UAE exchange houses RUN OUT of Indian notes

Money exchange houses in the UAE are fast running out of Indian currency notes, Khaleej Times can reveal.

With the Indian government scrapping the Rs500 and Rs1,000 notes, exchange houses here have stopped buying or selling the denominations.

However, they are also running out of Rs100 and Rs50 notes, the only currency they are giving out to NRIs or travellers to India. So it's better to get the Indian currency in the legal denominations after touching down at the entry port for those who are travelling to India,.

Khaleej Times approached three money exchange offices to know whether they are exchanging Dh1,000 for Indian currency. However, all the three claimed they did not have stock of Indian currency.

When contacted, Sudhir Kumar Shetty, president of the UAE Exchange, said: "We have stopped accepting and selling Rs500 and Rs1,000 notes at the counters in the UAE from the moment the Indian government announced the ban. We are waiting for further directions from the finance ministry for the overseas market.

"We are not in a hurry as we understand it's a massive operation and the priority for the government will be local market. After the ban on the two denominations, an artificial demand for the Indian currency has been created here and we may not have stock of Rs100 and Rs50 now.

"We are happy with the government decision which was long-pending, and will have far-reaching impacts. I foresee interest rates going down, inflation coming down and banking habits of Indians moving from cash to smart payments. It will also bring a lot of money into the banking system," he said.

- ankita@khaleejtimes.com