KATHMANDU: The new currency notes of ₹ 500 and ₹2000 are deemed illegal and banned for the exchange said Nepal’s Central Bank on Thursday. According to the reports- The Nepal Rastra Bank said the new Indian notes, which have appeared in border areas dues to the open border, cannot be exchanged until India accords approval.
Ramu Poudel, chief of the NRB’s eastern region, told all the members belonging to the business group in Biratnagar that the Indian currency will be considered as “illegal” until Indian Apex Bank announces new exchange facilities.
Since India and Nepal haven’t come to any agreement on the modality of exchange of the withdrawn notes, the new notes will be exchangeable in Nepal only after India’s Central Bank issues a new FEMA notification under the Foreign Exchange Management.
The FEMA notification allows the foreign countries or their nationals to hold on to a certain amount of Indian currency. Presently India has allowed Nepali citizens to keep individually ₹ 25000 in Indian notes.