08 December,2016 06:35 PM IST | | mid-day online correspondent
The AIU of Mumbai customs is keeping a close watch on flyers who are bringing in foreign currency. They have received intelligence that some people are actually converting demonetised notes into foreign currency
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The Air Intelligence Unit (AIU) of Mumbai customs is keeping a close watch on flyers who are bringing in foreign currency. This is because they have received intelligence that some people are actually converting demonetised notes into foreign currency.
A senior officer told Hindustan Times, "There are reports that people are converting their old currency to foreign currency and then taking it out of the country, only to carry it back again. They declare this foreign currency before the customs and make it legal."
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The report went on to add that, according to the rules, there is no limit on bringing foreign currency to India. But, declaring currency on a Currency Declaration Form (CDF) under two conditions is compulsory. First, where the value of the notes is in excess of US$5,000 or equivalent and second, where the aggregate of the foreign exchange is more than US$ 10,000 or equivalent.
Officials informed Hindustan Times that post demonetisation, there is a new modus operandi when it comes to money-laundering and smuggling. Sources however told the paper that the AIU is finding things difficult as baggage scanning machines are equipped with metal detectors, which need to be upgraded to detect currency. "New Indian notes of Rs 500 and Rs 2000 are also in demand by Forex dealers who are abroad. Some are resorting to smuggle them abroad," the officer revealed to HT.
In the wake of the note ban, foreign exchange centers outside the country have stopped accepting the notes, the report concluded.
