The limited period for exchange of scrapped currency notes of Rs 500 and Rs 1,000 by Indian residents, who were abroad ended on Friday.

However, an additional three months is available to NRIs with a rider of exchange of Rs 25,000 per individual. The exchange period for NRIS will end on 30th June.

The Indian government scrapped the old notes of Rs 500 and Rs 100 on 8th November last year, and permitted people to deposit the scrapped currency notes in banks up to 30th December.

Minister of state for finance Arjun Ram Meghwal stated that there was no monetary limit for the exchange of currency notes for residents, who were abroad during the demonetization period; there was a cap for NRIs as per FEMA regulations.

Non-Residential-Indians, who are coming to India are required to come through the ‘Red Channel’ by disclosing the amount of scrapped notes to the Customs authorities at the airport and secure a certificate to be tendered at the RBI at the time of exchange.

The exchange facility till June is subject to the 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.

Scrapped notes can be exchanged at RBI offices in Mumbai, Delhi, Kolkata, Chennai and Nagpur.

The Indian government had declared Rs 500 and Rs 1,000 scrapped bank notes as illegal tender from 8 November, 2016. Subsequently, the President of India approved the promulgation of the Specified Bank Notes (Cessation of Liabilities Ordinance) Ordinance, 2016 on 30 December.

The ordinance imposes penal liabilities on the holders of scrapped notes after the specified date. It makes holding, transfer and receiving of the demonetized notes a criminal offense, punishable with a fine of Rs 10,000 or five times the cash held whichever is higher.

AMandeep