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Currency notes of 1000 and 500 denomination
Currency notes of 1000 and 500 denomination

Dubai - The lack of enough new currency bills in circulation and ill-managed process have brought flak from within India and abroad.

By Suneeti Ahuja-Kohli

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Published: Fri 11 Nov 2016, 9:54 PM

Last updated: Sun 13 Nov 2016, 12:02 PM

Although the move is considered a bold step by the Narendra Modi led government to tackle black money and corruption, the lack of enough new currency bills in circulation and ill-managed process have brought flak and caused much dismay and chaos in India and abroad.

India has the largest diaspora in the world with more than 16 million people living outside the country. Yet, there wasn't any heed paid to this lot when the Indian government suddenly decided to demonitise bills of Rs500 and Rs1,000. The Indian government has not put in place any mechanism that allows non-residents Indians (NRIs) to deposit cash into their bank accounts or get high denomination bills of 500 and 1,000 exchanged outside India.
"We have received a number of calls and a lot of people have flagged the issue with us. We are working on it," Economic Affairs Secretary, Shaktikanta Das, told Khaleej Times over the phone on Thursday.  The Reserve Bank of India (RBI) too sent a similar feeble reply to our query asking for some clarity on the fate of these notes  languishing in the wallets of NRIs abroad.
The sudden and abrupt demonitisation of Rs500 and Rs1,000 currency notes by the Indian government on November 8 evening has disturbed resident Indians and also caught non-resident Indians by off guard. Soon after the news, many NRIs in different countries are learnt to have scurried to local exchange houses, which promptly refused to exchange the Indian currency. Indians are allowed to carry up to Rs25,000 outside the country in cash, and many NRIs usually keep cash handy to use it during their trips to India.
Although the move is considered a bold step by the Narendra Modi led government to tackle black money and corruption, the lack of enough new currency bills in circulation and ill-managed process have brought flak and caused much dismay and chaos in India and abroad.
"The 500 and 1,000 rupee notes hoarded by anti-national and anti-social elements will become just worthless pieces of paper," Modi had said in his televised address to the nation on Tuesday evening.
As per the latest annual report of the Reserve Bank of India, the Rs 500 and Rs 1,000 notes account for over 86 per cent of the total Rs 16.42 lakh crore value of bank notes in circulation as on March 31.
India has introduced Rs2000 note and is soon going to release a new Rs500 note too. "The RBI is going to monitor the release of the Rs2000 notes, and in due course, within a few months, the Rs1000 note will be reintroduced into the market with completely new dimensions, new design and new colour from the old one," sad Das said while speaking at the Economics Editors' Conference in New Delhi today. He was joined by India's Fianance Minister Arun Jaitley and Chief Economic Advisor Arvind Subramanian.
The Finance Minister has assured that nobody would face any questions or harassment for small deposits made in banks in India, but no word was said how non-resident Indians can deposit OHD in their bank accounts.
suneeti@khaleejtimes.com
 
 


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