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Ban on Notes of Rs 2000 & 500-Nov.08-2016
Nepal's plan to import Rs 100 denomination notes was delayed due to demonetisation
RBI to give Nepal Rs 1 bn in 100-rupee notes
By :
Babushahi Bureau
First Published :
Saturday, Jan 07, 2017 12:29 AM
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Kathmandu, January 6, 2017:
The Reserve Bank of India (RBI) has agreed to provide Rs 1 billion to the Nepal Rastra Bank (NRB) after its request that the country was facing a shortage of INR 100 denomination bank notes.
The NRB's plan to import Rs 100 denomination notes was delayed due to the Indian government's move to demonetise Rs 500 and Rs 1,000 currency notes on November 8, according to a report in the Himalayan Times on Friday,.
The RBI had earlier told the Nepali central bank to wait till the situation normalises post demontisation.
NRB officials have now said that the central bank is preparing to bring the amount from India within January.
After demonetisation in India, the Nepal Rastra Bank had also lowered exchange limit of Indian bank notes in Nepal.
Currently, it is providing an exchange facility of up to Rs 2,000 on basis of citizenship identification.
Similarly, it is providing Rs 10,000 to those who submit a copy of air or train ticket to travel to India and Rs 25,000 for those travelling to India for medical check-up.
Janak Bahadur Adhikari, an NRB official, said that the limit of Indian rupee exchange will not be reviewed until the RBI is able to provide regular exchange facility.
The RBI has been extending Rs 6 billion exchange facility to Nepal every year (based on Indian fiscal year calendar) but this year Nepal is unlikely to get this facility due to the demonetisation move, said Adhikari.
"NRB has brought only Rs 1.20 billion this year."
Currently, the NRB has around Rs 3.5 billion in its coffers and after bringing another Rs 1 billion, NRB will be able to provide exchange facility to Nepali and Indian nationals in Nepal for the next eight to nine months.(IANS)
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