{"id":158,"date":"2016-11-09T23:07:32","date_gmt":"2016-11-09T23:07:32","guid":{"rendered":"https:\/\/comparism.com\/?p=158"},"modified":"2022-01-21T02:09:03","modified_gmt":"2022-01-21T02:09:03","slug":"nri-guide-500-1000-rupee-notes","status":"publish","type":"post","link":"https:\/\/www.comparism.com\/nri-guide-500-1000-rupee-notes\/","title":{"rendered":"What to do With 500 and 1000 Rupee Notes \u2013 Complete Guide For NRIs"},"content":{"rendered":"

If you are an NRI and have cash in India rupees you carried with you when you travelled overseas, there’s some news for you!<\/p>\n\n\n\n

All \u20b9500 and \u20b91000 in circulation have been banned by the Indian government.<\/p>\n\n\n\n

Yes, that’s exactly what happened.<\/p>\n\n\n\n

The Indian Prime Minister, Narendra Modi, in a sudden address to the nation on 08 Nov 2016 banned all the Rs 500 and Rs 1000 currency notes in circulation.<\/p>\n\n\n\n

That\u2019s 2203 crore banknotes<\/b>!<\/p>\n\n\n\n

In this post, I look at various steps you – as an NRI – can take to money by converting the old 500 and 1000 rupee notes.<\/p>\n\n\n\n\t\t\t

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\"How<\/figure><\/div>\n\t\t\n\n\n

Discarding higher denomination notes is an attempt to tackle the menace of \u2018black money\u2019 to restrain corruption and terrorism in India which thrives on fake currency and higher denomination notes.<\/p>\n\n\n\n

I have my own doubts about how effective it will be, given the money that needs to be spent on printing and circulating new currency to replace the old 500\/1000 rupee notes.<\/p>\n\n\n\n

But that’s not the topic of this post. Back to the original topic!<\/p>\n\n\n\n

The demonetization of OHD (Old High Denomination) notes of 500 and 1,000 rupees applies with immediate effect.<\/p>\n\n\n\n

You would already know of this unless you have been hiding in a cave or didn\u2019t have numerous calls from India informing you of this change to 500 and 1000 rupee notes.<\/p>\n\n\n\n

The government with RBI have set deadlines \u2013 after this, such notes will become “mere paper”.<\/p>\n\n\n\n

If you are a non-resident Indian like me, living in the UK (or anywhere for that matter!), you would have a few thousand rupees in the higher denomination for your travel to India from the UK<\/strong>.<\/p>\n\n\n\n

Who wants to land in India, carry the luggage and queue up for withdrawing cash at an ATM?<\/p>\n\n\n\n

That\u2019s not the first thing you want to do when in India \u2013 you just want to meet your loved one who has come to receive you or catch your next connection to your home.<\/p>\n\n\n\n

So, as an NRI having some extra cash in Indian currency with you overseas makes complete sense.<\/p>\n\n\n\n

What now?<\/p>\n\n\n\n

With this announcement, starting midnight 08 Nov 2016 both these currency denominations are longer legal tender. What this means is, 500 and 1000 rupee notes will no longer be accepted as a valid currency.<\/p>\n\n\n\n

What it also means is after the deadlines the government and RBI have set, the old 500 and 1000 rupee notes that you have will be illegal and no better than ‘useless paper.’<\/p>\n\n\n\n

There are a few exceptions, though.<\/p>\n\n\n\n

Government hospitals, petrol pumps, railway, govt. bus ticket booking counters, airlines, chemists, stores run by Central or State govt., authorised milk booths, crematoriums\/burial grounds and a few other important places will continue to accept the old denomination notes till 11 Nov.<\/p>\n\n\n\n

This is a MASSIVE<\/strong> change.<\/p>\n\n\n\n

86.4% of banknotes in value (totalling around 14.18 lakh crore) consists of Rs500 and Rs1000 notes. In terms of volume, there are 2,203 crores 500 and 1000 rupee banknotes in circulation as per RBI\u2019s latest annual report<\/a>.<\/p>\n\n\n\n

Are banks ready for this huge change? Check this article<\/a> by IndianExpress.<\/p>\n\n\n\n

Does this mean the 500 and 1000 rupee notes have become worthless overnight?<\/p>\n\n\n\n

Not really. Read on.<\/p>\n\n\n\n

There are a few guidelines you can follow to reclaim their worth<\/strong>.<\/p>\n\n\n\n

In this article, I will show you a few ways you could save from losing money.<\/p>\n\n\n\n

Before we jump on to the tips for converting your 500\/1000-rupee notes, let\u2019s look at the deadlines set by RBI.<\/p>\n\n\n\n