Nepal people are facing the issues for exchanging withdrawn Indian notes with the denomination of Rs 500 and Rs 1000. As per the recent reports, the country’s central bank on Thursday has banned the exchange of the India’s latest currency notes Rs 2000 and Rs 500.
The new Nepal Rastra Bank will not allow the Indian currency notes to exchanged until the release of the latest notification Reserve Bank of India (RBI) about the Foreign Exchange Management Act. This notification will allow the citizens of the foreign countries for holding a certain amount in the Indian currency says, officials.
Ramu Poudel the Nepal Rastra Bank’s chief for Eastern Region told the members of the business community in Biratnagar about the new Indian rupees, and it is considered as “illegal” and cannot be exchanged until the new arrangements are done by the Indian Government.
“As of now, our understanding with the Reserve Bank of India is that a Nepali citizen can hold up to Indian Rs 25,000 (in the) old Rs 500 and Rs 1,000 notes. Even the fate of those old notes is uncertain, how these new Indian notes coming into the market can be considered as legal?” says Poudel.
The currency of India is accepted across the Nepal, and now many people are facing the serious problems in exchanging the old Rs 500 and Rs 1000 notes. Due to the open border for these two nations, these new Indian notes are also entered into the areas along the border with India.
Both the countries India and Nepal are yet to make an agreement on this new exchange of the withdrawn notes held by the citizens of Nepal. Ramu Poudel says that these two new central banks are in close contact for standing on this issue, but there is no outcome received on this issue.
Nepal Rastra Bank is building the plans and preparing the guidelines for exchange the withdraw process of the Indian currency notes.