On 8th of November 2016, Indian Prime Minister unexpectedly announced that Rs500 and Rs1000 currency notes will not remain valid after midnight of November 08, 2016. I think no body was expecting it at all and it shook the entire Indian Media. The rationale behind making this abrupt decision is to counter black money circulating in the market. Many people have been caught recently in India with millions of Indian Rupees kept at their houses made out of corruption. By banning the exchange of old currency notes, the government actually made all this money redundant for these corrupt people. The old currency notes can be exchanged for the new notes by Dec 30, 2016.[irp]
People having Rs1000 and Rs500 currency notes within Saudi Arabia are not sure what they can do with their currency notes. There are 4 options available for them.
1-If you have an NRO bank account, you can visit the branch of the said bank in Saudi Arabia, or anywhere in the world, and deposit the same in the NRO account. There has been clarity on this from the Reserve Bank of India, and Indian banks with representative offices abroad should accept this cash to be deposited in the NRO accounts.
2-If you are planning to visit India before Dec 30, 2016, you don’t have to worry about it. You can carry your currency notes from here and exchange it there. Non-Resident Indians can carry up to Rs25,000 per person to India and exchange or deposit it to their bank accounts in India. There is no limit to making a deposit to their bank accounts.
3-In case you cannot travel to India in coming six weeks, you can hand over your money to any of your friends who are going to India and he will deposit it to your bank account.
4-In case you are not able to exchange your money by Dec 30, 2016, and you travel to India after the due date, you can always visit Reserve Bank of India office and exchange it there by giving proper reasoning of delay.
People living in India would be able to exchange these currency notes by any of the following ways;
1-These currency notes can be exchanged for new currency notes on bank counters. However, the maximum limit to exchange currency notes for one person is Rs4,000.[irp]
2-It can be deposited to your bank account and in this way, you would be able to convert it to digital money. Here is the trick used by the government, a corrupt person will never deposit this money into his bank account.
3-It can be used for the payment of railway and post tickets.