe. The only restriction currently is that cash withdrawals from bank accounts for a few days is limited to Rupees 20,000 per week which works out to $300 per week. Foreign exchange conversion to Indian currency at airports is also temporarily limited to Rupees 5000 only. This amount may be increased by the Government in the near future. With the surprise announcement by the Government of India to declare Rupees 500 & 1000 currency notes as not legal currency effective November 9, 2016. There are many rumors going around regarding currency in India such as new currency notes having electronic chips to track currency notes etc. These rumors are not true. There have also been reports of some foreign exchange dealers selling US dollars to Indians and charging them Rupees 110 per dollar instead of the current exchange rate of Rupees 67 to a dollar. People seem to be paying this rate of exchange perhaps to get rid of unaccounted money.Here is what we know so far.
As announced by the Government of India, banks are open today [November 10, 2016] most banks will also be open on Saturday & Sunday to cope with the volume of customers to exchange and deposit discontinued currency.How to exchange currency at Indian
banks
1. Fill in the applicable exchange Form [See Sample] 2. I visited Axis Bank today to exchange Rs. 4000 and along with the Form they also want the serial numbers of all currency notes listed on the exchange Form. [Took four hours to get the exchange done!] 3. Take a photocopy of your ID document. [Pan Card or other acceptable ID shown on Form] You must also take the original with you. I had to show mine despite I had take a photo copy. 4. Up to November 24, 2016 only up to Rs. 4000 can be exchanged using the discontinued currency. From November 25, 2016 to December 30, 2016 more than Rupees 4000 exchange is expected to be allowed, however there is no indication of what this limit will be. The time limit to exchange currency at any bank is up to December 30, 2016. 5. Tourists already in the country supposedly can also exchange their 500 & 1000 Rupee notes up to a total value of Rs. 4000 but they must show proof of where they exchanged foreign currency to get the Indian currency notes. Tourists arriving in India can exchange their foreign currency up to a value of only Rupees 5000. Tourists who are planning to visit India in the next month or so, should if possible postpone their visit until the currency situation is rectified.Withdrawal Cash from your Indian
or NRO or NRE bank account in
India is also limited
Those who have bank accounts in India can only withdraw up to Rupees 10,000 at a time with a maximum limit of Rupees 20,000 per week. There have been reports that banks are running out of money and also in some instances restricting withdrawal amounts. Most ATM machines are running out of money fast as supposedly only Rupees 50 & 100 denomination notes are being dispensed. There appears to be a severe shortage of the new notes.Deposit discontinued Rs. 500 & Rs.
1000 currency notes in bank
account
4. From November 10, 2016 to December 30, 2016 Deposits of any amount of Rs. 500 & 1000 currency notes can be made at your Indian bank. You must have a valid bank account at a bank. Proof such as PAN number will be required. NRIs or Foreigners who do not have a Pan Card should ask the bank to give you an exemption from providing PAN Form to fill out. 5. From December 31, 2016 to March 31, 2016 deposits will have to be done at RBI specified offices on showing ID proof, Pan Card and filling in a Declaration Form. Those who deposit more that Rupees 250,000 in their bank accounts, are required to fill a special form declaration indicating source of money. [I deposited Rupees two Lakh that I had withdrawn for my bank on October 21, 2016 and despite the amount being less that 2.5 Lakh, still had to fill this form to deposit the money back in the same account] Any unaccounted money will result in a 200% penalty plus the applicable income tax. This has been announced by the Ministry of Finance. Those who have legitimate money, regardless of the amount need not worry.When will the currency situation in
India expected to improve
Situation will improve as soon as enough currency notes become available. Currently people are somewhat confused and worried. Most small stores do not accept credit cards in India and furthermore not many people have credit cards in India. According to the Reserve Bank of India (RBI) as of October 2014 the total number of credit cards issued by 55 scheduled commercial banks in India is 19.9 million. A small percentage of a population which stands at around 1,341,347,582 [1.34 billion]. The use of cash has been and will probably remain the main mode of payment by most people. The government of India though is trying to get people to adopt alternate means in an effort to track tax evasion. Hopefully some good eventually result when all the issues are sorted out and normalcy returns.NRIs should get Pan Card
NRIs who do not have Pan Card and frequently visit or deal with banks in India are advised to get a Pan Card even though they may be exempt. Pan Card is free, is an excellent form of photo ID in India and will make your life easier when you visit India.
Update Jan 16, 2017
For Latest Available
information on Currency
Rationing in India is
posted at end of this
Page
Update Nov 22, 2016
Currency Notes Rationing India
2.5 Lakh cash for wedding withdrawal only allowed for those with weddings on or before Dec 30, 2016. Only one family member can withdraw. The amount of 2.5 Lakh for wedding can be withdrawn only from your account balance as on Nov 8, 2016. Any deposits made after Nov 8, 2016 cannot be withdrawn for this purpose Withdrawal amount for weddings can be used to make cash payments to only those who do not have a bank account and the names of such recipients who will be paid in cash, must be provided to the bank when applying for withdrawal of 2.5 Lakh for wedding category. Long lines continue all across India at ATMs and banks. Tourists also lining up to exchange money. The weekly limit of Rs.24,000/ not being honored by some banks as they say they are running out of cash. Just spoke to someone who only got Rs. 9000 The Rs. 4500 currency exchange amount has been Reduced to Rs. 2000 from Nov 18 Changes expected to be announced by Nov 25, 2016 Hopefully cash situation will gradually improve. No info yet for NRIs or Foreigners on how they can exchange their currency notes.
Update Dec 30, 2016
Currency Notes Rationing India
The Reserve Bank of India has raised the daily ATM withdrawal limit from Rupees 2500/- per day to Rupees 4500/- per day effective January 1, 2017. However, the maximum weekly limit allowed remains unchanged at Rs. 24,000 per week. New rules specify fines for holding more than 10 currency notes of demonetized Rs. 500/1000 notes after March 31, 2017. The minimum fine is Rupees 10,000 or five times the cash held, whichever is higher.
Update Jan 4, 2017
How NRIs Can Exchange Currency
The Reserve Bank of India has allowed an extension for NRIs & Indians who were abroad between Nov 6 to December 30, 2016 to exchange by deposits Rs. 500/1000 notes by March 31, 2017 for Indians and up to June 30, 2017 for NRIs. As per rules announced, NRIs & Indians will have to show the Rupee notes and get a stamped declaration from customs at point of entry into India. The exchange facility will be available through RBI offices in Chennai, Delhi, Kolkata, Mumbai & Nagpur
Update Jan 16, 2017
ATM withdrawal limit increased
The Reserve Bank of India has raised the ATM cash withdrawal limit to Rs 10,000 per day but left the weekly ceiling of Rs 24,000 unchanged. The withdrawal limit for current accounts has been raised from Rs 50,000 to to Rs 100,000 per week
Update February 8, 2017
RBI currency withdrawal limit
Effective February 20, 2017, the limits on cash withdrawals from the Savings Bank accounts will be enhanced to ₹ 50,000 per week Effective March 13, 2017, there will be no limits on cash withdrawals from Savings Bank accounts. [To view RBI notification click HERE]
