Here are my recent responses to questions about NRIs on Quora. Do keep the questions coming. I will try and respond on this blog or Quora
The purchasing power of NRIs -essentially the “rich uncle” syndrome is part of the reason for the obsession.
But that alone doesn't explain the full story. Different groups in the society are obsessed for different reasons:
But that alone doesn't explain the full story. Different groups in the society are obsessed for different reasons:
- Relatives of NRIs: Obsessed with the rich uncle/aunt/cousin whom they can lean on for foreign goodies and some $$s
- Real-estate agents, builders and brokers: Opportunity to “sell” a slice of Indian dream to this affluent market segment
- Students and youngsters: Look to NRIs as global role model: “If my cousin could go to US to study and get a nice job at Google/Microsoft, so can I!”
- Rest of the digirati and Junta: Always looking for interesting stories. NRI did well in ….. America, England, elsewhere is and interesting story.
- Media and Journalists: Always looking for a juicy story to sell to the above groups. NRIs stories sell!
The question is too open ended. Your options would depend on :
- NRI status and intent: Are you a transient NRI (e.g working for a service company with an Indian passport) or hold a foreign passport (and only occasionally travel to India)
- Amount of money we are talking about.
- If it is a few hundred rupees, why not just donate it to charity?
- If it is a larger amount - hundreds of thousands - you need to think if you want to “invest” it or repatriate it back “home” in Dollars, Euros or Pounds
- Bank accounts in India: Many long-term NRIs who just visit India occasionally may not have bank accounts or the means to manage their investments in India. For them, holding Indian currency is meaningless
- Other factors: your investment preference, inclination to donate to charity etc etc.
- More recent factor: Is the money in OLD 500s and 1000s. If so, is the Amount in India or with you overseas? Check out: Indian Government's decision to do away with 500, 1000 RUPEE NOTES! Impact on NRIs )
Think about it a do good!
Question: What should the Indians abroad in possession of ₹500 and ₹1000 notes do if they are not returning till 31 Mar 2017?
First things first. What will NOT work
- Panicking about this is not going to help. Unless you have stashed away hundreds of thousands of rupees in 500 and 1000 rupee notes in your bedroom or bank locker overseas, there is no reason to panic.
- If you had a lot - hundreds of thousands - of currency notes with you while traveling overseas, ask yourself:Has the money had already been taxed in India? If yes, just hold on to the currency till your next trip back to India and follow RBI guidelines ( check out Indian Governemtn statement )On the other hand, If the money had not been taxed, or it was a "cash payment" you received, ask yourself if you should just count your losses and walk http://away.As per RBI regulations, Foreigners and Indians are not legally "allowed to carry any Indian notes with them." Although the rule, which is part of Foreign Exchange Management Act (FEMA), has been in place for quite sometime now, it is only now that the central bank is trying to enforce it.If you walk into an Indian Embassy or Consulate overseas with a suitcase full of 500 or 1000 rupee notes, you could be in trouble!
- Branches of "Indian" banks like State Bank of India, ICICI and other banks in the US and Canada operate as local banks. They are not authorized to operate your "Indian" NRI or NRO accounts. Therefore, they will not take your 500 or 1000 rupee notes for deposit.
- Currency exchange ( money-exchange ) outlets in foreign countries may NOT accept the old 500 or 1000 rupee notes. There are already accounts in media that commercial money exchange outlets overseas have reportedly refused to accept the old 500 and 1000 notes.
Here are a few facts and practical tips for NRIs, left with "some" Indian currency in hand:
- Carry the cash with you to India: According to a press release by India's Ministry of Finance, individuals can exchange the old notes till December 30, 2016.
- If you have some money left back in India, you could authorize another person in India to deposit the notes: According to RBI guidelines, if you have old banknotes in India, others may be authorized to deposit the notes into your Non-Resident Ordinary (NRO) or Non-Resident External (NRE) bank account. The authorized person should go to the bank branch with the old banknotes and authorization letter from you. He or she should also carry a valid Indian identity proof
- Send the rupees back to India with someone you trust. If the person is traveling before end of 2016, he or she can deposit it into your account (similar to step 2)
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