Business
Nepal apex bank announces ban on Indian currency notes
Kathmandu: Nepal’s central bank has announced the ban of Indian currency notes with denominations above Rs 100.
The Nepal Rastra Bank (NRB) on Sunday issued a circular for the institutions licensed by it notifying them about the ban, international news agency reported. Nepal’s cabinet in December had decided to ban the use of these currency notes.
The decision to ban these notes has come a time when the NRB has requested the Reserve Bank of India (RBI) are questing the latter to allow Nepal to use currency notes with all denominations.
Currently, only the notes with a denomination of Rs 100 and below are freely exchangeable in Nepal. Earlier, the Nepal government has banned the use of Indian currency notes of Rs 2,000, Rs 500 and Rs 200 denominations, according to a media report.
Apex bank in Nepal announces ban of Indian currency notes:
The government has asked the people to refrain from keeping or carrying Indian bank notes higher than Rs 100 denomination as it has not legalised them, The Kathmandu Post quoted Minister for Information and Communications Gokul Prasad Baskota as saying.
The decision can affect Nepalese labourers working in India as well as Indian tourists visiting Nepal.
The Indian government introduced notes of Rs 2,000, Rs 500 and Rs 200 denominations after demonetisation in 2016.
People have been using new Indian currency notes in the Nepali market for nearly two years.
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