Kathmandu, May 25

Nepal Rastra Bank (NRB) has directed banks and financial institutions (BFIs) to categorise banknotes based on their quality — new, clean and useless.

Issuing a nine-point circular on Sunday, the central bank directed BFIs to categorise banknotes accordingly and maintain their quality. BFIs have been directed to categorise banknotes that are eligible to be circulated via ATM machines (new notes), payable from bank counters (comparatively old notes) and notes that are ineligible for circulation in the market.

Accordingly, BFIs have been asked to use green slip on packets of notes to be sent into circulation through ATMs, white slip on packets of notes to be circulated from bank counters and red slips on banknote packets that are ineligible to be circulated in the market.

BFIs are also required to clearly state the name of the branch, employee counting the notes, employee identification number, signature and date on every slip attached in banknote packets.

NRB has also asked BFIs to categorise banknotes that have been scratched, burnt, melted, soaked and with damage in printing, letters, numbers, pictures and security features under ‘ineligible for circulation’.

Banknotes with picture of former kings are to be categorised under ‘ineligible for circulation’.

NRB has also asked BFIs to deposit such ineligible banknotes at the central bank. It has also ordered BFIs to effectively disinfect banknotes that go into circulation in the market.

NRB has also restricted BFIs from using staple pins in banknotes or its bundles.

A version of this article appears in e-paper on May 26, 2020, of The Himalayan Times.