Nepal bans new Indian Rs 500 and Rs 2,000 notes

Nepal Rastra Bank (NRB) has called the new currency notes "unauthorised and illegal".

By: PTI | Kathmandu | Published:November 24, 2016 9:29 pm
Nepal Rastra Bank, Nepal new Indian notes, Rs 500, Rs 2000, denomination, Reserve Bank of India, Rs 1000, news, latest news, India news, national news, India is likely to issue a FEMA notification, allowing people in Nepal and India to possess certain amount of Indian currency. (Source: Express Photo by Arul Horizon)

Nepal Rastra Bank on Thursday banned the use of India’s new currency notes of Rs 500 and Rs 2,000 denomination, terming them “unauthorised and illegal”. These two currency notes were issued by the Reserve Bank of India recently after old Rs 500 and Rs 1,000 denomination notes were withdrawn. Nepal Rastra Bank (NRB) has called the new currency notes “unauthorised and illegal”.

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NRB spokesperson Narayan Poudel said these new currency notes are not yet legal in Nepal, according to Onlinekhabar.com. Poudel said these notes will be legal in Nepal only when India issues a FEMA notification as per the Foreign Exchange Management Act. India is likely to issue a FEMA notification, allowing people in Nepal and India to possess certain amount of Indian currency.

Earlier, a ban was in effect in Nepal till last year against the use of Rs 500 and Rs 1,000 denominations notes. Authorities had lifted this ban after the visit of Prime Minister Narendra Modi to Nepal. Nepal last year allowed people to carry Indian Rupees of higher denominations upto Indian Rs 25,000.

The Reserve Bank of India had formed a task force to ease currency exchange facility in Nepal for non-Indians who possess the now-defunct notes of 500 and 1,000 denominations.

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  1. S
    Suresh Hattangadi
    Nov 24, 2016 at 10:40 pm
    Is this newsworthy?
    Reply
    1. S
      S Subramaniam
      Nov 24, 2016 at 7:42 pm
      Nepalese PM requested Indian PM for exchange of invalid high-end notes in their possession. This is being examined by Ministry of Finance/GoI and the final outcome is not known as to whether Indian Government has acceded to their request. Since the Indian rupee is a valid currency in Nepal unlike other Countries where we convert into respective foreign countries currencies whenever Indians go abroad it would be ideal if convert Indian Rupee to Nepalese Rupee whenever we visit Nepal and similarly when the Nepalese visit they get their currencies converted into Indian Rupee whenever they visit India. This would arrest the circulation of fake Indian currencies..
      Reply
      1. M
        Mahender Goriganti
        Nov 24, 2016 at 10:33 pm
        Making mountain out of nothing, it is all technical issues and protocols. .
        Reply
        1. R
          Rasikan
          Nov 24, 2016 at 5:45 pm
          yes, Nepal, that is a route for shipping in FICN (Fake Indian Currency Notes) caution exercised
          Reply
          1. A
            Ab Saleem
            Nov 25, 2016 at 3:27 am
            Do we care nepal.
            Reply
            1. S
              Shubham
              Nov 25, 2016 at 2:38 am
              Even Nepal does not recognize Modified currency
              Reply
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