Nepal bans new Indian notes, calls them illegal'
Nepal Rastra Bank has called the new currency notes unauthorised and illegal .
New Delhi/ Kathmandu: Nepal Rastra Bank on Thursday banned the use of India’s new currency notes of Rs 500 and Rs 2,000 denomination, terming them “unauthorised and illegal”.
These two currency notes were issued by the Reserve Bank of India recently after old Rs 500 and Rs 1,000 denomination notes were withdrawn.
Nepal Rastra Bank (NRB) has called the new currency notes “unauthorised and illegal”.
NRB spokesperson Narayan Poudel said these new currency notes are not yet legal in Nepal, according to onlinekhabar.com.
Mr Poudel said these notes will be legal in Nepal only when India issues a Fema notification as per the Foreign Exchange Management Act.
Meanwhile, with a concerned Nepal and Bhutan raising with India the issue of implications of Indian demonetisation —— since Indian currency is legal tender in both nations —— New Delhi said it is “considering the matter and the RBI will remain in touch with their counterparts in Nepal and Bhutan”.
The MEA said, “Both the Nepal Rashtra Bank and the Royal Monetary Authority of Bhutan are in touch with the RBI regarding facilitation of collection and deposit of Indian bank old series notes of Rs 500 and Rs 1,000 denominations that are already in stock of the Central Banks, other banks/ financial institutions and general public in Nepal and Bhutan under existing provisions. The matter has been raised by both the Governments of Nepal and Bhutan as well. The government is considering the matter and the RBI will remain in touch with their counterparts in Nepal and Bhutan.
The inter-ministerial task force formed by the government is also looking into issues relating to foreign nationals/tourists in India, NRIs/PIOs holding old series high denomination notes, and the diplomatic missions based in India. Consultations are ongoing and as soon as we have concrete recommendations from the task force we will share with all stake holders.”
According to news agency reports, Nepal and Bhutan -— also two major recipients of developmental aid from India — have taken up with New Delhi the issue of demonetisation of high-value currency bills and the impact it could have on financial assistance to them and that as per this year’s budget, India has earmarked Rs 5,490 crore for Bhutan and Rs 300 crore for Nepal.