As demonetisation ends, who can exchange scrapped currency now

NEWDELHI: The queues at the designated RBI offices are getting longer as the deadline for exchange of scrapped notes draws to a close on March 31.

The anxiety is palpable as holding of more than 10 notes of banned currency will become a crime for Indian residents after March 31. But everyone waiting for their turn outside the central bank’s offices is not eligible to exchange their old notes.

The Reserve Bank of India (RBI) has allowed Indian citizens who were abroad from November-December 2016 to exchange the scrapped notes up to March 31 while Non Resident Indians (NRIs) have time till June 30.

But in both cases, only the deposits of old notes is allowed. This facility is available at RBI offices in Mumbai, Delhi, Kolkata, Chennai and Nagpur only.

While there is no limit for exchange for eligible resident Indians, the limit for NRIs will be as per the relevant FEMA Regulations. NRIs need customs authorities at airports to certify the amount of the demonetised notes and this certificate is a prerequisite at the RBI office. If turned down by the RBI, one can make a representation to the Central Board of the bank within 14 days. There are several people who have not been able to deposit or exchange scrapped notes or have discovered them after the end of the period on December 30, and are now making a last-ditch effort to exchange the old notes.

A case in point is that of the two orphaned siblings who discovered ₹96,000 in demonetised currency at their home in Sahrawada village in Rajasthan. The siblings sought Prime Minister Narendra Modi’s help after discovering the banned notes and sent a letter to his office.

In a written reply in Rajya Sabha, minister of state for finance, Arjun Ram Meghwal, had said that ineligible persons queuing up at RBI offices were responsible for longer queues.