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The Indian Embassy in Abu Dhabi has advised travellers to India to carry debit and credit cards with them, and rely less on cash, following the demonitisation move by the Indian government when all Rs 500 and Rs 1,000 currency notes were declared defunct.
"Government of India on November 8, 2016, announced the cancellation of legal character of old series Indian bank notes of Rs500 and Rs1,000 denomination. In view of this Embassy of India, Abu Dhabi, advises all travelers to India to carry with them valid and sufficiently funded International credit/debit cards," the embassy statement said.
Also read: 5 ways NRIs can convert Rs 500, Rs 1,000 notes
Earlier this month, the UAE Embassy in New Delhi called on Emirati citizens visiting or residing in India to ensure that a receipt was given when exchanging currency, following the Indian government's decision to withdraw the old Rs 500 and Rs 1,000 notes.
According to a statement released by the Indian Ministry of Finance, this step was taken to curb financing of terrorism through the proceeds of fake notes and use of such funds for subversive activities such as smuggling of espionage arms, drugs and other contrabands into India and for eliminating black money from the system. High denomination notes are known to facilitate generation of black money.
Also read: Indian expats in UAE support demonitisation
The total number of bank notes in circulation rose by 40 per cent between 2011 and 2016. The increase in the number of notes of Rs 500 denomination and Rs 1,000 denomination rose by 76 per cent and 109 per cent, respectively, during this period.
The new series bank notes of Rs 500 and Rs 2000 were introduced for circulation from November 10, 2016.
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