Post demonetisation, Nepal wants early resolution of cash crunch | business-news | Hindustan Times
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Post demonetisation, Nepal wants early resolution of cash crunch

Nepal today said its people were facing a lot of hardship due to India’s demonetisation decision as high-value India currency notes were in large circulation and failure to resolve the problem soon may erode their faith in Indian government’s assurances.

business Updated: Jan 13, 2017 16:20 IST
PTI
Indians stand in a queue to deposit discontinued notes in a bank in Samba district of Jammu and Kashmir after the government yanked most of its currency bills from circulation without warning.
Indians stand in a queue to deposit discontinued notes in a bank in Samba district of Jammu and Kashmir after the government yanked most of its currency bills from circulation without warning.(AP)

Nepal today said its people were facing a lot of hardship due to India’s demonetisation decision as high-value India currency notes were in large circulation and failure to resolve the problem soon may erode their faith in Indian government’s assurances.

A Nepalese delegation comprising top officials of Nepal’s Finance and Foreign ministries as well as Nepal Rastra Bank (NRB) is currently holding talks with RBI and concerned Indian agencies to thrash out a solution to the problem, Nepalese Ambassador Deep Kumar Upadhyay said.

“People in Nepal are facing lot of difficulties. They are worried. I have pursued the issue at all levels including at the diplomatic level. I hope it will be solved soon.

“I am requesting the Government of India, please resolve it as early as possible. Otherwise people may lose their faith in Government of Nepal and naturally in Government of India too,” Upadhyay said during an interaction at the Foreign Correspondents Club here.

The Nepalese delegation, Upadhyay said, is being led by Deputy Governor of Nepal Rastra Bank. He hoped that both sides will be able to come to a positive conclusion at the earliest.

Indian currency is widely accepted in Nepal and Bhutan.

Assuring that the issue will be resolved soon, the Indian government had set up a task force to facilitate exchange of currency notes in Nepal.

Nepal last year allowed people to carry Indian rupees of higher denominations up to Indian Rs 25,000.

A ban was in effect in Nepal till last year against the use of Rs 500 and Rs 1,000 denominations notes. Authorities had lifted this ban after the visit of Prime Minister Narendra Modi to Nepal.

Asked about the proposed rail link between China and Nepal, the envoy said his land locked country has the right to access other possible routes adding Indo-Nepal engagement is much deeper and it should not be compared with Kathmandu’s other ties.

On reports that China was keen to have a railway link with India through Nepal, Upadhyay said there has been huge thrust on Indo-Nepal train connectivity and if such links are extended to China, it will boost trade and benefit the entire region.

“We should be proud of our bilateral engagement (Indo-Nepal). Engagement with India cannot be compared with any other country. A peaceful and stable Nepal will benefit both India and China. If there is a conflict, both the countries will suffer,” he said.