Depositing 500, 1000 Rupee notes to NRI bank account : Common Questions

Most NRI’s prefer to keep small amounts of Indian currency to meet their immediate expenses when they arrive in India. For the convenience of storage it is natural that these will be higher denominations like 500 and 1000 rupee notes, which unfortunately are no longer considered legal tender by Indian Government.
However there is no need to panic now, especially if the amount is reasonable and is well accounted for.
In our earlier post, we discussed what are the options for NRIs to exchange or deposit this money.

  • To simplify the options, NRIs abroad need to either carry the cash to India or send with someone else to deposit in their NRO accounts.
  • If you haven’t read it, here is the detailed article which gained over 4 lakh page views and was shared by around 30,000 readers in few days.

However, as per RBI & Customs guidelines, one person can carry only Rs 25,000 worth of cash to India. You can read more about those rules here.
In this scenario, lots of people have questions about how to deposit in the bank account back home. So here are the answers to frequently asked questions :

1. How much time do I have to exchange / deposit the notes?

The OHD (Old High Denomination) banknotes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till 30 December 2016. You can also deposit these in your bank accounts during this period.
After that date, the banknotes can only be exchanged at selected RBI offices till 31 March 2017. Many people are optimistic that the RBI might extend this deadline. However it is yet to be confirmed.
“For those who are incapable to exchange their 500 and 1000 Notes or deposit the same in their bank accounts on or before December 30, 2016, an opportunity will be given to them to do so at specified RBI offices on later dates along with required documentation as may be specified by the Reserve Bank of India,” Ministry of Finance has said in a press release.

READ  All you need to know about NRI investing in Mutual Funds

2. Can we deposit OHD notes in international branches outside India?

Deposit of INR cash in the overseas branches / representative offices of Indian banks is not permitted.

3. I am right now not in India, what should I do?

If you have OHD banknotes in India, you may authorise in writing enabling another person in India to deposit the notes into your bank account.
The person so authorised has to come to the bank branch with the OHD banknotes, the authority letter given by you and a valid identity proof (Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Passport, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff)

4. I am an NRI. In which account can I deposit the cash?

Cash can be deposited only in the NRO account. It cannot be deposited in the NRE account.
(To know the difference between NRE and NRO accounts, read this article).

5. I am an NRI/ PIO. I have only a NRE account. I do not have a NRO account. Can I deposit my cash in the NRE account?

You cannot deposit INR cash in the NRE account. You will need to make a request for opening of a NRO account in the same customer Id through the Internet banking logged in section or by calling customer care or placing a request at the branch in India.
The account will be opened soon after which you or your authorised representative may deposit the cash in the NRO account

READ  All you need to know about NRI investing in Mutual Funds

6. I am an NRI/ PIO. I had withdrawn cash from the NRE account for utilization while on my visit in India. Can I deposit the cash back into the NRE account?

No, the INR cash needs to be deposited in the NRO account

7. Will the change in the withdrawal limits at ATMs in India affect the withdrawal limit of foreign currency from an ATM at an overseas location?

No, it will not affect foreign currency withdrawals. The change in withdrawal limits is applicable only to INR withdrawals from ATMs in India.
The international debit card will continue to work at overseas ATMs for foreign currency cash withdrawal. There will be no change in the withdrawal limits in case of foreign currency withdrawal from an ATM located outside India.

8. I have a mandate holder in the NRO account. My mandate holder in India will be visiting the branch to deposit the cash? Do I require to provide another authorization request for acceptance of the cash?

No, since the representative visiting the branch is the existing mandate holder to the non-resident account no separate authorisation request is required

9. I have taken an OD facility against my NRE/ NRO/ FCNR FD. Can I deposit the Cash in the Overdraft account?

No, the cash cannot be deposited to the overdraft account. It needs to be deposited to a Non Resident Ordinary SB account

READ  All you need to know about NRI investing in Mutual Funds

10. The customer is an NRI/PIO and is overseas. He has sent an authorized representative / mandate holder to deposit cash. The account is due for Re-KYC. Can the branch accept the cash?

The branch in India can accept the cash up to a maximum limit of Rs 50,000 without Re-KYC. The representative should produce authority letter and his / her valid identity proof while tendering the notes.
Post completion of Re-KYC in the account the cash may be deposited by the authorised representative/ mandate holder without any limit. To complete Re-KYC the customer may submit documents through internet banking.

11. Do I require PAN / Form 60 of the account holder to be submitted for cash deposits in NRO accounts?

PAN / Form 60 will be required for cash deposits of value over ₹ 50,000 in the NRO account. You can update PAN in the NRO account through your internet banking or by calling our 24 x 7 customer care.

12. Can I use cash to create a NRO FD?

No, you cannot use INR cash to create an NRO FD. You will need to deposit the cash in the NRO account, post which you may place a request for NRO FD creation through phone internet banking/ phone banking/ mobile banking/ branch.

- Published on 13 November 2016 - By Aneesh V / NRICafe.com - Courtesy : ICICI Bank, RBI
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15 thoughts on “Depositing 500, 1000 Rupee notes to NRI bank account : Common Questions”

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  1. Avatar

    Hi, I have sent money to India by my friend. Can he deposit the money Rs 20,000/- into my NRO account before June 30, 2017?

  2. Avatar

    Hi, I have sent money to India by my friend. Can he deposit the money Rs 20,000/- into my NRO account before June 30, 2017?

  3. Avatar

    I am an NRI and having about Rs 10000 of old 500 and 1000 notes, i want to know the procedure and documents required to get replace at tbi counter so that i can come with the required documents at the RBI

  4. Avatar

    As an NRI, I returned to India for a family wedding in January 2017 with 15,000 rupees in 500 notes and stood in the queue to declare the notes at Delhi Airport. I noticed the guy in front of me at the counter was screaming and shouting as his 10,000 rupees were confiscated by the agent at the desk – no reason given. I decided not to declare my notes and walked out of the airport.
    I had hoped that wedding would have been postponed, but the family had already paid too much money out so the wedding went ahead. In my three weeks in India, I would have spend around 3 lakhs, but had to survive on just 70,000 rupees as I could only withdraw more than 24,000 rupees in any one week from my bank account.
    So who lost out?? INDIA lost out to me spending my hard earned money in India. Businesses are suffering as tourists cannot spend their money. I came back with most of the money I took with me and my NRI Bank accoungt is intact as I was unable to spend it . I now read that had I gone to an RBI Branch that it would have been a wasted journey and you may never get your money back anyway as I have heard that old notes are being confiscated if your paperwork is not in order.
    India is India – just feel for the poor and the needy. Shame about all of this, but funnily the rich and the well to do in India haven’t complained one bit -wonder why!!

  5. Avatar

    As an NRI, I returned to India for a family wedding in January 2017 with 15,000 rupees in 500 notes and stood in the queue to declare the notes at Delhi Airport. I noticed the guy in front of me at the counter was screaming and shouting as his 10,000 rupees were confiscated by the agent at the desk – no reason given. I decided not to declare my notes and walked out of the airport.
    I had hoped that wedding would have been postponed, but the family had already paid too much money out so the wedding went ahead. In my three weeks in India, I would have spend around 3 lakhs, but had to survive on just 70,000 rupees as I could only withdraw more than 24,000 rupees in any one week from my bank account.
    So who lost out?? INDIA lost out to me spending my hard earned money in India. Businesses are suffering as tourists cannot spend their money. I came back with most of the money I took with me and my NRI Bank accoungt is intact as I was unable to spend it . I now read that had I gone to an RBI Branch that it would have been a wasted journey and you may never get your money back anyway as I have heard that old notes are being confiscated if your paperwork is not in order.
    India is India – just feel for the poor and the needy. Shame about all of this, but funnily the rich and the well to do in India haven’t complained one bit -wonder why!!

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