RBI announces facility for Non-resident Indians (NRIs) to Exchange Defunct Notes as a result of Demonetisation.

Reserve Bank of India on the last day of the year 2016, provided some relief to Non-resident Indians (NRIs). NRIs have now been permitted to exchange old Rs 500 and Rs 1000 currency notes till June 30, 2017. These high currency notes had become defunct consequent to Demonetisation. Also Resident Indians who were abroad in the time period from November 9 to December 30, 2016 have been permitted to tender their notes till March 31, 2017.

RBI stated that they can avail this facility in their individual capacity once during the period on submission of ID documents, such as, Aadhaar number, Permanent Account Number (PAN) etc. They have to submit documentary evidence showing they were abroad during the period and, that they have not availed the exchange facility earlier.

For NRIs, while coming back to India, the number and denominations of the Specified Bank Notes (SBNs) would have to be declared to the customs authorities at the airports and other entry points.The details of the declaration and statements that are required to be submitted along with the SBNs(Specified Bank Notes) at the time of deposit in RBI issue offices will be later announced by RBI.

On fulfillment of the terms and conditions and the genuineness of the notes tendered, admissible amount will be credited to the tenderer’s KYC compliant bank account. This facility will be available through Reserve Bank offices at Mumbai, New Delhi, Chennai, Kolkata and Nagpur. Any person, aggrieved by the decision of the Reserve Bank may prefer an appeal to the Central Board of the Reserve Bank within 14 days of the communication of such refusal to him. Such representations may be addressed to the Central Board, Reserve Bank of India, Secretary’s Department.

The facility will be available through Reserve Bank offices at Mumbai, New Delhi, Chennai, Kolkata, and Nagpur. The finance ministry said once the deposit period gets over, the liabilities of RBI and the guarantee of the central government towards Specified Bank Notes (SBNs) will stand extinguished. After this period, holding, transferring and receiving such notes will attract a fine of Rs10,000 or five times the value of the notes, whichever is higher.

According to RBI, Indian citizens resident in Nepal, Bhutan, Pakistan and Bangladesh cannot avail this facility. The country’s central bank also elaborated that third-party tender will not be accepted under this new facility.