KATHMANDU: The Government of Nepal has reportedly asked India to provide an exchange facility of the now defunct high denomination bank notes  to Nepali citizens.

Quoting an unnamed Nepali diplomat, The Economic Times has reported on Wednesday that Nepal urged India to exchange up to Rs 25,000 in old denominations that Nepali citizens are holding.

Although India's Ministry of External Affairs has approached the Finance Ministry seeking redressal of the issue, South Block is yet to hear from the latter in concrete terms, according to the report.

"The official line for the moment is that government of India’s task force, comprising Ministry of External Affairs (MEA) and finance ministry officials, are trying to arrive at a solution," the report said.

After a surprise decision on demonetisation in its bid to curb black money and corruption, India, however, is yet to make any decision on the fate of high denomination notes that were legally circulated in neighbouring Nepal and Bhutan.

Thousands of Nepalis have been affected due to New Delhi's announcement to abolish the old bank notes of Rs 500 and Rs 1000 last month.

Nepal’s Ambassador to India Deep Kumar Upadhyay is reportedly in Mumbai to hold consultations with officials at India's central bank, the Reserve Bank of India, to discuss ways to get the old currency notes exchanged.

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