KEY POINTS
- India’s government withdraws 500-rupee and 1,000-rupee notes, with immediate effect, and without notice
- No current exchange mechanism available through Crown Currency Exchange
- Potential in-country exchange mechanisms available to Indian citizens
- In-country exchange mechanisms for foreign citizens are highly restricted
- We will provide further information if/when available
WITHDRAWAL OF LEGAL TENDER STATUS
On the evening of 8 November 2016, India’s prime minister announced that all then-current 500-rupee and 1,000-rupee banknotes would cease to be legal tender, effective from midnight that day.
This announcement was made with no warning to either the global financial services community, or the domestic Indian financial services community.
In place of the now outmoded 500 and 1,000 rupee, a new version of the 500-rupee note, and a new denomination 2,000-rupee note is being issued.
OLD NOTES
India’s government has arranged for its resident citizens to be able to exchange now outmoded 500 and 1,000 rupee notes at the Reserve Bank of India (RBI), for new notes. According to a 12 November 2016 press release by the RBI: “The scheme for exchange of the specified bank notes for other denominations is available all across the country till December 30, 2016 and even beyond, at specified RBI offices”.
And, resident citizens can deposit outmoded notes into existing ordinary bank accounts, for value, up to 30 December 2016. However, such banks cannot exchange outmoded notes in return for new notes or other denominations of currency: this is only possible through the RBI.
Insofar as foreign tourists in India are concerned, one of the FAQs on the RBI website notes that: “Foreign citizens will be permitted to exchange foreign currency up to ₹5000 per week. Necessary entry to this effect will be made in their passports”
At present, we at Crown Currency Exchange are not aware of any other exchange options
OUR CUSTOMERS
We regret the impact that this has had on some of our customers. It is unfortunately the case that, as we are not responsible for this situation, we can, at present, offer no recourse.
We will make every effort to support affected customers if/when a solution for clearance is to hand.
