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NRI tries to convert Rs 800,000 at UAE exchange

Abu Dhabi - Currency exchange staff, used to requests to change Rs 2,000-Rs 5,000, was stunned to see a sack full of money.

Indian expatriates have made a beeline to money exchanges across the UAE ever since the government made Rs 500 and Rs 1,000 notes redundant.

Ideally, the assumption is that expats might be having up to Rs 5,000 in hand to change but staff at a few money exchanges in the UAE told Khaleej Times that they came across people with money ranging from Rs 200,000 to Rs 800,000.

"I thought it will be Rs 2,000 or so and since we were not giving exchanges, I just casually asked how much money is there. He showed a bag and said 'Rs800,000'. I was shocked. Why will anyone bring in such big amount to money exchange," a staff at a top money exchange group said.
Also read: 5 ways NRIs can convert their Rs 500, Rs 1,000 notes

Another staff at a facility said this is nothing uncommon but such big amounts are unheard before.

"You transfer lump sum amount but exchanges worth Rs 200,000 was a first request for me," a staff said.

A resident, on condition of anonymity, said that he saw on three days people with sacks of bags lurking outside a particular money exchange in the capital.
Also read: Indian banks in UAE not accepting Rs 500, Rs 1,000 notes

"People are desperate to do away with their ill-gotten wealth," he said. "The bold move by the Indian government has hit the target. This certainly has shaken the very roots of hawala money."

The big question remains as to how so many people are in possession of such large cash amounts? How did anyone manage to bring in this much amount of money in to the UAE? And will there be a similar boreholes dug to channel money back to India as they don't have an alternative in the UAE?

"Such an amount can be fake also. But menace of black money remains worrisome and such developments further weaken our system," an official source at the Indian Embassy said.

ashwani@khaleejtimes.com