Indian currency crunch in Rajbiraj

Rajbiraj, April 21

There has been an acute shortage of Indian banknotes in Saptari.

Some individuals and traders have been exchanging Indian banknotes at higher rates due to shortage of Indian currency in the market.

Shortage of Indian banknotes has hit hard both the common people and entrepreneurs. Due to proximity with the Indian market, many entrepreneurs and commoners have a compulsion to carry out financial transaction in Indian currency.

Local entrepreneur and former secretary of Saptari chapter of Federation of Nepalese Chamber of Commerce and Industry  Baiju Joshi said Indian traders took Rs 5 to Rs 10 more per one hundred while carrying out transaction in Nepali banknotes.

Ishwor Prasad Sah of Rajbiraj Municipality-8 said, “Common people are forced to exchange Nepali currency for Indian notes at high rates,” Sah complained.

Rastriya Banijya Bank has stopped exchanging Indian banknotes for the past one year. As a result, people are forced to visit shops and houses of those involved in exchanging banknotes unlawfully.

Locals say closure of the money exchange services by the bank had given rise to illegal transaction of Indian currency in the district.

Rajbiraj-based Rastriya Banijya Bank alone was exchanging Indian currency notes. For household purposes, the bank provided INR1,000 and INR 5,000 for treatment in India.

A staffer at the bank said currency exchange counter was closed after Nepal Rastra Bank stopped dispatching Indian banknotes to them.

Meanwhile, a tea stall is operating as a currency exchange counter in Rajbiraj.