Exchanging old Rs 500 and 1000 notes after 31 Dec 2016

#1 Jan 18th, 2017, 00:50
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  • teamindia is offline
#1
Hi all,

I'm in a predicament here.

Thought I could exchange my old rupees here at RBI Delhi after I flew into India in early Jan, but turns out foreigners are ineligible for the exchange during this grace period after 31 Dec 2016.

Is there any way I can still exchange my rupees - have about 5,000 worth - before I leave India in a few days time? Not sure if the departure area at the airport would accept them... My only hope at the moment is to try and sell them off in Paharganj, Delhi, for much lesser value.

Please advice - that'd be very helpful. Thanks!
#2 Jan 18th, 2017, 01:14
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#2
As a foreigner, you have no alternative. If you can get a few rupees for that, my advice is that you take the offer - if anyone is still buying the notes.

Only Indian nationals who were overseas during the November to December period can change the old notes.

See Sections 3 to 7 of this RBI (Reseve Bank of India) FAQ:

https://www.rbi.org.in/Scripts/FAQView.aspx?Id=122

Quote:
Frequently Asked Questions

Withdrawal of Legal Tender Character of the Old Bank Notes in the denominations of ₹ 500 and ₹ 1000 and The Specified Bank Notes (Cessation of Liabilities) Ordinance 2016


(Updated as on January 17, 2017)


1. Why was the Scheme of Withdrawal of Legal Tender Character of the old Bank Notes in the denominations of ₹ 500 and ₹ 1000 introduced?
The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes look similar to genuine notes, even though no security feature has been copied. The fake notes are used for antinational and illegal activities. High denomination notes have been misused by terrorists and for hoarding black money. India remains a cash based economy hence the circulation of Fake Indian Currency Notes continues to be a menace. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw legal tender character of the old Bank Notes in the denominations of ₹ 500 and ₹ 1000 was introduced.
2. What is this scheme?
The legal tender character of the bank notes in denominations of ₹ 500 and ₹ 1000 issued by the Reserve Bank of India till November 8, 2016 (hereinafter referred to as Specified Bank Notes) stands withdrawn. In consequence thereof these Bank Notes cannot be used for transacting business and/or store of value for future usage. The Specified Bank Notes (SBNs) were allowed to be exchanged for value at RBI Offices till December 30, 2016 and till November 25, 2016 at bank branches/Post Offices and deposited at any of the bank branches of commercial banks/Regional Rural Banks/Co-operative banks (only Urban Co-operative Banks and State Co-operative Banks) or at any Head Post Office or Sub-Post Office during the period from November 10, 2016 to December 30, 2016.

The facility for exchange / deposit of SBNs stands closed with effect from December 31, 2016.
3. What is the Specified Bank Notes (Cessation of Liabilities) Ordinance 2016?
The Specified Bank Notes (Cessation of Liabilities) Ordinance 2016 has been promulgated by the President of India (GoI Ordinance No. 10 of 2016 dated December 30, 2016) to provide for cessation of liabilities on the Specified Banknotes and for connected/incidental matters and comes into effect from December 31, 2016. In terms of this ordinance, with effect from December 31, 2016, the Specified Bank Notes shall cease to be the liabilities of the Reserve Bank of India and shall cease to have the guarantee of the Central Government.

A grace period has been provided during which the Specified Bank Notes can be deposited at five RBI Offices (Mumbai, New Delhi, Chennai, Kolkata, and Nagpur) in accordance with this Ordinance by Indian citizens who make a declaration that they were outside India between November 9 and December 30, 2016, subject to conditions or any class of persons for reasons that may be specified by notification by the Central Government.

The Reserve Bank, if satisfied after making the necessary verifications, that the reasons for failure to deposit the notes till December 30, 2016 are genuine, will credit the value of notes in the KYC (Know Your Customer) compliant bank account of the tenderer.

Holding the specified banknotes (SBNs) for the purpose of deposit by Resident Indian citizens who were abroad during November 9, 2016 to December 30, 2016 and Non Resident Indian citizens who were abroad during November 9, 2016 to December 30, 2016 is permissible during grace period. With effect from January 2, 2017 Resident Indian citizens who were abroad during November 9, 2016 to December 30, 2016 can avail this facility upto March 31, 2017 and Non Resident Indian citizens who were abroad during November 9, 2016 to December 30, 2016 can avail this facility upto June 30, 2017. While there is no monetary limit for exchange for the eligible Resident Indians, the limit for NRIs will be as per the relevant FEMA Regulations. In terms of Section 6 of the Ordinance, whoever knowingly or wilfully makes any false declaration shall be punishable with a fine which may extend to 50,000 INR or five times the amount of the face value of the SBNs tendered whichever is higher. Any person aggrieved by the refusal of the Reserve Bank to credit the value of notes as mentioned above may make a representation to the Central Board of the Reserve Bank within 14 days of the communication of such refusal to him/her.

In terms of Section 5 of the Ordinance, from December 31, 2016 no person shall knowingly or voluntarily hold, transfer or receive any specified banknotes. After the expiry of grace period, holding of not more than 10 notes in total, irrespective of denomination or not more than 25 notes for the purpose of study/ research/ numismatics is permitted. In terms of Section 7, contravention of Section 5 shall be punishable with fine which may extend upto 10,000 INR or five times the face value of the SBNs involved in the contravention, whichever is higher.

In case the contravention/default in terms of Sections 6 and 7 is by a company, every person who was in charge of and responsible to the company at the time of contravention/ default shall deemed to be guilty and will be liable to be proceeded against and punished. If the offence is proved to be attributable to the conduct by any director/manager/secretary/officer/employee of the company, such person shall also be deemed to be guilty of the offence and will be liable to be proceeded against and punished accordingly.
4. How can NRIs and the Indian citizens who were abroad exchange the SBNs?
In terms of Paragraph 4.1 of the GoI Ordinance No. 10 of 2016 dated December 31, 2016 on “The Specified Bank Notes (Cessation of Liabilities), a facility for exchange of SBNs is made available for the resident and non-resident citizens who could not avail the facility from November 10 to December 30, 2016 on account of their absence from India during the aforementioned period. The facility will remain open for residents from January 2, 2017 to March 31, 2017 and for NRIs from January 2, 2017 to June 30, 2017 at five Reserve Bank offices at Mumbai, New Delhi, Chennai, Kolkata, and Nagpur.

The facility can be availed only in individual capacity and only on one occasion during the period. No third party tender is permissible under the facility.

This facility will not be available for Indian citizens resident in Nepal, Bhutan, Pakistan and Bangladesh.

The details of the facility including terms/ conditions and modalities thereof are available in our circular DCM (Plg) No 2170/10.27.00/2016-17 dated December 31, 2016.

Link to tender form for Resident Indians and NRIs available here.
5. Is the facility for exchange of SBNs by NRIs available outside India?
No. For NRIs the facility is available from January 2, 2017 to June 30, 2017 at five Reserve Bank offices at Mumbai, New Delhi, Chennai, Kolkata, and Nagpur. The limit of exchange for NRIs will be as per the relevant FEMA Regulations.
6. Is the facility available to Overseas Citizens of India (OCI)/Persons of Indian Origin (PIO)?
No, the facility is not available to OCIs/PIOs.
7. Is the facility available to resident Indians?
No, the facility is not available to all resident Indians, but only to those who were not in India during the period November 9, 2016 to December 30, 2016.

...
Last edited by ViShVa; Jan 18th, 2017 at 07:51.. Reason: Formatting
#3 Jan 18th, 2017, 01:39
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#3
Agree with ViShVa to sell it off, if you get a buyer, at a lower rate.
#4 Jan 18th, 2017, 23:47
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#4
Ebay to collectors. I kept one..
#5 Jan 19th, 2017, 01:08
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#5
II have around 2.5k in old 1k n 500rs note , please tell me how to exchange the same . I am Indian and don't find any buyer , plz suggest ..
#6 Jan 19th, 2017, 02:10
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  • aarosh is offline
#6
Haven't you read the above long post by ViShVa?
#7 Jan 19th, 2017, 06:55
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#7
My post was short and succinct. the RBI quote was long.

Here, in London, I have Rs.4500 (luckily not more - last year, I had nearly Rs.20,000) of my own hard-earned and cherished mullah (money) and was relying on the info and assurances detailed in the daily-changing RBI FAQs since November 8, 2016. I did not send the money pre-December 30th for deposit into my Indian account relying on their (RBI's and Government's) assurances.

Bah! Humbug! "chaar sau bees" (420)!

I've been gypped, royally, out of my own precious mullah by the Bharatiya Sarkar (Indian Government)!

Now that "promise", printed on the notes I hold, is worthless. I plan to make cheroots out of 'em out of Virginia baccy (tobacco) (Virginian baccy, because the noble State had the largest proportion (State-wise) of Trump supporters/voters).

Luckily I am an endangered species - a smoker.
#8 Jan 19th, 2017, 12:24
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#8
Really, I thought that VA was all Govt. employees and I know how they voted..
#9 Jan 19th, 2017, 14:31
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#9
After moving back to the EU I also found a couple of overlooked 500 and 1000 INR bills that are no longer good for anything. Also considering getting some tobacco, rolling a couple of big ones and simply smoking them. Curious how it'll taste vs a beedi.
"It is preferable to have a criminal for a servant rather than a fool because a criminal's actions are predictable and you can protect yourself against them, whereas there is no telling what a fool's next move will be.
#10 Jan 21st, 2017, 01:41
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#10
Quote:
Originally Posted by edwardseco View Post Really, I thought that VA was all Govt. employees
Not beyond the Beltway.
#11 Jan 23rd, 2017, 23:45
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#11
Thanks for the reply. I haven't been able to get them off my hands in Delhi - a money exchange guy quoted me 10% of the value however. I'll be planning to get help from friends of friends who are NRIs and going back to India to resolve their money issues. Hope it works out somehow for everyone else!
#12 Jan 24th, 2017, 21:19
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#12

OCI card holder and 4k left

Hello!

I had 4.000 rupees in Poland and I only travelled mid-December there. I called RBI and enquired in many places that assured me that when I come back in Jan, I will be able to exchange the money. I was also told that as an OCI I have a right to do so.

On my way back I wanted to obtain a declaration form at customs. I was told I can't declare the money as I am an OCI. If for instance my husband had been with me, they would have given it to him because he's an Indian national.

Now, my question is, is it legal/ok to send money via post/courier? If these notes are worthless now, then would there be any issue? My mom-in-law has been in the US for a long time and is soon returning. I thought of sending her the notes and she could declare these at customs. If that happens, does any other person can exchange the money on her behalf?

If that doesn't work, where to look for people who can buy old notes at a lower rate?

Thanks!
#13 Jan 24th, 2017, 22:36
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#13
Quote:
Originally Posted by ViShVa View Post My post was short and succinct. the RBI quote was long.

Here, in London, I have Rs.4500 (luckily not more - last year, I had nearly Rs.20,000) of my own hard-earned and cherished mullah (money) and was relying on the info and assurances detailed in the daily-changing RBI FAQs since November 8, 2016. I did not send the money pre-December 30th for deposit into my Indian account relying on their (RBI's and Government's) assurances.

I've been gypped, royally, out of my own precious mullah by the Bharatiya Sarkar (Indian Government)!

Now that "promise", printed on the notes I hold, is worthless.
In previous years I always kept less than 10,000 which used to be the limit but last year or was it in 2015 the limit that you could take out was increased by RBI/FEMA to Rs. 25,000 and sure I got sucked in and now I am stuck with Rs. 16,000 of old junked notes for my India album

In retrospect I should have tried to send my old notes to India but the RBI rules about NRIs were not too clear to me and I thought we the India origin foreign passport holders were part of the greater NRI diaspora and we had till June 30, 2017 to take our notes to the 5 designated RBI offices.

So what is now the value of the "I promise to pay" assurance on the notes and it is tragic that the much respected institution of the Reserve Bank of India has been hijacked by the prime minister for his political agenda
#14 Feb 2nd, 2017, 15:04
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#14
Has anyone here been successful in getting their old bills exchanged at the RBI?
#15 Feb 13th, 2017, 03:49
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#15

Exchanging old Rs 500 and 1000 notes after 31 Dec 2016

Quote:
Originally Posted by crvlvr View Post Has anyone here been successful in getting their old bills exchanged at the RBI?
I got back yesterday from a 2 day excursion to bangalore. No one wants the old currency.

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