KOCHI: Angamaly-native Reji John, an NRI who works in Dubai, is facing the difficult situation of not being able to send money to his bank account in Kerala, thanks to the government’s demonetisation drive.
Usually, Reji’s wife withdraws cash from the account using ATM card, for paying bills.
The family needs Rs 40,000 every month to pay LIC premium, vehicle loan and instalment of a chit fund. Reji represents the 24 lakh NRKs who have been facing difficulties in meeting their household expenses and paying bills since November 8. The demonetisation has changed Reji’s life completely, for the worse. The condition of around 72 lakh Malayalis who depend on overseas remittance is similar. It is estimated that over Rs 7,000 crore (Rs 230 crore per day) is sent by NRKs every month to their families back home.
Not getting money in a month means that daily transactions of these households have came to a grinding halt, as majority of the amount is used for household expenses.
“Last year, Kerala households received Rs 85,000 crore as overseas remittance, which accounts for 36 per cent of the State’s GDP.
‘‘After the government’s initiative, most of the families of expatriates have not been able to withdraw cash from ATMs, despite the accounts having sufficient balance. It has affected over 20 lakh households (around 20 per cent) in the State,” said S Irudaya Rajan, Chair Professor at the Ministry of Overseas Indian Affairs (MOIA).
NRIs who hold Rs 500 and Rs 1,000 currencies abroad will also be feeling the pinch as most of the exchange houses do not accept them.
“While their family members face difficulties in withdrawing cash from banks, most NRIs find themselves in a fix when it comes to exchanging the demonetised Indian currencies they possess.
‘‘It is not possible to exchange the notes abroad, and it would be unviable to visit India to change them. The majority of the NRIs hold high-denomination Indian currencies as the government permits them to carry Rs 25,000 while leaving the country. According to unofficial reports, some NRIs have send money through ‘hawala’ and had it deposited in cooperative banks, which do not seek to know the source of the money and pay higher interest. NRIs who have deposited money in non-resident bank accounts are in a panic situation,” said Pravasi Bandhu Welfare Trust chairman K V Shamsudheen.
Lulu Forex CEO Adeeb Ahamed said he hoped the situation would improve in the coming days.