Updated 12:01 pm, Aug 08, 2019

Kathmandu seeks RBI notification to make new Rs 2,000 note legal tender | SNE

By  ET .
Jan 12, 2017

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With Nepal’s Foreign Minister Prakash Sharan Mahat’s visiting India next week, Kathmandu is seeking an official notification to make the new `2,000 INR valid in the .Himalayan state, replacing the January 2015 RBI notice that made `500 & `1,000 (now banned) INR legal tender there.
The `2,000 notes issued after .the November 8 demonetisation drive is not yet considered legal tender in Nepal. The ad verse impact of demonetisation on Nepalese citizens is expected to figure during Mahat’s meetings with the Indian leadership, according to persons familiar with the developments.Nepal Rashtra Bank (NRB) still hasn’t accepted `2000 note as a .legal tender and has sought a notification from the Indian central bank on the same. As per an RBI order from January 2015, any Nepalese individual visiting India was allowed to have `25,000 in denominations of 500 & 1,000 (now banned).

Thousands of Nepalese are now holding up to `25,000 in de nominations of 5001000.

Last November, the MEA had moved the Ministry of Finance to at least exchange Rs 25,000 held by Nepalese citizens in two banned denominations.But trouble started after some Indian currency notes were withdrawn and the matter is yet to be sorted out despite several rounds of talks between the Indian and Nepalese officials. Mahat may seek an early resolution, hinted official sources. This is the first high-level visit from Nepal to India since November 8, and Mahat will be present at the second edition of the Raisina Dialogue, India’s premier foreign policy dialogue organised by the Observer Research Foundation in collaboration with MEA between January 17 and 19. Recently, in an effort to provide some succor, RBI agreed to provide NRB notes of Rs 100 denomination worth a total of Rs 100 crore to tide over a shortage of Indian currency.

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