4 Ways Non Residential Indians (NRIs) Can Change Their Rs. 500 And Rs.1000 Notes

Indian Prime Minister Narendra Modi in a surprise move on 8th of November 2016, night introduced excessive-denomination notes of 500 and 1000 rupees which will no longer be legal tender from the midnight local time.

Brothers and sisters, to rid this country of the termite-like the corruption and black money, it has become crucial to take one more tough step. Started at  midnight of 8^th  November, 2016, the current currency notes of denominations of Rs 500 and Rs. 1,000, will no longer remain legal tender. These currencies will become legally invalid soon.

The main aim at opposing the scourge of the black money, corruption and fake currencies that supposedly fund terrorism forced people in India to rush to the petrol pumps and the ATMs, as the news spread.

This new development has also raised many questions among those people who are living abroad. Many people in Australia woke up to this news and have been seeking for answers as to how should they get their old 500 and 1000 rupee notes converted.

For the NRIs who are having cash in hand, there are some options available to change the old notes:

1. Carry the cash with you to India:

According to a press release by India's Ministry of Finance, you can only exchange the old notes upto 30^th of December, 2016.

Many non-residential Indians are expected to make their trip to India in the coming months. You can carry your old notes to India and you will be able to deposit this into the banks or post offices until 30^th of December, 2016.

If you are not going to travel this year then you can still exchange them until the 31^st of March, 2017 by furnishing your ID proof.

2. Use money-exchange in your country:

You can exchange your cash, the old Indian currency notes at an authorized money exchange in your city which can be financial private money exchange outlets and your local banks, change your money into dollars, pounds, or any other local currency and then change it back to rupees when you are visiting India. You may lose a bit on transformation rate but this is an opportunity, if you are not travelling to India before the 31^st of March, 2017.

UPDATE at 8pm AEDT, 9th Nov 2016: Certain financial money exchange outlets have even reported that they have refused to accept the old 500 and 1000 notes. Kindly check your money-exchange options at your local bank. 

UPDATE at 12pm AEDT, 10th Nov 2016: Majority of the financial money exchange outlets have either stopped or adjourned accepting the old 500 and 1000 rupee Indian notes. 

3. Deposit the old notes in your NRO account:

The Reserve Bank of India’s (RBI) website has put our FAQs which state that you can only deposit your notes into the Non-Resident Ordinary (NRO) Savings Account.

4. Authorise another person in India to deposit the notes:

According to the RBI guidelines, if you have old bank notes in India, you can authorise in writing the sanctioning 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. The 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 the Government Department, Public Sector Unit to its Staff.

WHAT IF NONE OF THESE OPTIONS ARE SUITABLE TO ME?

If none of the above options are suitable to you then there can still be an opportunity made available by the states India's Ministry of Finance. In a press release, it is said that for those who are unable to exchange their old High Denomination Bank Notes or deposit the same in their bank accounts on or before the 30^th of December, 2016, an opportunity will be given to them at any specific offices of the RBI on later dates along with the crucial documentation as may be specified by the Reserve Bank of India. 

Tax Assist is a professional income tax consultancy in India for both corporate houses and individual tax payers; the latter comprising Salaried Individuals, Seafarers, Professionals and Non Resident Indians.

With the help of Tax Assist and its team of income tax professionals, taxpayers can minimize their Income Tax liability, maximize their net income and create opportunities to save for current and future needs while maintaining proper accounting standards and income tax returns which are compliant with the Law.