Demonetization Update for OCIs & PIO
Options for OCI & PIOs who still have banned Indian Currency Notes in India or Abroad
Have received numerous emails from OCI holders and PIOs who currently hold discontinued Indian currency notes and want to know how to
exchange them. Here is an update as of January 17, 2017 of what I am aware of in this regard and what OCIs & PIOs can do with the banned
currency notes in their possession.
I traveled from Chandigarh to Delhi to deposit some banned currency notes at RBI, I also had airport declaration form of this money at RBI but they refused my deposit. As per RBI, any person, aggrieved by the refusal of the Reserve Bank to credit the value of demonetized currency, may represent to the Central Board of the Reserve Bank within fourteen days of the communication of such refusal. Such representations should be addressed to the Central Board, Reserve Bank of India, Secretary’s Department, Central Office Building, 16th Floor, Shahid Bhagat Singh Marg, Mumbai – 400 001. For those interested in contacting RBI for clarification etc. other modes of contacting RBI are: Telephone Nos 022 22602201 & 022 22602944 Email: publicquery@rbi.org.in Does the grace period up to June 30, 207 announced by RBI for NRIs to deposit banned currency with RBI apply to OCI/PIO? No, RBI has specifically stated that the grace period does not apply to OCI/PIO Can OCI/PIO exchange or deposit their discontinued Indian currency notes? As of now [January 17, 2017] there is no exchange or deposit facility for OCI holders or Persons of Indian Origin (PIO) who may hold banned Indian currency notes either in India or abroad. Will the government of India announce a scheme to help OCI/PIO who hold banned currency notes? My guess is as good as yours. Let’s hope something is eventually done but there are no guarantees. Is the currency situation back to normal in India now? No! Although I believe things are getting better as more currency in new notes is printed and becomes available to banks for their customers. While the amount of currency that can be withdrawn by account holders has been increased, RBI limits as to the amount of money people can withdraw from their own bank accounts still exist. See current limits below. ATM withdrawals have now been increased from the previous Rupees. 4500 per day to Rupees 10,000. However, the maximum weekly withdrawal amount is still Rupees 24,000.What can OCI/PIOs do with the currency they hold in India or abroad?
Consider the following and then decide for yourself what you want to do with the discontinued currency you hold: Technically Indian old currency notes of Rupees 1000 & 500 held now by OCI, PIOs have no monetary value. There is no method currently of depositing or exchanging such money, furthermore, it may already be illegal for some people to hold more than 10 banned currency notes, read on . . . Holding more than 10 banned Indian currency notes by any individual calls for penalty of up to Rupees 10,000 or five times the face value of such currency held. It actually became illegal to hold more than the 10 notes after the December 30, 2016 deadline expired for most people. The only exception here currently would be for those to whom the grace period applies to. The final grace period currently in effect is June 30, 2017 Do be aware that the June 30, 2017 grace period announced by RBI is for only Non resident Indians with Indian passports and does not apply to OCI & PIOs.NRIs, OCI & PIOs going to RBI Centers in India to deposit currency
Do be aware that the facility to deposit banned currency notes at RBI is not available at all RBI offices. RBI is offering this deposit facility only in the cities of : • Mumbai • Delhi • Chennai • Kolkata • Nagpur Those who do not live in these cities may have no option but to travel to these cities to facilitate a deposit at RBI centers. Depending on the amount of discontinued money one has to deposit, for some it may not even be worth the trip if it involves travel from another city. Reminder again, RBI is not accepting such deposits from OCI or PIOs.Allow OCIs & PIOs to exchange money for vouchers at Indian consulates
Perhaps the government should have considered allowing those abroad to simply exchange such currency notes for a voucher at Indian consulates abroad in an orderly manner. Something similar to the airport declaration Form announced earlier for NRIs. While Indian Consulates abroad may not have been in a position to exchange banned currency notes, they could have just kept such currency notes and simply issued vouchers stating the amount of currency retained. Such vouchers could have been then deposited in India during future visits to India by OCIs & PIOs. One can only hope that the government of India may at some point decide to help OCIs & PIOs so they do not lose their money. However, as time goes by, it does not look very encouraging.
•
•
[January 17, 2017]
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 - OCI - PIO Guide & Information
N
RI Information
Informing
educating and connecting Indians across the globe
© Copyright 2006 Nriinformation.com
Demonetization Update for
OCIs & PIO
Options for OCI & PIOs who still have banned
Indian Currency Notes in India or Abroad
Have received numerous emails from OCI holders
and PIOs who currently hold discontinued Indian
currency notes and want to know how to exchange
them. Here is an update as of January 17, 2017 of
what I am aware of in this regard and what OCIs &
PIOs can do with the banned currency notes in their
possession.
I traveled from Chandigarh to Delhi to deposit some banned currency notes at RBI, I also had airport declaration form of this money at RBI but they refused my deposit. As per RBI, any person, aggrieved by the refusal of the Reserve Bank to credit the value of demonetized currency, may represent to the Central Board of the Reserve Bank within fourteen days of the communication of such refusal. Such representations should be addressed to the Central Board, Reserve Bank of India, Secretary’s Department, Central Office Building, 16th Floor, Shahid Bhagat Singh Marg, Mumbai – 400 001. For those interested in contacting RBI for clarification etc. other modes of contacting RBI are: Telephone Nos 022 22602201 & 022 22602944 Email: publicquery@rbi.org.in Does the grace period up to June 30, 207 announced by RBI for NRIs to deposit banned currency with RBI apply to OCI/PIO? No, RBI has specifically stated that the grace period does not apply to OCI/PIO Can OCI/PIO exchange or deposit their discontinued Indian currency notes? As of now [January 17, 2017] there is no exchange or deposit facility for OCI holders or Persons of Indian Origin (PIO) who may hold banned Indian currency notes either in India or abroad. Will the government of India announce a scheme to help OCI/PIO who hold banned currency notes? My guess is as good as yours. Let’s hope something is eventually done but there are no guarantees. Is the currency situation back to normal in India now? No! Although I believe things are getting better as more currency in new notes is printed and becomes available to banks for their customers. While the amount of currency that can be withdrawn by account holders has been increased, RBI limits as to the amount of money people can withdraw from their own bank accounts still exist. See current limits below. ATM withdrawals have now been increased from the previous Rupees. 4500 per day to Rupees 10,000. However, the maximum weekly withdrawal amount is still Rupees 24,000.What can OCI/PIOs do with the currency they
hold in India or abroad?
Consider the following and then decide for yourself what you want to do with the discontinued currency you hold: Technically Indian old currency notes of Rupees 1000 & 500 held now by OCI, PIOs have no monetary value. There is no method currently of depositing or exchanging such money, furthermore, it may already be illegal for some people to hold more than 10 banned currency notes, read on . . . Holding more than 10 banned Indian currency notes by any individual calls for penalty of up to Rupees 10,000 or five times the face value of such currency held. It actually became illegal to hold more than the 10 notes after the December 30, 2016 deadline expired for most people. The only exception here currently would be for those to whom the grace period applies to. The final grace period currently in effect is June 30, 2017 Do be aware that the June 30, 2017 grace period announced by RBI is for only Non resident Indians with Indian passports and does not apply to OCI & PIOs.NRIs, OCI & PIOs going to RBI Centers in India
to deposit currency
Do be aware that the facility to deposit banned currency notes at RBI is not available at all RBI offices. RBI is offering this deposit facility only in the cities of : • Mumbai • Delhi • Chennai • Kolkata • Nagpur Those who do not live in these cities may have no option but to travel to these cities to facilitate a deposit at RBI centers. Depending on the amount of discontinued money one has to deposit, for some it may not even be worth the trip if it involves travel from another city. Reminder again, RBI is not accepting such deposits from OCI or PIOs.Allow OCIs & PIOs to exchange money for
vouchers at Indian consulates
Perhaps the government should have considered allowing those abroad to simply exchange such currency notes for a voucher at Indian consulates abroad in an orderly manner. Something similar to the airport declaration Form announced earlier for NRIs. While Indian Consulates abroad may not have been in a position to exchange banned currency notes, they could have just kept such currency notes and simply issued vouchers stating the amount of currency retained. Such vouchers could have been then deposited in India during future visits to India by OCIs & PIOs. One can only hope that the government of India may at some point decide to help OCIs & PIOs so they do not lose their money. However, as time goes by it does not look very encouraging.
•
•
