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Mon 5 Dec 2016 08:56 AM

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India sets up panel to resolve expats' issues on scrapped currency notes

Bank of Baroda official says "some reasonable solution" expected to be reached soon

India sets up panel to resolve expats' issues on scrapped currency notes

The Indian government is working to find a solution to resolve issues around non-resident Indians (NRIs) holding demonetised currency outside India, a senior banker told Arabian Business.

Indian Prime Minister Narendra Modi announced the discontinuation of Rs500 ($7.28) and Rs1,000 ($14.57) currency notes in an address to the nation on November 8.

Currently, NRIs can send the money back to India or authorise someone back home in writing to deposit the scrapped currency notes into their non-resident ordinary (NRO) bank accounts. Those with large sums of money must disclose the source of the money to tax authorities or face penalties, the banker said.

“[Though] nothing official has come from the government, they are working on finding some reasonable solution for NRIs holding rupees outside India as permitted by the Reserve Bank of India,” Vineet K Dudeja, CEO (GCC Operations) at Bank of Baroda, said.

“If the government allows us to accept [old currency notes] then certainly we will accept them… we will be happy to do that,” he added.

The bank on Sunday signed a home finance agreement with Danube Properties for its Dreamz project in Al Furjan.

Arabian Business reported last week that exchange houses in the UAE were still awaiting notification from India's government on how to deal with the issue of scrapped notes.

It has also been reported that Indian consulates in Gulf countries have requested the government to issue an advisory for NRIs regarding demonetisation. The government has already ruled out plans to extend the December 30 deadline for depositing old notes.

On Sunday, India’s central bank announced that it would be issuing new Rs50 ($0.73) and Rs20 ($0.29) currency notes. The old notes will not be demonetised and continue to remain legal tender.

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