A few months are left to exchange defunct notes of INR 500 and INR 1000 in India. For natives, this facility has already been ceased. But non-residents would be considered as an exception. Provided that they have provided the authentic declaration of staying abroad right after 8th November for 50 days, they would be liable to enjoy grace period for exchanging that old currency.
What if the non-residents knowingly make incorrect declaration?
When any NRI knowingly and willfully makes declaration, the evidence is also sought. If those evidences are proved invalid or incorrect, they have to face off severe punishment. The government has provisioned two punishments: i.e.:
- Penalty worth INR 50,000
- Or, five times the amount of the face value of a particular bank
The offender shall be liable to face off the penalty of whatsoever shall be higher out of the foretold penalties.
Locals may keep 10 notes of junked currency that must not be valued more than INR 10,000. And if someone commits this offence, he/she shall be liable to pay fine of INR 10,000 or five times of the face value of the specific bank. Eventually, the quantum of penalty shall be measured on the basis of the money found.
Extension of the date to exchange defunct currency:
As aforementioned, only NRIs can enjoy the leverage or grace period for exchanging scrapped currency. Officially, they can exchange till June 2017 provided that they have showcased valid proof of their absence during that crunch time.
OCIs are not eligible for exchanging money:
Person of Indian origin (PIO) and overseas citizens (OCIs) are keeping their eyes on every RBI’s declamation. But till the date, there is no grace period announced for them.
The emigrants who get OCI card would have to encounter some differentiation from non-residents. This is the crunch time when such card holders would be pretty disappointed since they shall be unable to exchange junk notes. However, the Modi-led government has shown its friendliness with the emigrants who are originated from India.
Perhaps, there are some valid reasons behind this decision. Let’s look into what are these.
Why OCIs not eligible for exchange?
- Limit of currency taken abroad: India’s Foreign Exchange Management Act (FEMA) disallows parking INRs while immigrating abroad. In 2004, the non-residents were permitted to take along only INR 5,000. This limit was shrunk to INR 100 if the immigration is en route to Nepal and Bhutan.
But foreigners, including OCIs, were prohibited to take any Indian currency along. In case, anyone did so, he used to be punished under the violation of FEMA.
Later, the rule was amended and OCIs were also allowed to immigrate with INR 25,000 like NRIs. They were allowed to bring in the same amount inside anytime. But Indian notes are not valid in abroad. While bearing this act in mind, the government has provided no grace period to OCIs.
- Compulsory to exchange: It’s a rule to be abided by compulsorily that every foreigner or non-resident has to exchange the entire Indian currency with them into foreign currency while taking the flight to any country. This facility is available at the international airports in India. This can be another principal cause of denying exchange to OCIs.