The government of India has scrapped the Rs 500 and Rs 1000 currency notes with effect from November 9, 2016. Individuals who are having some cash with them can exchange the same at the banks, post offices within the limit prescribed as per the norms.
The specified banknotes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till 30th December 2016.
However, any amount above Rs 2.5 lakh will come under tax scrutiny.
Different ways NRI's can exchange Rs 500, Rs 1000 old currency.
Authorize a Person
If an individual is not in India, he can authorize a person in writing enabling that person in India to deposit the notes in your bank accounts. The authorized person should visit the bank with old high denomination notes along with authority letter and a valid ID and address proof such as PAN card, Aadhaar.
NRI's can also deposit the Old High Denomination (OHD) notes to their NRO accounts. NRO accounts could be in the form of current, savings, recurring or fixed deposit accounts.
NRI's who are not having an NRO Account would be forced to think about alternatives, while many experts suggest an NRO account for smooth transactions. Non-residents can later transfer funds from NRO to NRE account.
Exchange In India
NRI's who have plans to visit India before December 31, 2016, can get currency to India and exchange the same.
If you have no plans, you can exchange the same until March 31, 2017.
NRI's who have no plans to visit India can exchange their currency with their money-exchange and convert the same into pounds, dollars, or other local currency.
However, there are chances that you may lose some amount in conversion, fees and depending on the currency rates.
A foreign tourist can purchase foreign exchange equivalent to Rs 5,000 using these notes at airport exchange counters before November 11, 2016, by furnishing present proof of purchase.