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Nepal, India to sort out banned Indian currency crisis

Delegates from Nepal will also request the Indian govt to allow exchange facility through banks

IANS  |  Kathmandu 

Nepal Rastra Bank Source: Wikipedia
Nepal Rastra Bank Source: Wikipedia

and are set to sort out the crisis situation faced by tens of thousands of Nepali migrant workers after the November 8 of high-value Indian currency notes.

A team led by Rastra (NRB) Deputy Governor Chintamani Siwakoti is in for talks with Indian officials.

Last week, the Indian Finance Ministry wrote to the Nepali authorities to propose a date for sending delegates to to discuss and devise the modalities for facilitating the exchange of the banned Indian currency for the new notes.

Responding to the letter, the Nepali side requested that the meeting be held on Thursday in It is expected that two sides will sort out the crisis that is facing following the November 8 ban on Rs 1,000 and Rs 500 currency notes by India, a source said.

Siwakoti will hold talks with senior officials at the Reserve of (RBI) and, if required, with Finance Ministry officials.

During the meeting, according to Nepal's central bank, delegates from will also request the Indian government to allow exchange facility through the banking channel.

"We will ask them to provide exchange facility for up to Rs 25,000 in the banned denominations," Siwakoti told local media ahead of his visit.

The Siwakoti-led panel has already come up with a suggestion to ease the process of exchanging the banned currencies in -- including a software developed to facilitate and authenticate the exchange and other modalities.

has over 36 million banned Indian currency notes within its banking channel, according to sources.

The proposes to collect the demonetised notes from Nepali citizens and send them to the for verification before offering an equivalent exchange in Nepali currency.

As per the NRB, Nepali citizens have to open accounts in a bilateral financial institution and deposit the demonetised notes to receive the equivalent exchange directly in their accounts.

The Nepali delegates, according to Siwakoti, will also query about the status of new currency bills of Rs 500 and Rs 2,000 in

The technical team will also request the government to increase the annual quota of Indian currency supplied to

Currently, supplies Rs 6.2 billion in cash to every year.

Tens of thousands of Nepali migrant workers employed in as security guards, daily wagers, domestic help and others who receive salary in cash were hit hard by the move.

First Published: Thu, January 12 2017. 16:39 IST