Doha: No, you cannot exchange your old Indian Rs500 and Rs1,000 notes in Qatar as of now.
There is lot of confusion among Indian expatriates after the Indian Prime Minister announced the demonetization on November 8.
The sudden withdrawal of higher denomination notes of Rs500 and Rs1,000 has come as a shock to many who have carried money to Qatar for using at Indian airports and for transportation on their way back.
There are many rumours spreading through various online platforms like Whatsapp that you can exchange money through the state Bank of India and ICICI branch in Qatar. But these are not retail branches and moreover they are not authorized to exchange notes by Reserve Bank of India (RBI).
The money exchanges in and around Qatar are also not accepting old currencies. So that option is also gone.
An English newspaper in Qatar quoted a leading Bank official as saying they have approached RBI for permission to accept the olds notes as deposits.
"We have approached the RBI in the larger interest of our NRI customers in Qatar, the UAE and Kuwait. Many of them have requested for this facility," Doha Bank Group CEO R Seetharaman told Qatar Tribune.
If this works out, it will be a great help for the Indian expatriates in Qatar. You will need an NRO account with Doha Bank, if and when this starts. But RBI has not given permission to any bank or exchanges this facility outside India.
So what are the options NRIs have:
1) You can travel to India before December 30 and deposit the cash in your NRO account. You can exchange RS4,500 over the counter at banks and post offices.
Please note you cannot deposit these currencies in your NRE accounts, only in your NRO accounts where interests are taxable. To deposit amount larger than Rs50,000 you will have to furnish a pan card. So there is a good reason to open a NRO account and get a pan card if you don’t have one.
2) If you are not planning to travel to India before December 30, the only option you have is to send the money through a friend or relative to India and ask them to deposit in your NRO account. For this you will have to send an authorization letter and the person will have to carry identification proof.
If you are the person carrying the money be careful not to carry large amount as a person is allowed to carry only RS25,000 per person. And also don’t put big amounts of your friends and relatives in your account as larger amount in accounts will be scrutinized by tax authorities.
3) If your money is lying in India, you can do the same as in step 2 by sending an authorization letter to relatives at home and make them deposit the money in your NRO account.
This is what RBI has to say "If you have Specified banknotes in India, you may authorise in writing enabling another person in India to deposit the notes into your bank account. The person so authorised has to come to the bank branch with the Specified banknotes, the authority letter given by you and a valid identity proof (Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff)"
4) Initially RBI has mentioned on their website that NRI can exchange the currency even after December 30 by visiting a RBI branch and showing proof that the person was outside India, But this option was removed from the latest RBI update. So don’t bank on it.
Some useful tips:
Many NRIs only have NRE account, which is not taxable. For depositing the old currency you will need an NRO account, which is taxable.
Get a pan card – as you will need one for all future financial transactions.
Get an Aadhar card next time you visit India – It’s good to have one.
Try not to carry cash or carry bare minimum and use your debit cards wherever possible – better to get adjusted to a new future of cashless society
Try online banking – it’s really easy and secure.
