India scraps 1000, 500 Rupee notes

1
2078
| Malaysia | 10 Nov  2016 | Asia Samachar |

rupee-500-2
Money changers in Malaysia, Australia and presumably in other countries as well have all but stopped transacting in Rupee following the surprise move by the Indian authorities to remove the existing 500 and 1,000 rupee notes from circulation.

The move, announced by Indian Prime Minister Narendra Modi on Tuesday night, caught everyone by surprise.

In Kuala Lumpur, checks by Asia Samachar at a number of licensed money changers show that they have stopped temporarily in dealing with rupees to get clarity on the issue. The same has taken place in Australia, according to news reports.

In his announcement, Modi said the ‘tough step’ was take to ‘rid this country of the termite-like corruption and black money’.

“With a view to curbing financing of terrorism through the proceeds of Fake Indian Currency Notes (FICN) and use of such funds for subversive activities such as espionage, smuggling of arms, drugs and other contrabands into India, and for eliminating Black Money which casts a long shadow of parallel economy on our real economy, it has been decided to cancel the legal tender character of the High Denomination bank notes of Rs.500 and Rs.1000 denominations issued by RBI till now. This will take effect from the expiry of the 8th November, 2016,” according to a statement from India’s Ministry of Finance.

In a news report in The Star today, the nation’s largest English newspaper it quoted an unnamed Indian High Commission official as saying that it was waiting for an official circular before it would be able to advise those in Malaysia on how to clear the rupee notes.

In the same report, it quoted Ikano Power Centre Halasuria Money Changer supervisor V. Alagesen as saying his ex­­change had put rupee transactions on hold. It was the same at Green World Money Master in Tropicana City Mall.

“At the moment we are not buying or selling rupees as we’re waiting for an announcement on what we should do,” it quoted Spectrum Forex Sdn Bhd manager Basir Ahmad at Sunway Pyramid Shopping Mall.

For Non Resident Indians (NRIs) who have cash on hand, one news report gave these options to change the old notes:

1. Carry the cash with you to India. According to a press release by India’s Ministry of Finance, one can exchange the old notes till December 30, 2016. Many non-residential Indians are scheduled to make their trip to India in coming months. You can carry your old notes to India and you will be able to deposit this into banks or post offices till December 30, 2016.
If you are not travelling this year, you can still change them until March 31, 2017 by furnishing ID proof.

2. Use money-exchange in your country, though there seems to be some temporary hitch here.

3. Deposit the old notes in your NRO account: Reserve Bank of India’s (RBI) website has put our FAQs which states that you can deposit your notes into Non-Resident Ordinary (NRO) Savings Account.

4. Authorise another person in India to deposit the notes: According to RBI guidelines, if you have old banknotes in India, you may authorise in writing enabling another person in India to deposit the notes into your bank account. The person so authorised has to come to the bank branch with the OHD banknotes, the authority letter given by you and a valid identity proof (Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff).

“For those who are unable to exchange their Old High Denomination Bank Notes or deposit the same in their bank accounts on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI on later dates along with necessary documentation as may be specified by the Reserve Bank of India,” according to the same MOF statement.

 

[ASIA SAMACHAR is an online newspaper for Sikhs in Southeast Asia and surrounding countries. We have a Facebook page, do give it a LIKE. Follow us on Twitter. Visit our website: www.asiasamachar.com]

RELATED STORY:

Pakistan-India tension not felt in Aussie local council voting, say candidates (Asia Samachar, 4 Oct 2016)

1 COMMENT

  1. So only option is to spend money on air ticket to exchange 500 and 1000 Rupee note or let it be become trash, and for most of the cases air ticket may be much higher then currency note person in hand.
    Ideally no option for NRI, overseas Indian students or any one else (overseas) having 500/1000 currency note to convert it.

LEAVE A REPLY