Nepal Rashtra Bank has banned the exchange of India’s new currency notes of Rs 500 and Rs 2000 and termed the notes as unauthorized and illegal.
Banning of new Indian currency notes comes into intervention when people started facing problems while exchanging old currency notes as Indian currency notes are widely used in Nepal.
Central bank said the new Indian notes cannot be exchanged until the Reserve Bank of India (RBI) notify under the Foreign Exchange Management Act.
Such notification allows citizen of foreign countries to hold a certain amount in Indian currency, officials said.
According to Nepali news portal Online khabar , NRB spokesperson said the new currency notes of Rs 500 and Rs 2000 are not legal in Nepal, he also said that the new currency notes will be legalized only when India issues a notification as per Foreign Exchange Management Act.
Central bank has set up task force team to prepare the guidelines for exchanging the notes. Reserve Bank of India has not issued any notification yet under the Foreign Exchange Management Act for use of new currency notes by other foreign countries.
So, at present only Rs 100 currency notes are legal in Nepal.