In a letter to British Indian Keith Vaz MP from Leicester East , the Bank of England Governor Mark Carney says the PRA (Prudential Regulation Authority) has no objection for the Non Resident Indians to deposit their money in the bank accounts with Indian banks.
“The PRA can confirm that it does not envisage any UK prudential regulatory obstacles if the Indian authorities decided to allow Indian Rupee notes to be deposited with Indian banks in the UK,” Carney said in the letter.
Vaz, Member of Parliament and the longest serving Member of Parliament of Asian origin in the House of Commons, has welcomed a response from Mr Carney.
The Governor has stated that, for British Indians unable to exchange their rupees, the Indian Government can make the decision for currency to be exchanged at Indian banks in theUK. The Bank of England has ensured that there are no obstacles in this being done.
“Mark Carney has gone the extra mile to ensure members of the Indian diaspora in the United Kingdom may be able to exchange their Indian currency in the UK, following the bold decision to demonetise certain Rupee denominations,” said Mr Vaz.
“He has presented a pathway for this issue to be resolved which will hugely benefit members of the Indian diaspora in the UK.
“The Indian government is now free to enable currency to be exchanged in the UK, and avoid the deep concern currently being faced by many members of the British Indian community, who may not be able to travel to India by the deadline.
“The Governor’s efforts to remove any obstacles which may prevent this are most welcome, and I am sure the community as a whole will wish to thank him for doing so. I will be writing to Indian Finance Minister Arun Jaitley with a copy of this letter in the hope these issues can be resolved.”