The Indian diaspora in the UK is still worried about their old Rs 500 and Rs 1000 banknotes they have with them, as the deadline to deposit the cash draws close (30 Dec). Awaiting PM NaMo's special consideration to allow them deposit the old currency here, some people wrote to Asian Voice, asking for a solution.
As we know British Indians can leave India with Rs 25,000 per person. Individually it is a small amount of money but collectively (200,000 visitors/year) it is around Rs 2500 Crore (£250mn) over a period of 5 years. Asian Voice has proposedthat the Indian government allows Brit-Indians and NRIs to be allowed to deposit their money at Indian banks here in the UK after the necessary due diligence (eg proof of their last travel to India etc). They could withdraw this amount from their NRO account, whenever they visit India in the near future, after showing the deposit receipts.
The RBI has confirmed that anyone visiting can still leave India with Rs 25,000 but in legal tenders (the new notes).
Rt Hon Keith Vaz, told Asian Voice, “In November, I wrote to Prime Minister Modi, following a meeting with the acting Indian High Commissioner to he United Kingdom, HE Dinesh Patnaik. In that letter I proposed three measures, which would adrress the concerns of the diaspora:
“1. Extending the deadline for the exchange of Rupees, for Indians living overseas, to after the Summer Holidays in 2017.
“2. Allowing British Indians to be able to deposit and exchange currency in Indian banks in the UK
“3. Appointing a Special Envoy to the British Indian diaspora, based in the Indian High Commission.
“With regards to the exchange of currency in Indian banks based in the United Kingdom, I have now received a response from Mark Carney, Governor of the Bank of England.
“The Goveror has looked into this matter in great detail. He has now confirmed that all possible obstacles to this proposal have now been removed, and the Indian government can make the decision to permit currency exchanges in the UK at will.
“I have therefore written again to Prime Minister Modi, as well as Finance Minister Arun Jaitley to ask that they strongly consider allowing the currency to be exchanged in the United Kingdom.”
At the moment, NRIs would personally need to exchange the notes in India or authorise someone to do it for them. The foreign branches of Indian banks, both public and private sector, are not accepting cash outside the country.
- If NRIs are travelling to India between 9 nov 2016 to the 30 December 2016, they can exchange or deposit it in their NRO account.
- If NRIs are travelling to the country between 02 January and 31 March 2017, they can visit any of the specified offices of the RBI along with the required documentation, passport and visa details, that prove they were out of the country and exchange the notes. Although the list of RBI offices that will accept this is still unclear.
- If NRIs have the banknotes in India, they may authorize in writing enabling another person in India to deposit the notes into their bank account. The authorized person has to come to the bank branch with the notes, the authority letter given by you and a valid identity proof to deposit the money on your behalf.
- If NRIs have the money abroad, they can send the money across to India through someone trustworthy and authorize them to deposit it on their behalf.
Sources reveal that the Indian Prime Minister Narendra Modi is seriously considering the proposal and the newspaper is hopeful that the deadline to exchange Indian currencies will not only be extended, but Indian banks in the UK may allow depositing these currencies here locally, as requested. It is perhaps wise to keep in touch with your local Indian bank branch to hear about updates, if any.
