NRIs can exchange old notes till June 30: A step by step guide

Adhil ShettyBankBazaar.comThe demonetization announcement on November 8 banning high denomination currency notes brought with it shock and surprise. Panic-stricken people thronged the banks to convert the defunct currency notes with new ones, demonstrating great urgency. Through the course of the 50 days, economics took the backseat while politics hogged the limelight, to the dismay of many. While most Indians would have had the opportunity to exchange old notes through the banks, post offices and the RBI till December 30, it was indeed a good New Year gift for the NRIs as the RBI announced that they can handover the old notes for new ones at the central bank offices any time before June 30, 2017. This arrived as a blessing for NRIs who were out of the country during the exchange period from November 9 to December 30. Let us see how the exchange exercise could be carried out by NRIs who still possess the banned currency notes. Where to exchange As per the notification issued by the RBI on December 31, the old currency notes could be deposited at the central bank’s offices at Mumbai, Delhi, Kolkata, Chennai, and Nagpur. The facility will be available on all bank working days. The cap for NRIs will be as prescribed in the Foreign Exchange Management Act regulations, that is, Rs 25,000. Requisite documents needed If you are travelling to India during the period ending June 30, carry the demonetized currency notes with you as there is no other option. You are not allowed to nominate anyone else to carry for you, as third party tender is not allowed. Also, you cannot courier the cash, nor can you send the notes through the money exchange facility or use your bank to transfer money. The most important documentation that you need is the customs declaration form. This document vouches for the Special Bank Notes (SBNs) you possess. This is a one-page declaration issued by the customs department at the airport stating the import of SBNs, their value, and count. The form will have the official stamp of the customs department. This declaration of the customs department is mandatory while depositing the notes at the designated offices of the RBI. A false declaration can invite trouble. It can attract a fine of Rs 50,000 or five times the amount imported, whichever is higher. Apart from the customs declaration, NRIs possessing the banned currencies should also submit other documents to deposit the currency notes: • Original passport: The RBI will verify the passport to find out whether the person falls under the definition of NRI. • Immigration stamp in the passport: This is to vouch for the fact that the person concerned was abroad during the period between November 9 and December 30, 2016. • Alternative ID: Apart from the passport, another ID such as Aadhaar or PAN card should be also be produced before the RBI authorities. • Declaration: A declaration should also be submitted that the exchange facility was not availed earlier by the person concerned. • Statement by bank: A statement from the banks, wherever the NRI is an account holder, should be given stating that SBNs were not deposited in any of the banks between November 9 and December 30, 2016. The amount permissible will be credited to the KYC compliant bank account of the NRI after due verification of the relevant documents. The RBI decision to extend the exchange period for NRIs till June 30 is good news for those possessing the banned currencies. They should utilize the RBI window and deposit the defunct notes with relevant supporting documents at the earliest. There is nothing to panic about as long as the money being so deposited is clean money and all documentation is in place.