UAE Indian banks NOT accepting old Rs500, Rs1,000

UAE Indian banks NOT accepting old Rs500, Rs1,000

Dubai - The rumour spreading on social media about depositing them is not factual, experts say.


Ankita Chaturvedi

Published: Sat 12 Nov 2016, 9:10 PM

Last updated: Wed 14 Dec 2016, 2:57 PM

Indian financial experts in Dubai have rebutted the rumour spreading on social media about depositing the demonetised 500 and 1,000 rupee notes in a representative office of State Bank of India in Dubai.
The Institute of Chartered Accountants of India Chairman Pankaj Mundra said the message is fake. "Any Indian bank in the Dubai International Financial Centre is not authorised to collect any cash, whether it is Indian rupees or US dollars as per the Dubai Financial Services Authority (DFSA) regulations. Only the banks having full branch licence from the UAE Central Bank is authorised to collect and exchange any currency here. Bank of Baroda is the only Indian bank in the UAE, which is authorised by the central bank to accept any cash deposit including rupees. Even in case of Bank of Baroda, NRIs can deposit Indian rupee only to their NRO accounts. However, regarding the 500 and 1,000 rupee notes, the bank hasn't received any instruction from the Indian government."
"Banks outside of India haven't received any directions to receive the scrapped notes yet," said Mundra.
The news of scrapping 500 and 1,000 rupee notes has created a chaos amongst the NRIs worldwide and Indian expats in the UAE are also confused. They are curious to know if there is a way out to exchange the money they have here.
RC Nayak, an Indian accounts professional based in Dubai, told Khaleej Times that he had just returned from a vacation and was shocked to learn about it as he had kept some Indian rupees with him so that whenever he travels to India, it could be used for emergency.  "I would prefer if Indian government can allow exchange of money here in the UAE as it would be difficult for me to go to India soon. But, if nothing will happen then I have no choice but to travel."
Like him, Ajay Reddy, another UAE resident, has no plans to visit India soon and can't even send money through someone else. Even the option of depositing money in the NRO account doesn't work for him. He is helpless and is seeking a solution for the NRIs like him.
Manjula M.S. came from Bangalore to Sharjah on Thursday with Rs50,000 (in Rs1,000 notes). "I thought I would exchange it for UAE Dirhams at the airport."  But, at the airports in Bangalore as well as in Dubai, the exchange houses refused to accept the scrapped notes. "I came here on a three-month visit visa to find a job and my trip was planned in advance. The government decision to scrap the notes was announced on November 8 in the night and the next day, banks were closed. So I could not exchange the money there also. Now, I have no idea what to do with this cash here and I can't depend on friends for long time for food and accommodation," she said.

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