Kathmandu, May 10

Hoteliers have urged the government to manage exchange facility of high denomination Indian banknotes without delay citing that lack of exchange facility for such Indian currency notes is affecting the flow of Indian tourists to Nepal.

A delegation led by Amar Man Shrestha, president of Hotel Association Nepal (HAN), today met officials of the Foreign Exchange Department of Nepal Rastra Bank (NRB) and requested them to allow transaction of INR 500 and INR 2,000 banknotes in Nepal.

“The Indian government has already allowed Nepal to use high denomination Indian currencies. However, the Nepal government not allowing its use in the country will directly affect the flow of Indian tourists to Nepal,” said Shakya.

However, the central bank has been dilly-dallying to bring high denomination Indian currencies into use after the Indian government was earlier reluctant to provide exchange facility of demonetised banknotes in Nepal.

Citing that India is a major source country for tourists visiting Nepal, Shakya also informed that delay in allowing the use of high denomination Indian currencies will also reduce expenditure of Indian tourists in Nepal.

“Not all Indian tourists carry credit cards. Majority of them come to Nepal for short trips and prefer to carry cash,” said Shakya, adding that lack of exchange facility of high denomination Indian currency notes will discourage Indians from visiting Nepal.

Meanwhile, Chintamani Siwakoti, deputy governor at NRB, said that the Indian government should first write a letter requesting NRB to allow the exchange facility of high denomination Indian banknotes and clearly state the amount of such high denomination currency that an individual Nepali can carry during travel.

“Once the Indian government sets the limit of INR 500 and INR 2,000 notes that a Nepali can carry, we will ask the Indian government to first offer exchange facility of the demonetised high value Indian banknotes that were in legal possession of Nepalis,” said Siwakoti.

Though the Indian government allows both Indian and Nepali nationals to carry up to INR 25,000 in cash, the Indian government has not provided exchange facility for the demonetised Indian currency that Nepali people were holding legally.