In a decision that would bring some relief to NRIs holding demonetized notes, the Finance Ministry on Friday said that non-resident Indians (NRIs) can exchange and deposit scrapped Rs 500 and Rs 1,000 notes at specified RBI offices till 30 June 2017.
This comes after President Pranab Mukherjee cleared an ordinance criminalising possession of demonetised notes worth over Rs 10,000. Under the ordinance, holding, transferring, and receiving old notes is illegal and a punishable offence.
30 June deadline only for NRIs
The Rs 25,000 limit will also apply to resident Indians who were abroad between 8 November and 30 December, but they will have to turn in the old notes by 31 March at designated offices of the Reserve Bank of India (RBI).
“For those citizens of India who are not residing in India, this facility (to deposit notes in RBI) would be available till June 30, 2017 in order to allow them adequate time to plan a visit as per their convenience,” the release said.
Maximum limit of Rs 25,000
The rules pertaining to non-resident Indians bringing in cash into the country would be as per Foreign Exchange Management (Export and Import of Currency) Regulations, 2015.
As per these regulations, bringing back such currency into the country is restricted to Rs 25,000 per person.
Old notes have to be declared at airports
While coming back to India, the number and denominations of the Specified Bank Notes (SBNs) would have to be declared to the customs authorities at the airports and other entry points.
The details of the declaration and statements that are required to be submitted along with the SBNs at the time of deposit in RBI issue offices will be later announced by RBI.
The finance ministry said once the deposit period gets over, the liabilities of RBI and the guarantee of the central government towards SBNs will stand extinguished.
After this period, holding, transferring and receiving such notes will attract a fine of Rs10,000 or five times the value of the notes, whichever is higher.
President Pranab Mukherjee on Friday promulgated the Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 to extinguish the liability of the Centre and the apex bank on demonetised notes.
The ordinance would become a law once passed by both the houses of the Parliament.