Nepalese to get Rs 4500 exchange facility of demonitised notes

A Nepalese national, who possess demonetised Indian banknotes of Rs 500 and Rs 1,000 denominations can exchange up to Rs 4,500, the RBI has told Nepal's central bank, official sources said here today.
The offer was made by officials of the Reserve Bank of India during a discussion with Nepalese officials, who pressed for an exchange facility of up to Rs 25,000 per individual in the banned denominations, according to sources at Nepal Rastra Bank, the central bank of Nepal.
During a meeting held yesterday with the Nepal Rastra Bank (NRB) officials, the Indian team offered exchange facility via formal banking channel for up to Rs 4,500 per person in demonetised banknotes.

As per the Indian team proposal, individuals possessing banned Indian bank bill will have to open account at banks and financial institutions and deposit the Indian currency before the NRB sends it to the RBI for verification.
After verification, the RBI would send back the equivalent currency in other denominations, the sources said.
Although, the NRB officials agreed over the modality presented by the RBI, they did not agree over the amount up to which exchange facility is given.

"We asked them to provide exchange facility for up to IRs 25,000 in the banned denominations," said Bhisma Raj Dhungana, head of foreign exchange department at NRB who was present during the meeting.

"We told them it was the Indian government's decision to allow Nepalis to hold up to IRs 25,000 and they should provide exchange facility up to that limit."
The actual stock of banned Indian notes is expected to be much higher because Nepalis were previously allowed to carry Indian bank notes of Rs 500 and Rs 1,000 denominations amounting to Indian Rs 25,000.
Nepal's central bank has been claiming that its financial system has accumulated Indian Rs 33.6 million at various banks and financial institutions.
Soon after the November 8 decision by the Indian government, Nepalese Prime Minister Prachanda had a telephonic talk with Prime Minister Narendra Modi to seek exchange facility for demonitised Indian currencies in circulation in Nepal.