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How NRIs (and Indians Abroad) Can Exchange The Old Rs.500 And Rs.1000 Notes

The facility for exchange or deposit of demonetized banknotes of denomination Rs.500 and Rs.1000 ended on Dec 30, 2016.

However, grace period has been provided to the 
a) Non-Resident Indians and 
b) Resident Indians 
who were abroad during Nov 9 to Dec 30, 2016 i.e. the normal period stipulated for such exchange.

In this connection,
a) the Govt. of India has issued an ordinance The Specified Bank Notes (Cessation of Liabilities) Ordinance dated Dec 30, 2016
and
b) RBI has issued a notification Facility for exchange of Specified Bank Notes during Grace Period dated Dec 31, 2016.

As per the aforesaid regulations, this facility for exchange or deposit of the old Rs.500 and Rs.1000 banknotes during the grace period, is available only at the offices of the Reserve Bank of India in Mumbai, New Delhi, Chennai, Kolkata and Nagpur.

And, the terms and conditions for the same, are discussed below.

Exchange of Demonetized Banknotes by the Non-Resident Indians


1. Only those NRIs — who were not in India during the period Nov 9 to Dec 30, 2016 — are eligible to avail this facility of grace period.

2. People who are not an Indian citizen including Overseas Citizens of India (OCI) and Persons of Indian Origin (PIO) CANNOT avail this facility.

3. Indian citizens, resident in Nepal, Bhutan, Pakistan and Bangladesh, too CANNOT avail this facility.

4. Bank accounts held by eligible persons should be KYC compliant.

5. The exchange can be done ONLY ONCE and in the individual capacity only. Third party tendering is not permitted. 

6. This facility is open till June 30, 2017.

7. Banknotes for exchange have to be submitted along with the Tender Form (Annex 2)

8. Only up to Rs.25,000 per person can be exchanged (depending on when the notes were taken out of India as per relevant FEMA rules)


exchange-500-1000-rupee-banknotes
Facility for exchange of Demonetized Banknotes during the Grace Period

9. As a proof of absence from India during Nov 9 to Dec 30, 2016, copy of the passport with the relevant immigration stamp has to be furnished. For verification, the original passport has to be presented at RBI.

10. As a proof of import of old Rs.500 and Rs.1000 banknotes, certificate issued by Indian Customs on arrival through Red Channel after Dec 30, 2016 indicating details of specified banknotes brought into India, has to be furnished.

11. As a proof of no deposits being made during the period Nov 10 to Dec 30, relevant statements of all bank accounts have to be furnished.

12. Copy of PAN Card (or Form 60) too has to be submitted.

Before crediting the account, RBI will verify that
- the person was not in India during Nov 9 to Dec 30, 2016
- his bank account is KYC compliant
- other conditions have been duly fulfilled
- banknotes submitted are genuine.

Exchange of Demonetized Banknotes by the Resident Indians


1. Only those resident Indians — who were abroad during the period Nov 9 to Dec 30, 2016 — are eligible to avail this facility of grace period.

2. Bank accounts held by eligible persons should be KYC compliant.

3. This facility is open till March 31, 2017.

4. There is no limit on the total amount of demonetized banknotes that can be submitted.

5. Banknotes for exchange have to be submitted along with the Tender Form (Annex 1) AND documentary evidence to show that they were abroad during the said period.

6. As a proof of absence from India during Nov 9 to Dec 30, 2016, copy of the passport with the relevant immigration stamp has to be furnished. For verification, the original passport has to be presented at RBI.

7. As a proof of no deposits being made during the period Nov 10 to Dec 30, relevant statements of all bank accounts have to be furnished.

8. Copy of Valid ID Proof / Aadhaar Card has to be submitted.

9. Copy of PAN Card (or Form 60) too has to be submitted.

Before crediting the account, RBI will verify that
- the person was travelling abroad during Nov 9 to Dec 30, 2016
- his bank account is KYC compliant
- other conditions have been duly fulfilled
- banknotes submitted are genuine.

PUNISHMENT
Those who, knowingly or willfully, make a wrong declaration will have to pay a fine of up to Rs.50,000 or five times the amount of the face value of the demonetized banknotes submitted, whichever is higher.

YOU MAY BE INTERESTED IN KNOWING THAT
People can hold up to 10 notes in total (irrespective of the denomination) OR up to 25 notes for the purpose of study/ research/ numismatics. If excess number of such banknotes are discovered, the person will have to pay a fine of up to Rs.10,000 or five times the face value of the demonetized banknotes held, whichever is higher.

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