Nepal has made all Indian currency bans above Rs 100. This decision was taken in a recent Cabinet meeting. After this decision, the use of Indian rupees 200, 500 and Rs 2,000 in Nepal will be considered illegal. Government spokesman Gokul Bascotta told the media on December 13 giving information about this decision of the government-
The government has decided to issue a notice about this. People should not use notes of 200 rupees 500 and 2,000 rupees in Indian currency, do not take them along with them or keep them with you.
These notes are being used with open arms in Nepal for the past two years.
After the ban, Nepal National Bank had banned new Indian notes of 2000 and 500. On behalf of Nepal, it was said that these new notes will be valid only in Nepal, when India issues notification under the Foreign Exchange Management Act. Then when this process was completed by India, then these notes were used in Nepal by open hands. Earlier in 2002, Nepal also banned notes of 1,000 rupees and 500 rupees from Indian currency. These bands lasted for 13 years. Then in 2015, when Prime Minister Narendra Modi visited Nepal, Nepal decided to end this ban. The Indian tourists visiting Nepal that people of Nepal, who earn money in India, these new notes in Nepal are being brought in common use. There is an open border between India and Nepal. People have plenty to come and go. So the use of Indian currency in areas near the border is also very high. Now the decision taken by the Nepalese government will be a problem for the people.
India bans, Nepal raises issue
In November 2016, India made a ban on its lodging. 500 and 1,000 notes are no longer legal tenders. For this reason, Nepal had a lot of trouble. India’s notes were always going well in Nepal. Were valid. There was a time to change old notes in the banquet. Together, many conditions were also kept. Then it happened that the Indian notes of Rs 500 and 1,000 rupees were left to Nepal, which India had stopped. Nearly 68 billion rupees was in the currency near Nepal. Nepal has talked to India many times about this. Nepal wanted India to exchange that currency. In April 2018, when Nepal’s Prime Minister K P Sharma Oli came to India, he raised this issue even then. But no result of these efforts of Nepal came out. It was reported in August 2018 that India is not going to exchange its old notes lying near Nepal and Bhutan. Economic Affairs Secretary Subhash Chandra Garg in the Indian Finance Ministry had then told the media-
I think that there are very few notes of rupees 500 and 1,000 rupees closed by the Indian currency near Bhutan and Nepal. No decision has been taken to exchange them so far. Those notes will be replaced, the possibility of this is very rare.
- Most of Nepal’s business is with India
Most of Nepal’s business is with India. India is its biggest trade partner. From petrol to the rest of the things needed, India supplies most of the supplies in Nepal. If the notes of India will not run in Nepal, then business will also suffer. Apart from this, there are plenty of Indian notes in the house which they keep in their homes. They are also going to have trouble.