Demonetisation: Nepal’s Central Bank saddled with Rs 7 crore old currency notes, asks India to accept them back

By: |
Published: January 24, 2020 8:27:04 PM

The Indian government on November 8, 2016 announced the ban on old 500 and 1,000 rupee notes to curb black money in the system.

Demonetisation, Indian currency, demo nepal, indian currency in nepal, black money, Demonetisation newsDemonetisation caught Bhutan and Nepal off guard where Indian currency is widely used. (IE)

Nepal’s Central Bank is saddled with Rs 7 crore of demonetised Indian currency but India is not making “adjustments” to take back the notes, Foreign Minister Pradeep Kumar Gyawali said on Friday, hoping the scrapped notes would be accepted by its neighbour. The Indian government on November 8, 2016 announced the ban on old 500 and 1,000 rupee notes to curb black money in the system. “Around INR 7 crore (demonetised currency) is deposited in our Central Bank. It went through the banking channel, I don’t know why India is not making adjustment (in the matter),” Gyawali said.

Demonetisation caught Bhutan and Nepal off guard where Indian currency is widely used. “We are not talking about the money which was transacted through the informal channels but it was through the banking channel. So I am requesting the Indian side to think about this pending issue,” Gyawali said. Of the Rs 15.41 lakh crore worth Rs 500 and Rs 1,000 notes in circulation on November 8, 99.3 per cent or notes worth Rs 15.31 lakh crore have returned to the banking system.

“It is upto India to take a decision. We have been requesting the Indian government for the past couple of years. We hope India will respond positively,” Finance Minister Yuba Raj Khatiwada told PTI. The land-locked country depends on India for trade and supplies. Indian currency is widely used in Nepal for day-to-day transactions, especially in the border areas.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1PM Narendra Modi’s Ujjwala Yojana scheme provided LPG access, but failed to promote its use, says study
2Donald Trump to sign trade accord with Mexico, Canada next week: White House
3Stray cows now to give birth to ‘elites’: Here’s how govt plans to resolve its cattle menace