Currency Rationing in India - Problems Continue for Tourists
Foreign tourists face problems due to currency ban in India [updated December 3, 2016]
Long lines in India in front of banks and ATM machines is a common site now following the withdrawal of high denomination currency notes. Shortage of cash continues, as per news reports today, people who have lined up in front of banks for several hours either leave with only a small amount of money or no money at all as the amount of money allotted to the bank runs out. Several banks impose restrictions on the amount customers can withdraw and the facility to exchange foreign money is next to impossible. Tourists are also seen lining up with the local population at banks. On November 24, 2016 I walked around Connaught Place in New Delhi and tried to exchange some US dollars. Most foreign exchange dealers I visited said they could not cash US dollars as they had no money in the new currency notes. Chawla Forex Money Changer store offered to exchange US dollars @ of only Rupees 59 per dollar even though their store board stated they had the "Best Rates in City" The actual rate of exchange was slightly above Rupees 68 to one US dollar! There have been reports in the Indian news media about tourists preforming on streets and even resorting to begging to get money as they have suddenly been left with currency notes that are worthless. Tourists have no bank accounts in India and many tourists who previously cashed currency at various foreign exchange outlets and did not get encashment receipts, were unable to exchange even the allotted limited amount of old currency notes. Some stores have offered to accept US dollars as payment for purchases from their stores. However here again the exchange rates are way low than the actual market rate. There are signs across the city stating that those using fake I D’s to deposit discontinued currency notes of Rupees 1000 and 500 would be liable to prosecution. The Government of India has now announced a sort of amnesty for those with unaccounted money to pay 50% as tax & penalty and get a clean chit for such money. The previous amnesty scheme offered a tax payment of 45%. Although people in lines to withdraw money complain about the lack of currency withdrawal availability the majority of them seem to consider the demonetization in a positive way expecting a positive result in the long run. Hopefully situation will improve as more currency notes get printed and come into circulation. Currently those who are planning to visit India within the next few months would be better of postponing their visit to India if possible if they need Indian currency while touring India.
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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
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Currency Rationing in India -
Problems Continue for
Tourists
Foreign tourists face problems due
to currency ban in India [updated
December 3, 2016]
Long lines in India in front of banks and ATM machines is a common site now following the withdrawal of high denomination currency notes. Shortage of cash continues, as per news reports today, people who have lined up in front of banks for several hours either leave with only a small amount of money or no money at all as the amount of money allotted to the bank runs out. Several banks impose restrictions on the amount customers can withdraw and the facility to exchange foreign money is next to impossible. Tourists are also seen lining up with the local population at banks. On November 24, 2016 I walked around Connaught Place in New Delhi and tried to exchange some US dollars. Most foreign exchange dealers I visited said they could not cash US dollars as they had no money in the new currency notes. Chawla Forex Money Changer store offered to exchange US dollars @ of only Rupees 59 per dollar even though their store board stated they had the "Best Rates in City" The actual rate of exchange was slightly above Rupees 68 to one US dollar! There have been reports in the Indian news media about tourists preforming on streets and even resorting to begging to get money as they have suddenly been left with currency notes that are worthless. Tourists have no bank accounts in India and many tourists who previously cashed currency at various foreign exchange outlets and did not get encashment receipts, were unable to exchange even the allotted limited amount of old currency notes. Some stores have offered to accept US dollars as payment for purchases from their stores. However here again the exchange rates are way low than the actual market rate. There are signs across the city stating that those using fake I D’s to deposit discontinued currency notes of Rupees 1000 and 500 would be liable to prosecution. The Government of India has now announced a sort of amnesty for those with unaccounted money to pay 50% as tax & penalty and get a clean chit for such money. The previous amnesty scheme offered a tax payment of 45%. Although people in lines to withdraw money complain about the lack of currency withdrawal availability the majority of them seem to consider the demonetization in a positive way expecting a positive result in the long run. Hopefully situation will improve as more currency notes get printed and come into circulation. Currently those who are planning to visit India within the next few months would be better of postponing their visit to India if possible if they need Indian currency while touring India.
