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Ban on IC notes affects Nepal

Hand with Indian thousand rupee notes
Hand with Indian thousand rupee notes

The ban imposed on the use of high denomination notes of 500 and 1000 IC notes has also affected the Nepalese, mostly in Tarai and the Karnali zone, form where many Nepalese go to India to work.
Many Nepalese working in India were also unable to exchange the notes. These people are greatly worried whether they could exchange the money. Indeed, it is not known how many banned notes are with the people.
The Nepal Rastra Bank a few days ago sought exchange facility worth INR 33.6 million with Reserve Bank of India against the high denomination Indian currency notes INR 500 and INR 1,000 that are in holding of Nepal Rastra Bank, banks and financial institutions and money exchange facilities. However, there is no record of the banned notes which are with the people.
If the NRB fails to exchange the notes which are with the people, they will be losing a huge amount of wealth.
The ban imposed by India on the notes of 500 and 1000 denomination should have come as a big lesson for the Nepalese businessmen as well as the people that they should not use the foreign current in Nepal,
The ban created such a big problem that Prime Minister Pushpa Kamal Dahal and Finance Minister Krishna Bahadur Mahara had to telephone their Indian counterparts seeking help to resolve the problem.

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