Note exchange: Grace period only for those who were abroad from Nov 10-Dec 30, says RBI

When Prime Minister Narendra Modi announced that higher currency denomination will be scrapped in a few hours and gave 50 days(10 Nov-30 Dec) period to the citizens, he also had said that there may be
RBI shut doors for depositors who were in India... Source: PTI
India TV Business Desk New Delhi January 03, 2017 7:01 IST

When Prime Minister Narendra Modi announced that higher currency denomination will be scrapped in a few hours and gave 50 days(10 Nov-30 Dec) period to the citizens, he also had said that there may be some who were unable to deposit their old 500 or 1,000 rupee notes by December 30, 2016," 

"They can go to specified offices of the Reserve Bank of India up to March 31, 2017 and deposit the notes after submitting a declaration form," the Prime Minister had said on television.

However, as it turns out, RBI is shutting its door for depositors who turned up at central bank's offices to deposit the scrapped currency after Dec-30 and they were told that only people who were abroad during 10 Nov-30 Dec period can exchange their old money.

According to Times of India, several depositors were turned away, when RBI's offices in Kolkata, Ahmedabad and other parts of the country who came to exchange some notes that were left behind, they were told there was no grace period.

The ordinance issued by the government clearly mentioned that only those who were outside the country during the 50-day period could deposit their old notes, but after stating the reason for their absence, a finance ministry official told TOI. 

 

The Specified Bank Notes (Cessation of Liabilities) Ordinance did have a provision for allowing deposits but it specified that the grace period was only for those who were overseas at the time of demonetisation.

This is in sharp contrast to the RBI press release issued on November 8, which stated that "any person who is unable to exchange or deposit the specified banknotes in their bank accounts on or before December 30, 2016 shall be given an opportunity to do so at specified offices of RBI or such other facility until a later date as may be specified by the RBI".

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