The Reserve Bank of India
(RBI) has agreed to provide Rs 1 billion to the Nepal
Rastra Bank (NRB) after its request that the country was facing a shortage of INR 100 denomination banknotes.
The NRB's plan to import Rs 100 denomination notes was delayed due to the Indian government's move to demonetise Rs 500 and Rs 1,000 currency notes on November 8, according to a report in the Himalayan Times on Friday,.
had earlier told the Nepali central bank to wait till the situation normalises post demontisation.
officials have now said that the central bank is preparing to bring the amount from India
in India, the Nepal
Rastra Bank had also lowered exchange limit of Indian banknotes in Nepal.
Currently, it is providing an exchange facility of up to Rs 2,000 on basis of citizenship identification.
Similarly, it is providing Rs 10,000 to those who submit a copy of air or train ticket to travel to India
and Rs 25,000 for those travelling to India
for medical check-up.
Janak Bahadur Adhikari, an NRB
official, said that the limit of Indian rupee exchange will not be reviewed until the RBI
is able to provide regular exchange facility.
has been extending Rs 6 billion exchange facility to Nepal
every year (based on Indian fiscal year calendar) but this year Nepal
is unlikely to get this facility due to the demonetisation
move, said Adhikari.
has brought only Rs 1.20 billion this year."
Currently, the NRB
has around Rs 3.5 billion in its coffers and after bringing another Rs 1 billion, NRB
will be able to provide exchange facility to Nepali and Indian nationals in Nepal
for the next eight to nine months.