Their families are facing a tough time withdrawing cash from banks since Prime Minister Narendra Modi announced the move on November 8.
The cash crunch has badly hit rupee remittance transaction to India through bank transfers and instant cash transfers, Gulf News quoted the staff at certain money exchanges in Abu Dhabi as saying.
"I sent money for my family but my son is unable to withdraw it from the bank because of long queues," Shamseer Singh, who works with an insurance company in Abu Dhabi, was quoted as saying.
He said many blue-collar workers from his state of Punjab depended on instant money transfers, which are very convenient for their families to collect.
The situation has deprived Indian expatriates of an opportunity to cash in on a record low exchange rate of rupees.
Indian rupee fell to a record low of 68.86 against the US dollar last Thursday, making one dirham worth 18.7 rupees.
On Sunday, rupee was around 18.58 against dirham. Despite that there were not many customers to send money to India.
A Deutsche Bank research report said on Sunday that the rupee is expected to see further depreciation in the coming months and may breach the 70-level (against dollar) by December and touch 72.50 by the end of 2017.
"Whenever rupee goes down against dollar, there used to be a huge rush; but not now," said a money exchange employee.
Western Union, confirming the continuing currency crunch at their collection points in India, said on Sunday that in addition to cash payout, they were facilitating direct to bank account services and providing consumers an option of receiving remittances via account payee cheques, said the report.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)