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No change in exchange

Sunday, January 1st, 2017

ic-note-2The 50-day deadline to exchange Indian currency notes of 500 and 1,000 is over, but the fate of those currency notes in Nepal remains uncertain.

Even after telephone conversations between Prime Minister Pushpa Kamal Dahal and his Indian counterpart Narendra Modi, the Reserve Bank of India (RBI) is yet to inform the Nepal Rastra Bank (NRB) about how  these banned currency notes can be exchanged, if at all.

When Modi announced demonetisation in November aiming to weed out black money and counterfeit currency from the Indian economy, the NRB had more than INR 33 million in high denomination 500 and 1,000. It is believed that Nepali businessmen also had a big amount of INR 500 and 100.

The end of the 50-day deadline in India has set off fears in Nepal that the banned Indian currency notes possessed by the NRB and Nepali nationals will remain worthless.

However, the NRB is hopeful that it will still reach an understanding with the RBI to exchange the banned currency In the hands of Nepalis. The NRB’s Executive Director Bishma Raj Dhungana has said that India will hopefully make special arrangements for Nepal and Bhutan.

Finance Minister Krishna Bahadur Mahara and the NRB governor Chiranjibi Nepal have held several rounds of talks with their Indian counterparts. The NRB has also written a letter to the RBI, but has not received a reply yet.


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2 Responses to “No change in exchange”

  1. Anonimous on Says:

    Indian express is not even publishing my comments any longer, all indians are furious with their government! He ( Modi) has reasons, blaming Sonia Gandhi to be a foreigner, I think Modi is a foreigner and this demonization demonitisation is absurd! No tourist will come, they had people die in queues, the euro was also a failed project. Tertorism made this his intentions are good, though measures unbalanced. Maoism is exported by India, China really seems better managed.

  2. anonymous on Says:

    I can reply that for you you commit to doing the same and he may give another Helicopter. Fussing over borders is not without necessity. Europe is all anti terrorism, by the way new jobs in Security.
    Nepal had no banks when I first came, at least no culture of using them.

    Modi is doing the amazing horrendous job of uplifting India to the modern World. I hate him for it, but surely we can see his viewpoint.

    Who is next? China has banking controlled. At least think about it, it will make the blanket economy transparent. Not by some 5 different language just NUMBERS in black and white. People will not recieve Livelihood contribution from quake 4 years after they died.

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