OCI, PIO & Foreigners

holding banned currency

now worthless

“The 500 and 1,000 rupee notes hoarded by anti-national and anti-social elements will become just worthless pieces of paper. The rights and the interests of honest, hard- working people will be fully protected.” PM Modi, November 8, 2016 Have been receiving several questions from OCI holders and PIOs worried about options for Indian currency they hold. Some are still planing to go to India to deposit or exchange their money. Instead of answering individual questions in our FAQ section, I am posting the current situation with some further background and information for our OCI/PIO website visitors. NRIs can deposit any banned currency they hold with RBI until June 30, 2017 at RBI centers in Mumbai, New Delhi, Chennai, Kolkata, and Nagpur. Generally people don’t go into the technical meaning of NRI and it is a common misconception amongst the general public that OCIs and persons of Indian origin (PIO) are all NRIs. This is causing confusion amongst some OCI/PIOs when it comes to NRIs being allowed by RBI a grace period to legitimize banned Indian currency they hold. Furthermore, some OCIs may feel they have the same rights as NRIs.

Do OCI holders get Parity with non-

resident Indians (NRIs)

To some extent yes! The Ministry of Home Affairs in their OCI brochure under the heading, Benefits to an OCI Cardholder under item 6.(iii) [reproduced below] lists the following benefit for OCI holders: 6(iii) Parity with Non-Resident Indians (NRIs) in respect of all facilities available to them in economic, financial, and educational fields except in matters relating to the acquisition of agricultural or plantation properties The word parity generally means to be equality, similarity and this makes some OCI holders wonder if they are also entitled to the benefit of the grace period announced by RBI for NRIs. However, in the case of demonetization it appears that the government is not allowing parity to OCI holders with NRIs. On the question of whether the grace period deposit facility of discontinued currency will also apply to Overseas Citizens of India (OCI) / Persons of Indian Origin (PIO). RBI has said No. the facility is not available to people who are not Indian citizen. This categorically excludes all OCI, PIO and Foreigners and as of now they have no outlet to exchange or deposit any of the banned Indian currency they may hold.

Banned currency now worthless

pieces of paper for OCI, PIOs &

Foreigners

Prime Minister Modi when he made his initial demonetization announcement on November 8, 2016 said that: “The 500 and 1,000 rupee notes hoarded by anti-national and anti-social elements will become just worthless pieces of paper. The rights and the interests of honest, hard-working people will be fully protected.” [full text of PM Modi Nov 8 speech >>] Unless the government makes a positive announcement to help OCI holders and foreign citizens of Indian origin (PIO) who may hold banned Indian currency notes, their money will indeed turn into worthless pieces of paper and despite the earlier assurance of Prime Minister Modi, their rights would not have been protected.