Kathmandu, November 9
Nepal’s central bank says the country’s formal banking sector has around INR 20 million in 1,000 and 500 denomination bank notes, a day after the Indian government said the hard currency will no longer be acceptable legal tender.
According to NRB officials, a senior official from the Indian Embassy contacted Nepal Rastra Bank governor Chiranjibi Nepal on Tuesday night to inform him about New Delhi’s decision. Governor Nepal then spoke to Reserve Bank of India Officials on the phone on Wednesday morning to discuss the situation.
The NRB then took stock of the notes, and found out that Nepal’s system has around INR 20 million in 1,000 and 500 denominations, a spokesperson for the central bank said.
A ban on the said denominations were in place in Nepal until two years ago, and that is why the value of such notes is limited, despite the large volume of Indo-Nepal trade, said the spokesperson.
Governor Nepal said NRB will wait for an RBI decision before it decides what to do with the notes. NRB itself has notes of the two denominations worth Rs 200,000. The central bank has already directed banks and financial institutions not to accept the notes until a formal decision is taken on their fate.
