What is the legal status of currency from dead or defunct countries — USSR, Yugoslavia, Ottoman Empire?
Currency from countries that no longer exist — the Soviet Union, Yugoslavia, the Ottoman Empire, East Germany, Austro-Hungary, and others — is technically 'foreign currency' under FEMA's broad definition but has zero monetary exchange value. In practice it is treated as collectible goods with no live FEMA implications. For the Antiquities Act: coins and notes 100 or more years old from defunct countries are antiquities — but coins do not require ASI registration. The export restriction applies to all antiquities including defunct country coins.
FEMA analysis — technically foreign currency but zero exchange value
FEMA Section 2(m) defines 'foreign currency' as any currency other than Indian currency. A Soviet ruble note technically qualifies. But FEMA's retention and surrender rules are calculated on the USD equivalent value. Defunct country currencies have no established USD exchange rate — no Authorised Dealer bank will quote one. The USD equivalent is effectively zero, making the FEMA retention calculation inapplicable in practice. No collector has ever been penalised under FEMA for holding Soviet rubles or Ottoman liras.
The Antiquities Act — registration not required for coins
Defunct country coins and notes that are 100 or more years old are antiquities under the Antiquities and Art Treasures Act 1972. However, as established in Q156B, the mandatory registration notification S.O. 448(E) does not include coins in its schedule. A collector holding a 100+ year old Austro-Hungarian Krone or Tsarist Russian kopek does not need to register it with ASI. The same applies to Ottoman coins, Mughal-era coins, or any other defunct country coinage.
For defunct country banknotes 100+ years old: the export restriction of Section 3 applies. A collector wanting to take a 100+ year old Ottoman lira note out of India needs an ASI export permit. The domestic possession of such notes is unrestricted.
GST on domestic sale
Selling defunct country currency within India is a sale of numismatic goods. GST at 12% under HSN 4907 applies to banknotes; 5% under HSN 9705 applies to coins. The collector value, not the monetary value (which is zero), forms the taxable base.
The USSR no longer exists. Its coins no longer circulate. But a 1910 Tsarist Russian silver ruble is still an antiquity under Indian law — and still cannot leave India without an ASI permit. The law outlasts the empires.
Laws & authorities referenced in this chapter
FEMA 1999 — §2(m) (foreign currency definition; technically includes defunct country coins/notes)
Antiquities and Art Treasures Act 1972 — §2(b) (100+ year defunct country coins/notes = antiquities)
Antiquities and Art Treasures Act 1972 — §3 (export restriction applies to all antiquities including coins)
S.O. 448(E) dated 2 July 1976 — mandatory registration schedule excludes coins
CGST Act 2017 — HSN 4907 (banknotes 12%), HSN 9705 (coins 5%)
Defunct country currency: technically 'foreign currency' under FEMA §2(m) but zero exchange value — FEMA retention rules inapplicable; treated as collectibles in practice. Antiquities Act for 100+ year items: APPLIES — but registration NOT required for coins (S.O. 448(E) excludes coins). Export: ASI permit required for all 100+ year items including coins. Domestic possession and trading: completely unrestricted. GST: 12% banknotes (HSN 4907), 5% coins (HSN 9705).
This is educational content, not legal advice. For a specific situation, please consult a qualified legal professional. Excerpted from Currency, Coins & The Law by Mayank Agarwal, Part 12: FEMA & International — Cross-Border Collecting — Currency, Antiquities & Foreign Exchange.