Low banking transactions of IC

KASKI: Despite the growth in number of banks, financial institutions and moneychangers in the country the exchange of Indian currency through banking channels is very low in Pokhara.

Exchange of Indian currency between individual-individual and rampant transaction of IRs 500 and IRs 1,000 — both banned denominations — is common in villages and even cities like Pokhara.

Indian currency is exchanged like a national currency in Gandaki and Dhaulagiri zones, considered the hotbeds of Indian money exchange. If data of the Nepal Rastra Bank (NRB), Pokhara office, are anything to go by, transaction of Indian currency through banking channels is going down.

“While transaction wo-rth Rs 558.7 million was made through NRB in fiscal year 2005-06 in Pokhara, it fell to Rs 323.8 million in 2006-07. The transaction of IC dipped further in 2007-08, coming down to Rs 407.7 million,” said Keshav Thapa, NRB Manager, Pokhara.