Panel to visit India to sort out issue of demonetised notes

Kathmandu, January 8

A panel led by a deputy governor of Nepal Rastra Bank (NRB) is planning to visit India this week as the Ministry of Finance, India, has called central bank officials to sort out the issue of demonetised Indian banknotes circulated in Nepal.

The panel will discuss on the modality to surrender the demonetised Indian banknotes circulated in Nepal and also finalise the issue to bring in use the new INR 2,000 and INR 500 notes issued by the Reserve Bank of India (RBI) recently, according to a high level source at NRB.

“The panel will hold discussions with authorities of the Indian Finance Ministry and RBI.” The panel will also request RBI to provide additional INR 100 notes as the country has been facing a crunch of Indian rupees after the demonetisation move of the Indian government.

“We will meet and discuss with the authorities of Finance Ministry of India and RBI to seek a way out to surrender the currency held by NRB, banks and financial institutions, money changers, hotels and the general public,” said Deputy Governor of NRB Chinta Mani Shiwakoti.

NRB Deputy Governor Shiwakoti also mentioned that the central bank had developed a mechanism to plug all possible loopholes to stop the inflow of illegal Indian currency to Nepal. “We want to assure the Indian government that only genuine people will be able to avail the exchange facility,” he added.

Indian currency is widely accepted in the country and the Indian government also allows both Indian and Nepali nationals to carry up to INR 25,000 in cash.

The deputy governor-led committee comprises Joint Secretary of Ministry of Finance Anada Raj Dhakal, Executive Director of Foreign Exchange Management Department of NRB Bhisma Raj Dhungana and Minister (Economic) at the Embassy of Nepal in New Delhi Krishna Hari Pushkar.