NRIs to exchange old currency at designated RBI facilities

NRIs will need to declare the deomentised notes at the customs authority The exchange facility will be made available viz. the RBI offices at Mumbai, New Delhi, Chennai, Kolkata, and Nagpur

December 30 was the last day for the submission of old demonetised notes in India. On the same day, President Pranab Mukherjee approved an ordinance allowing more time for non-resident Indians to deposit their old notes and imposing stiff fines on residents holding or trading in demonetised currency.

This facility has been granted to all Indian citizens who were outside India from 9th November, 2016 to 30th December, 2016 to tender these Specified Bank Notes (SBN) at the specified Issue Offices of RBI until 31st March, 2017. So now the RBI has announced that it will introduce a facility for exchange of the discontinued bank notes for NRIs.

      At the time of return to India the number and denominations of the SBN will need to be declared to the Customs authorities at the airports and other entry points. Any false           declaration will invite a fine of ₹50,000 or five times the amount of the face value of the SBN tendered, whichever is higher.

Under this notification by the RBI the points to note are

• The facility is available only to those tenderers whose accounts are KYC compliant and those who have not deposited SBNs into their accounts from November 10 to December 30, 2016.

• As the above information is available with the banks, specific offices of RBI will be approaching the banks for: (i) confirming the KYC status and (ii) information on deposits of SBNs, if any, into the accounts of the tenderers. The banks are, therefore, advised to put in place an arrangement to furnish the required information within 7 days from the date of receipt of request.

This facility will be made available through five of the offices of the Reserve Bank viz. the Reserve Bank offices at Mumbai, New Delhi, Chennai, Kolkata, and Nagpur. The above facility would be subject to the regulations of the notification “Foreign Exchange Management (Export and Import of Currency) Regulations, 2015. As per these Regulations bringing back such currency into the country is restricted to ₹25,000/- per person. Separate FEMA provisions are applicable to persons in Nepal and Bhutan which would continue to apply.

The documents an NRI will need to furnish are as follows:

• Copy of Passport with immigration stamp as proof of the individual’s absence from the country during the period November 9, 2016 to December 30, 2016 should be submitted. Passport in original should be presented at the RBI counter for verification.

• A certificate issued by Indian Customs on arrival through Red Channel after December 30, 2016 indicating the import of SBNs, with details and value thereof should also be submitted.

• Copies of statements of all bank accounts in India evidencing that no SBNs were deposited during November 10, 2016 to December 30, 2016.

• Requisite document as per provisions of Section 114B of IT Rules, 1962 are required to be submitted.

• An acknowledgment of receipt will be issued to the tenderers pending credit of admissible amount.

On ascertaining that the tenderer was abroad during the period from November 9, 2016 and December 30, 2016, the account is KYC compliant, fulfilment of other conditions and the genuineness of the notes tendered, admissible amount will be credited to the account under advice to the tenderer.

Further, to prevent any continued parallel transactions with the SBNs by unscrupulous elements, after this period, holding, transferring and receiving SBNs will attract a fine of ₹10,000 or five times the amount of the face value of the SBN involved in the contravention, whichever is higher.