Dhangadi, December 26

Bearing heavy loss with the ban on Indian bank notes of denominations 500 and 1000, Nepalis living along the Nepal-India border are forced to pay high commission to exchange new Indian notes.

Currently, people from the Nepali side are forced to pay Rs 175 for IRs 100. The obligation of the people living at the border to visit the Indian side has compelled them to purchase Indian currency at a high price.

Given the shortage of Indian bank notes, some people have started the business of swapping Indian currency notes at high commission in different market places including Dhangadi and Mahendranagar. These people are taking up to 20 per cent commission to exchange Indian bank notes.

Harka Bahdaur Deuba, a local from Dhangadi complained that people like him were bearing the brunt owing to high commission for note swap.

“Locals at the border sold out the banks notes of 500 and 1000 at a very low price earlier when the ban was put in place while they are buying notes paying a high price now,” Deuba added.

The high commission in the exchange of Indian bank notes has led to price hike of Indian goods in the Nepali market.

Trader Pardip Saud from Attariya said that goods imported from India cost more as Nepali notes were swapped at 20 per cent lower value. “Since we are importing goods paying a high price, customers are sure to feel the burden,” Saud said.

Consumers’ Forum Nepal Doti Chairman Padamsingh Bam said that traders along the border might have created artificial shortage of Indian bank notes. Bam accused the traders of cheating commoners in a premeditated way.

Nepal Rastra Bank Dhangadi Manager Bishrut Thapa said that his bank was providing up to IRs 2,000 to an individual at a time. “In case of medical emergency, we provide up to IRs 20,000 if medical documents are furnished,” Thapa said.

Kailali CDO Govinda Rijal pledged that the DAO would take an action if cases were filed at his office. “No case on high commission in the exchange of bank notes has been filed till date”, CDO Rijal said.