At the time of demonetisation, approximately Rs 50 million worth of Indian currency was held in Nepal’s banking system, which has still not been exchanged.
Nepal has lifted a decade-long ban on carrying high-denomination Indian currency, including Rs 200 and Rs 500, in the Himalayan nation. Jagdish Kharel, the Minister for Information Technology and Communication Jagdish Kharel, who also handles the responsibility of government spokesperson, stressed that following the Cabinet meeting held on Monday, a decision was taken to allow the import and export of Rs 200 and Rs 500 denomination Indian notes. However, he added, “But the cap remains up to Rs 25,000 to be carried between India and Nepal.”
Kharel further elaborated, “The provision has been made for Nepalese or Indian citizens to bring Rs 25,000 per person from India to Nepal and take the same amount from Nepal to India. With the government lifting the ban on high-denomination Indian notes, those notes issued after November 9, 2016, can be brought into circulation.”
Following India’s decision to demonetise high-denomination currency notes in the year 2016, Nepal decided to ban the import and export of such notes. Notably, the Reserve Bank of India (RBI), India’s central bank, had made proper arrangements to facilitate the import and export of high-denomination Indian notes to neighbouring Nepal.
The RBI made crucial changes, which include amending the Foreign Exchange Management Regulations, 2015, permitting the import and export of high-denomination Indian notes between both countries.
Following India’s decision to ease restrictions, the Nepal government lifted the ban, along with the movement of the currency.
Following India’s demonetisation, Nepal put restrictions on the circulation of Indian currency notes of denominations that were higher than Rs 100. The move is being referred to as a crucial step regarding the open border between the two countries and India’s significance in Nepal’s trade activities.
At the time of demonetisation, approximately Rs 50 million worth of Indian currency was held in Nepal’s banking system, which has still not been exchanged.
ALSO READ | 3 Post Office schemes that offer better returns than bank FDs: Check full details inside
