Money & Banking
RBI begins crediting money to NRIs who deposited old notes
The Reserve bank of India (RBI) has initiated the payment process to credit value of the banned notes deposited by non-residents Indians (holding Indian passport) under the demonetisation drive, says an official from the central bank. 
 
In an email response, the official from RBI stated, "The current window is for exchange of specified bank notes (old Rs500 and Rs1,000 notes) by NRIs (people having Indian passports) and residents who were away during 9th November to 30 December 2016. The process involves verification of their know-your-customer (KYC) status, and their not availing the exchange services during the normal window. This process takes several weeks. As such the payments have commenced now. While we regret the delay, the time taken was needed to complete the verification process."
 
RBI has granted a grace period for NRIs and Indian citizens who were abroad during the demonetisation drive to deposit banned notes of Rs500 and Rs1,000. For resident citizens, who were abroad during the demonetisation period, the facility to exchange banned notes is available till 31 March 2017. For NRIs, the same facility is available till 30 June 2017. While there is no monetary limit for exchange for the eligible resident Indians, the limit for NRIs is as per the relevant regulations under the Foreign Exchange Management Act, 1999 (FEMA).  
 
As per the Reserve Bank, after expiry of the grace period, holding of not more than 10 notes in total, irrespective of denomination or not more than 25 notes for the purpose of study, research or numismatics is permitted. In terms of Section 7, contravention of Section 5 shall be punishable with fine, which may extend up to Rs10,000 or five times the face value of the banned notes involved in the contravention, whichever is higher.
 
RBI has set up counters at its five offices, Mumbai, New Delhi, Chennai, Kolkata and Nagpur to allow NRIs and Indian citizens to avail the exchange facility during the grace period. This facility is not available outside India. 
 
 
Any person aggrieved by the refusal of the RBI to credit the value of notes as mentioned above may file a complaint to the Central Board of the Reserve Bank within 14 days of the communication of such refusal to her.
 

 

User

COMMENTS

Arti Samkaria

9 hours ago

Deposited money at RBI Delhi on 20th Jan. Haven't received anything so far. Still waiting!

REPLY

Gupta

In Reply to Arti Samkaria 6 hours ago

Congratulations! The fact that you could manage the queue and deposit the cash itself is an achievement!!
By the way, RBI asks for copies of all bank statements with the deposit. Does anyone know if print out of e-statement is ok or old fashioned bank stamped document is required?

Satz

5 days ago

Guys, just let me know if anyone has got their money credited to their account? I'm not hearing from anyone that, they have received their money. Will they give us our money or no? lol

Saurabh Jhunjhunwala

1 week ago

I had deposited the money at RBI, on 14th Feb, and am still waiting for the same to be credited to my account.

REPLY

Satz

In Reply to Saurabh Jhunjhunwala 5 days ago

I have deposited my money like 1st week of Jan but not credited yet and i don;t think anyone has got yet.

Ramesh Kalra

In Reply to Saurabh Jhunjhunwala 1 week ago

I just want to know if there is any person who has got money in his bank after depositing old notes in RBI? how long we need to wait?

Nancy Goveas

1 week ago

I hv not yet recvd my deposited money . waiting eagerly.

Nancy Goveas

1 week ago

I hv not recvd my deposited money . waiting eagerly.

Mayur Vora

3 weeks ago

All these years, we Indians , having Indian roots were call "NRIs". We never read the fine print which says only Indian citizens living abroad are called NRIs. The for past 100 years what the F... are we PIOs/OCIs classifiend as? The some people blasted us on chat line that it is illegal for us to take rupees out of India. But RBI giving NRIs a chance to bring back the rupees from overseas via Red Channel. We contribute a lot to India economy-tourisn, investments, etc & after Modiji came in - Billions of overseas funds flowed into India & now we are treated as if we are doing Black Money business.
I was in India in Jan 2017 - the Red Channel customs officer refused to give me a slip of acknowledgement as was required when bringing in Old Notes. But outside RBI, Black market business going on - but that Bast..., wanted to keep 70% & give me 30% of new notes. Who is into this business- I dare say the RBI staff who can amend the forms for NRIs and do the juglery. I do not trut Indian policies and am happy to note that recently a lot of investments have come out of India. So far only coins invested even after Modijis Global Yatra. FEMA rules and application of OCI states clearly that OCIs status is at par with NRI but RBI has put their own rules. Pls ask RBI to reply to all my emails, and I want my money changed- it is small (Rs41,000) but it is significant as the policies & attitude has to change else India will never change.

Gupta

3 weeks ago

I'm a NRI and visited India for 2 days recently and visited RBI Delhi to deposit some cash. I reached at 11 am and wasn't even able to get inside the main gate of the office till 2.30 when they closed. At the pace they were operating, i wouldn't have gotten inside until 4 pm also if there was no time limit. I have no idea how many hours it takes after you get in. But the speed clearly suggested that RBI is thinly staffed for handling such a large nationwide activity in just 5 offices. Most likely there were touts running the show inside or there were no more than 2-3 people working on this, else the line couldn't be so slow moving. I simply dont understand why all banks couldn't be made responsible for these collections too. Does RBI consider banks less competent to verify passports and customs certificates and PAN cards than their own staff? If so, we have a much larger KYC/AML problem in the country. While loss of 20000 rupees is something most NRIs would be able to take, it was a pity to see people coming in from UP, Haryana, Punjab, Rajasthan, etc all the way to Delhi and going back dissatisfied because either they couldn't beat the queue or they didn't have the documents, mostly the customs certificate. The govt made no effort to communicate that customs certificate to be obtained at red channel is mandatory for NRIs after landing to be eligible to deposit cash. U can't expect 10 million NRIs - blue and white collared- to have read all the fine print on a hidden link on RBI website. Why can't a big board be kept in baggage/customs area stating this? Why can't this be announced in all incoming flights? On the other hand, the govt has put up boards at every 10 steps while departing stating that these notes cannot be carried out of india and its iillegal. But interestingly, that is also absent near the check in counters. You see these boards only after immigration. How do you expect someone to call back his family to return the cash when he has already reaches immigration area? First custom certificate is not informed, so you are not able to deposit despite standing in queue for hours. Then you arent allowed to take it back with you nor are you left with the ability to return it to your family in india. Horrendous execution or a clear intent to force law abiding citizens to throw their money in the bin? I broadly support this move of demonetization but i just can't digest why the execution has been so horrible

REPLY

Himankar Choudhury

In Reply to Gupta 3 weeks ago

Yeah I am in the same situation. Just came to India couple of days back and found that old notes can be deposited only in 5 RBI location. This is real bullshit by Gov . They don't care at all for the people from other states.

Himankar Choudhury

In Reply to Gupta 3 weeks ago

Yeah I am in the same situation. Just came to India couple of days back and found that old notes can be deposited only in 5 RBI location. This is real bullshit by Gov . They don't care at all for the people from other states.

This is how the great LeEco India story went bust
After arriving in India in January last year, Chinese internet and technology conglomerate LeEco fast became the "true disrupter" in the evolving Indian smartphone market with its huge marketing spend -- and the announcement of a state-of-the-art assembling/manufacturing unit.
 
News that the company has fired 85% of its India staff across the sales, marketing and distribution departments -- and confirmed by a company source to IANS on Friday -- has effectively punctured a mammoth dream just within a year. 
 
The source also confirmed to IANS that both Atul Jain, Chief Operating Officer, Smart Electronics Business, and Debashish Ghosh, Chief Operating Officer for Internet Applications, Services and Content, were "asked to leave" and had not quit as reported.
 
Speculation is also rife that LeEco may finally exit the country after spending millions on promoting its ecosystem of "superphones" and "super TVs".
 
"LeEco is in serious financial trouble and has, as a consequence, practically ceased India operations. The staff layoffs are a direct consequence of this. Even in the previous quarter, their shipments were close to zero," Jaideep Mehta, Managing Director, IDC South Asia, told IANS.
 
After its entry into India, the company launched five superphones, a LeEco membership of content and internet services, its e-commerce platform LeMall and, most recently, "SuperTVs".
 
"LeEco, as the name suggests, was built on the premise of an ecosystem. The device would open a user to an ecosystem and it was not just a smartphone. However, for a country like India, and even for many countries globally, this ecosystem isn't ready yet. Paid content consumption hasn't become big enough for a company to survive while earning nothing on the device itself," Faisal Kawoosa, Principal Analyst, Telecoms, CyberMedia Research (CMR), told IANS. 
 
On the contrary, if you see other handset brands, to an extent they too make money from content, but as value-added earnings -- which is just a fraction of the actual earnings out of the device. For them, it is akin to average revenue per user (ARPU) of a telecom operator where the operator wants to earn more per user by offering additional services.
 
"LeEco came in to disrupt this business model and make the secondary streams of earnings as their primary. For that to happen, the ecosystem hasn't arrived yet. So their positioning as well as proposition went wrong. It dismayed a user to see nothing extraordinary in terms of Device+ strategy," Kawoosa added.
 
In August, LeEco announced a $7 million manufacturing unit in Greater Noida in the presence of IT and Electronics Minister Ravi Shankar Prasad.
 
"As the market size for electronics is expected to grow to $400 billion by 2020, it is imperative to promote indigenous manufacturing. LeEco is a name of global reputation and it is heartening to see it align with 'Make in India' after entering India just eight months earlier," Prasad had told the gathering.
 
LeEco planned to ramp up the production to approximately 200,000 "superphones" per month by the end of 2016, before a severe financial crunch caught up with the company. 
 
"I think there was a disconnect with their go-to-market strategy. Being an online player they spending was almost like a player with an offline distribution strategy. Although their products were good, it was the overall marketing strategy that led to quick cash-burn," Tarun Pathak, Senior Analyst, Mobile Devices and Ecosystems at New Delhi-based Counterpoint Research, told IANS.
 
According to Kawoosa, for few years, LeEco should have positioned itself as a brand offering better specs of hardware at affordable prices. 
 
"Eventually, as the ecosystem would have matured, they could have played the LeEco card," Kawoosa told IANS. 
 
For assembling/manufacturing in India, LeEco had partnered with the US-based company M2i which will continue to manufacture for others if, by any chance, LeEco doesn't continue to manufacture in India. 
 
"I would say, these experiments will go on and we may see brands coming in and out for manufacturing in India. For 'Make in India', I wouldn't consider this as a blow yet," Pathak noted. 
 
Given the LeEco experience, other smartphone players need to look at their scale of operations and play to their strengths. 
 
"Since India is a such a diverse market, one strategy doesn't lead to guaranteed success throughout the country. With the smartphone segment being so competitive, and amidst razor-thin margins, brands need to watch their campaigns and invest wisely," added Kawoosa.
 
"It is simply a case of an over-ambitious company going under," Mehta noted.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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COMMENTS

Rahul Mishra

3 weeks ago

Superb article
Indian phone and internet market is still getting a feel of new technology. The penetration is low as far as latest technology adoption is concerned.

Bitcoin: Can RBI ignore the elephant in the room?
Virtual currencies like Bitcoin are all the rage in FinTech, and could potentially transform global commerce in the years ahead. Users are adopting them in the thousands each day and the value of trade in these currencies is witnessing unparalleled growth.
 
The world over, regulators are working out carefully-crafted regulations to foster Bitcoin growth. In India, however, even with the new cashless push by the government and existing Bitcoin trade spiking post-demonetisation, the Reserve Bank of India (RBI) continues to shy away from recognising and regulating virtual currencies.
 
On February 1, the RBI issued a yet another cautionary press release, on the back of an earlier one issued in December 2013, warning users of a risk they are likely to already be aware of -- that it (the RBI) does not regulate and has not licensed any virtual currencies in India, and anyone using them does so at their own risk.
 
A month later, on March 1, RBI Deputy Governor R. Gandhi raised concerns over virtual currencies, saying they pose potential financial, legal, customer protection and security-related risks.
 
While the central bank seems to be insulating itself from the repercussions of these currencies remaining unregulated, their use continues to grow exponentially across the world, including in India.
 
As of an August 2016 (pre-demonetisation) estimate, the number of Bitcoin (the most prominent of several virtual currencies) users in India stood at 50,000 and growing. India now also has a large number of prominent Bitcoin exchanges such as BTCXIndia, Coinsecure, Unocoin and Zebpay. Globally, by some estimates, Bitcoin users alone could breach five million by 2019.
 
The latest red flag from the RBI may well have been prompted by the recent surge in the price of Bitcoin on Indian Bitcoin exchanges post-demonetisation. Bitcoin is freely tradable currency, and has its own exchanges (including in India) where users can sign up and speculate, buy and sell Bitcoins for other currencies (such as the rupee).
 
After the cash ban, Bitcoin was quoted to be inflated 20-25 per cent over cost. As of March 2, Bitcoin was trading at Rs 90,000 to a single Bitcoin. In October 2016, this value was Rs 40,000 to a Bitcoin.
 
The question that arises then is how long can the RBI afford to adopt a hands-off approach to virtual currencies, when regulators elsewhere are adopting proactive measures?
 
The RBI's research wing, the Institute for Development & Research in Banking Technology, issued a white paper on the applications for blockchain technology in the banking and financial sectors in India in January 2017, which acknowledges the prominence of virtual currencies, but steers towards the underlying distributed ledger (blockchain) technology, rather than virtual currency regulation.
 
A large number of countries, not just in the West but in India's own neighbourhood, have either adopted or are close to adopting virtual currency regulation in some form. These include China, Russia, Singapore and the Philippines, which issued guidelines for virtual currency exchanges as recently as January.
 
Interestingly, the precursor to regulation in a number of these countries were warnings similar to those issued by the RBI. However, these warnings largely came around 2013, at a time when the understanding of the technology and the use of virtual currencies was much lesser than it is today.
 
In 2017, when users, trading and payments in these currencies are growing and maturing faster than ever, the warn-watch-wait approach simply will not work.
 
There are a number of downsides to not bringing in regulation when virtual currency use in India is still modest. Prominent among these is that regulation which kicks in when products and technologies have become systemic will invariably cause friction between regulators on the one hand, and businesses and users on the other, requiring stakeholders to make slow and possibly expensive changes to the way they transact.
 
Another issue is the key role regulation plays in consumer awareness and security. While the RBI may sleep soundly having issued its caveat emptor, given the attractive investment opportunity and ease of use and access virtual currencies offer, users are likely to throw caution to the wind and invest anyway.
 
The clear downside to this is that investors will likely fall prey to unregulated and unscrupulous Bitcoin exchanges and wallet operators (similar to a Paytm or Mobikwik, but exclusive to storing Bitcoin). Without any oversight, these operators rely on self-regulation. They could have severe gaps in data security, could charge exorbitant interest and transaction fees, and in a worst-case scenario, disappear with investor money altogether.
 
More importantly, the jury is still out on whether virtual currencies can be used to pseudonymously finance crime, including terrorism, and given the sensitive security scenario in India, it is important for the government to understand, and for the law to control, who can buy them and what they can do with them. As transactions grow, so will the chances and potential for virtual currency-related fraud.
 
Legal scholars Jack Goldsmith and Timothy Wu have said "government regulation works by cost and bother, not by hermetic seal", which appears to be the line the RBI is taking on virtual currencies.
 
With emerging technologies, however, especially those as radical as virtual currencies, governments are increasingly learning that the cost and bother of reactive regulation can be substantially greater than proactive regulation.
 
If the Indian government is serious about its cashless drive, it will have to consider virtual currencies as an integral part of the panacea being touted for our archaic economy.
 
It is up to the government and the RBI to lead the way by bringing forward-looking regulation for virtual currencies sooner rather than later, because there is already much catching-up to do.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

COMMENTS

Mukesh Gupta

3 weeks ago

The meteoric rise in value of Bit Coin is worth a concern. With demonetization, people have been buying BitCoins as a hedge as it is currently offering better returns than gold. Also comes with it some online scams. Another scam in making seems to be GainBitCoin. Another MLM company, which asks you to invest bitcoin, to get 1.8 times returns in 18 months and encourages to create network of people under them. Typical binary pyramidical scheme employed by numerous MLM companies but this one cashes on rising popularity of BitCoin. Perhaps a scam worth investigating for Moneylife team!!!

vswami

3 weeks ago

What is Bitcoin- is it a 'currency' as seems to have been assumed ?

In an attempt to find an answer, share below, a few tentative jottings :

Not allowing self to be lead by the nose , if not by the head, ALSO READ >

http://www.cnbc.com/…/bitcoin-price-rises-higher-than-gold-…

https://thenextweb.com/…/2017/03/03/bitcoin-worth-gold-co…/…

Upfront, to know, not all but what 'BC' is basically about, >

http://int.search.myway.com/search/GGmain.jhtml…

And, is there no tax angle, albeit premature, to be gone into ?

<> http://int.search.myway.com/search/GGmain.jhtml…

< https://bitcoin.tax/faq
<< https://bitcoinmagazine.com/…/tax-day-is-coming-a-primer-o…/
<<< Bitcoins taxed as property, not currency, IRS says
http://siliconangle.com/…/bitcoin-weekly-2014-march-26-irs…/

For a by_country overview >

https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country

More on search !

KEY Note: Per IRS BC is not currency but is property/intangible property ; if so, who is the regulatory authority ?

May you find an Answer HERE:

"In October 2015, a systems engineer and aspiring bitcoin entrepreneur, Theo Chino filed a New York Supreme Court lawsuit challenging the authority of the New York State Department of Financial Services to regulate bitcoin, claiming that even if the department had the authority to regulate, it utilized it in an "arbitrary and capricious" way.[154]"

But then, for India why RBI is sought to be projected as the regulatory authority ?- no clarity being readily available, still struggling to find an answer !

Over to eminent better-informed Experts at large for a study and enlightenment !
>>>>>>>>>>>>>>>>>>>>>>>>>

REPLY

Pradeep Kumar M Sreedharan

In Reply to vswami 3 weeks ago

Excellent, please include me in your contact list 8807790038

Pradeep Kumar M Sreedharan

3 weeks ago

In an anti-people, pro-elite world, when elected Govts dance to Corporates, when Corporations are People, when individuals have to counter Corporates on one to one basis, when Media is owned by corporates, etc etc then Bitcoin is a Savior. Easiest way to counter Bitcoin, is to allow it to self-destruct! Easily achieved by non-regulation. Burn the Cat with Hot Milk, and it will never come near Milk again. RBI needs to maintasin a steady supply to the Banksters with Bakaras

Mahesh S Bhatt

3 weeks ago

This business is more than US$560 billion card business which Cryptocurrencies ( Bitcoin/Coinsecure etal) are promoting post 2008 USA meltdown.

Idea is Governments/Banks/Property/bailouts have used taxpayers money shamelessly to bailout wrong ones & are corrupt so Engineers/VC's have comeout with Currency without Government control.

The major question is Trust in case of another Tech meltdown/who owns ( nobody that blockchain technology says which is scary).

Questions like who controls/regulates & its all speculations.

There are reported hacks of Cryptocurrency Bitcoins too & are used illegally/legally in limited avenues.

So challenges are serious there too Wait & Watch is better policy.

Mahesh Bhatt

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