Nepal Bank seeks RBI approval for making Rs. 2000 legal
By Vamsi Krishna N : 12-Jan-2017
In order to make the new Rs. 2000 issued by the Indian central bank after demonetisation, legal tender in Nepal, the Nepal Rashtra Bank is now seeking an official notification from the Reserve Bank of India. The Himalayan state says that the new official notification released by the RBI stating to mark the new Rs. 2000 a legal tender will replace the old RBI notice in January 2019 that made old Rs. 500 and Rs. 1000 a legal tender.
Until the new official notification, it is not possible to consider the new Rs. 2000 a legal tender in Nepal. According to a notification issued by the RBI on January 2015, the Nepalese citizens visiting India are allowed to have with them up to Rs. 25000 in denomination ns of Rs. 500 and Rs. 1000 notes, which are now banned after the demonetisation move taken by the Indian government on November 8, 2016.
So, in order to ease out the crisis situation being faced by the Nepalese citizens holding up the money in the denominations of Rs. 500 and Rs. 1000 notes, now Nepal is seeking a new official notification from RBI notifying to make the new Rs. 2000 a legal tender in Nepal.
Meanwhile, the Nepal’s Foreign Minister Prakash Sharan Mahat is visiting India in the next week, during which time he is going to discuss about the adverse impact of demonetisation on Nepal with the Indian leadership officials.
Since November 8, Mahat’s visit to India marks the first high level visit from Nepal, who will be attending 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.