Indian expats in a currency fix after Modi’s cash ban

Manama : A large number of Indian expatriates in the Kingdom  have welcomed Indian Prime Minister Narendra Modi’s  announcement to withdraw  500 and 1000 rupee notes from circulation. But  the new development has also raised many questions among the Indian people here. 

Many residents here including Bahraini nationals, were seen approaching the exchange houses yesterday to get the old notes converted into new currencies.   Unfortunately  the exchange houses in the Kingdom didn’t buy or sell the denominations .

Earlier, the Reserve Bank of India had stated that foreign tourists could  purchase foreign exchange equivalent to INR5000 using these Old High Denomination(OHD) notes at the airport exchange counters within 72 hours after the notification. 

Neither the State Bank of India (SBI) Bahrain branch nor the Indian Embassy responded to a DT News query regarding the  withdrawal of legal tender character of the OHD Indian bank notes.

“Modern Exchange Bahrain are unable to exchange these currency notes from Indian customers, as no instructions have been provided by Government of India to liquidate these currencies,” said Modern Exchange Company General Manager Rajesh Mathratan P.

“As Non Resident Indians (NRI) we all carry and keep a reasonable amount of currency notes with us so that one does not have to rush to an ATM or a bank to meet the immediate needs when we land in India. Similarly while returning we do have a few INR currencies with us. The Customs too permits an NRI to have INR10,000 (BD57 approx) in currency notes,” he said.

“NRIs are stuck with these old currency notes and have no way to change the denominations through any of the agencies identified by the Government of India. The Indian embassy here in Bahrain should take up this matter with the Government of India and come up with a solution for NRIs,” he said. 

According to Bahrain-based Chartered Accountant Maheshkumar  Narayan, Prime Minister Narendra Modi made the boldest and most unexpected surgical strike with the decision. 

“The announcement was timed to perfection as the stock markets were closed and beyond the normal working hours of banks and businesses.  I commend the manner in which the whole matter was closely guarded with only a handful and trusted team,” he said.