Indian currency is widely accepted in Nepal, where many people have been facing problems in exchanging the old Rs 500 and Rs 1,000 notes.(Karun Sharma/ HT Photo)
Indian currency is widely accepted in Nepal, where many people have been facing problems in exchanging the old Rs 500 and Rs 1,000 notes.(Karun Sharma/ HT Photo)

Nepal bans new Indian Rs 500 and Rs 2,000 notes, waits for RBI notification

At a time when Nepalese citizens are facing problems in exchanging withdrawn Indian notes of Rs 500 and Rs 1,000 denomination, the country’s central bank on Thursday banned the exchange of India’s new Rs 500 and Rs 2,000 currency notes.
By HT Correspondent | Hindustan Times, Kathmandu
UPDATED ON NOV 24, 2016 08:29 PM IST

At a time when Nepalese citizens are facing problems in exchanging withdrawn Indian notes of Rs 500 and Rs 1,000 denomination, the country’s central bank on Thursday banned the exchange of India’s new Rs 500 and Rs 2,000 currency notes.

The Nepal Rastra Bank said the new Indian notes cannot be exchanged until the Reserve Bank of India (RBI) issues a new notification under the Foreign Exchange Management Act. Such a notification allows citizens of foreign countries to hold a certain amount in Indian currency, officials said.

Ramu Poudel, the Nepal Rastra Bank’s chief for the eastern region, told members of the business community in Biratnagar that the new Indian rupees are considered “ illegal” and cannot be exchanged until new arrangements are made by the Indian side. 

“As of now, our understanding with the Reserve Bank of India is that a Nepali citizen can hold up to Indian Rs 25,000 (in the) old Rs 500 and Rs 1,000 notes. Even the fate of those old notes is uncertain, how can these new Indian notes coming into the market be considered as legal?" Poudel said.

Indian currency is widely accepted in Nepal, where many people have been facing problems in exchanging the old Rs 500 and Rs 1,000 notes. Due to the open border between the two countries, the new Indian notes too have entered areas along the border with India.

Nepal and India are yet to reach an agreement on modalities for the exchange of the withdrawn notes held by Nepalese citizens. Poudel said the two central banks are in close contacts to address this issue but no way out has been found as yet.

The Nepal Rastra Bank set up a task force to prepare guidelines for exchanging the withdrawn Indian currency notes. It handed over some guidelines to the Indian side through the Indian embassy of Kathmandu. Officials said the Nepalese side had suggested that authorities could collect the withdrawn Rs 500 and Rs 1,000 notes from Nepalese citizens and send them to the RBI for verification and exchange into Nepali currency.

Nepal’s central bank has also made it clear it will not provide over-the-counter exchange facilities to Nepalese citizens holding the withdrawn Indian currency because it lacks the expertise and technology to identify counterfeit currency.

Experts said India is cautious about providing exchange facilities to citizens of a foreign country as it fears it could be misused as “ a clearing house” to convert counterfeit currency.

The Nepali side also suggested that Nepalese citizens would have to open accounts at banks and financial institutions and deposit the demonetised Indian currency to receive the equivalent amount directly in their accounts.

Prime Minister Pushpa Kamal Dahal “Prachanda” and finance minister Krishna Bahadur Mahara have already urged their Indian counterparts to arrange exchange  facilities for Nepalese citizens.

The Nepal Rastra Bank has said the country’s financial system holds Rs 500 and Rs 1,000 notes worth Indian Rs 33.6 million. This amount includes cash in bank vaults, financial institutions and the central bank. However, the actual amount is believed to be much higher.

SHARE THIS ARTICLE ON
Close
Activists appeal for a $15 minimum wage near the Capitol in Washington, Thursday, Feb. 25, 2021.(AP)
Activists appeal for a $15 minimum wage near the Capitol in Washington, Thursday, Feb. 25, 2021.(AP)

Majority of Americans support $15 minimum wage, poll shows

Reuters, Washington
PUBLISHED ON FEB 25, 2021 10:43 PM IST
Democrats are trying to pass the progressive policy without Republican votes through a manoeuvre known as reconciliation.
Close
Vials are seen on a packing line of the factory of British pharmaceutical company GlaxoSmithKline (GSK) in Wavre on February 8, 2021 where the Covid-19 CureVac vaccine will be produced.(AFP)
Vials are seen on a packing line of the factory of British pharmaceutical company GlaxoSmithKline (GSK) in Wavre on February 8, 2021 where the Covid-19 CureVac vaccine will be produced.(AFP)

CureVac says preliminary trials show Covid-19 vaccine effective against variants

Reuters
PUBLISHED ON FEB 25, 2021 10:28 PM IST
CureVac chief Haas told EU lawmakers that the results of the preliminary trials on the vaccine's effects on variants would be published soon.
Close
Britain's Prime Minister Boris Johnson(Reuters)
Britain's Prime Minister Boris Johnson(Reuters)

UK work visas plunged in pandemic as investors stayed away

Bloomberg
PUBLISHED ON FEB 25, 2021 10:10 PM IST
The figures released by the Home Office coincided with the worst economic slump in three centuries and a surge in unemployment, with lockdowns to control the virus shutting vast sections of the economy.
Close
File photo of Pakistan's Prime Minister Imran Khan.(AFP)
File photo of Pakistan's Prime Minister Imran Khan.(AFP)

Pakistan stays in FATF ‘grey list’, given June deadline to implement action plan

By hindustantimes.com | Edited by Amit Chaturvedi
UPDATED ON FEB 25, 2021 10:23 PM IST
Pakistan has been on the FATF's grey list since June 2018 and the government was given a final warning in February 2020 to complete the 27 action points.
Close
FILE - This June 7, 2019 file photo released by Dubai Police Headquarters shows the aftermath of a bus crash, in Dubai, United Arab Emirates. State-linked media in the UAE says a Dubai court has reduced the sentence of the Omani bus driver who smashed into a warning sign off a highway in 2019, killing 17 people on board. The appeals court reduced his seven-year sentence followed by deportation to just one year without deportation. (Dubai Police HQ via AP, File)(AP)
FILE - This June 7, 2019 file photo released by Dubai Police Headquarters shows the aftermath of a bus crash, in Dubai, United Arab Emirates. State-linked media in the UAE says a Dubai court has reduced the sentence of the Omani bus driver who smashed into a warning sign off a highway in 2019, killing 17 people on board. The appeals court reduced his seven-year sentence followed by deportation to just one year without deportation. (Dubai Police HQ via AP, File)(AP)

Sentence reduced for driver in fatal Dubai tour bus crash that killed 12 Indians

Posted by Kunal Gaurav | AP, Dubai
PUBLISHED ON FEB 25, 2021 10:02 PM IST
  • Among the 31 people on the ill-fated bus were also citizens of Bangladesh, Germany and the Philippines.
Close
This wind-carved rock seen in the first 360-degree panorama taken by the Mastcam-Z instrument shows just how much detail is captured by the camera systems.(NASA/JPL-Caltech/MSSS/ASU / AFP)
This wind-carved rock seen in the first 360-degree panorama taken by the Mastcam-Z instrument shows just how much detail is captured by the camera systems.(NASA/JPL-Caltech/MSSS/ASU / AFP)

High-definition, zoomable view of Mars captured by Nasa's Perseverance rover

By hindustantimes.com | Edited by Kunal Gaurav, New Delhi
PUBLISHED ON FEB 25, 2021 09:17 PM IST
  • The US space agency on Wednesday released the first 360-degree panorama taken by Mastcam-Z, a dual-camera system equipped with a zoom function.
Close
A pedestrian wearing her facemask and holding a cup of coffee walks past a closed sign hanging on the door of a small business in Los Angeles, California.(AFP)
A pedestrian wearing her facemask and holding a cup of coffee walks past a closed sign hanging on the door of a small business in Los Angeles, California.(AFP)

US government revises fourth quarter GDP up slightly to 4.1%

PTI
PUBLISHED ON FEB 25, 2021 09:16 PM IST
Gross domestic product — the broadest measure of economic health — grew at an annual rate of 4.1% in the fourth quarter, up from an initial estimate of 4% growth, the Commerce Department reported Thursday.
Close
A server carries food for a customer at Ye Olde King's Head in Santa Monica, California. (AP)
A server carries food for a customer at Ye Olde King's Head in Santa Monica, California. (AP)

US jobless claims fall to 730,000 but layoffs remain high

AP
PUBLISHED ON FEB 25, 2021 09:08 PM IST
The latest figures come as the job market has made scant progress in the past three months. Hiring averaged just 29,000 a month from November through January.
Close
FILE PHOTO: An electrical substation is seen after winter weather caused electricity blackouts in Houston, Texas, U.S. February 20, 2021. REUTERS/Go Nakamura/File Photo(REUTERS)
FILE PHOTO: An electrical substation is seen after winter weather caused electricity blackouts in Houston, Texas, U.S. February 20, 2021. REUTERS/Go Nakamura/File Photo(REUTERS)

Texas lawmakers kick off investigation into deadly power blackout

Reuters
PUBLISHED ON FEB 25, 2021 08:48 PM IST
Up to 48% of the state's power generation was offline at times last week. Utilities were ordered to cut power to prevent a larger catastrophe, Bill Magness, chief executive of the Electric Reliability Council of Texas (ERCOT), the state's grid operator, said on Wednesday.
Close
FILE - In this Sept. 24, 2020, file photo, a worker inspects syringes of a vaccine for COVID-19 produced by Sinovac at its factory in Beijing. China approved two new more COVID-19 vaccines for wider use Thursday, adding to its growing arsenal of shots: one from CanSino Biologics, and a second one from state-owned Sinopharm. (AP Photo/Ng Han Guan, File)(AP)
FILE - In this Sept. 24, 2020, file photo, a worker inspects syringes of a vaccine for COVID-19 produced by Sinovac at its factory in Beijing. China approved two new more COVID-19 vaccines for wider use Thursday, adding to its growing arsenal of shots: one from CanSino Biologics, and a second one from state-owned Sinopharm. (AP Photo/Ng Han Guan, File)(AP)

China approves two more domestic Covid-19 vaccines, increasing number to 4

Reuters
PUBLISHED ON FEB 25, 2021 08:47 PM IST
The two newly approved vaccines are made by CanSino Biologics Inc and Wuhan Institute of Biological Products, an affiliate of China National Pharmaceutical Group (Sinopharm).
Close
Fauci says the vaccines distributed in the US “clearly can take care of that particular strain.”(AP)
Fauci says the vaccines distributed in the US “clearly can take care of that particular strain.”(AP)

Anthony Fauci asks Americans to take whatever vaccine is available

AP, Washington
PUBLISHED ON FEB 25, 2021 07:50 PM IST
  • Dr Anthony Fauci warns people not to hold off on getting the Johnson & Johnson vaccine while waiting for the slightly more effective Pfizer or Moderna shots.
Close
In this photo released by China's Xinhua News Agency, attendees applaud during a ceremony to mark the official end of extreme poverty in China held at the Great Hall of the People in Beijing,(AP)
In this photo released by China's Xinhua News Agency, attendees applaud during a ceremony to mark the official end of extreme poverty in China held at the Great Hall of the People in Beijing,(AP)

China celebrates official end of extreme poverty, lauds Xi

AP
PUBLISHED ON FEB 25, 2021 07:16 PM IST
The propaganda apparatus has been linking national successes to Xi, including fighting the coronavirus, China’s rise as a technology creator and December’s successful lunar mission to bring back moon rocks.
Close
Bahrain Crown Prince Salman bin Hamad bin Isa Al Khalifa attends an event in Manama, Bahrain.(AP)
Bahrain Crown Prince Salman bin Hamad bin Isa Al Khalifa attends an event in Manama, Bahrain.(AP)

Israel, Bahrain leaders discuss Iran, possible vaccine plant

Reuters
PUBLISHED ON FEB 25, 2021 07:02 PM IST
Bahrain and the United Arab Emirates formalised ties with Israel on Sept. 15 in part over shared concerns about Iran, in a deal forged by former U.S. President Donald Trump.
Close
Sheikha Latifa bint Mohammed Al Maktoum, daughter of Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum(AP)
Sheikha Latifa bint Mohammed Al Maktoum, daughter of Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum(AP)

Dubai's Latifa urged UK police to reopen sister's kidnapping case: Report

Posted by Kunal Gaurav | Reuters
PUBLISHED ON FEB 25, 2021 06:47 PM IST
Latifa reportedly asked Cambridgeshire Police to refocus on the case of her sister Shamsa, now 39, who was captured aged 18 and has not been seen in public since.
Close
A second official, who also spoke on condition of anonymity, said the Commission was worried about "ghost" vaccines.(AP)
A second official, who also spoke on condition of anonymity, said the Commission was worried about "ghost" vaccines.(AP)

Fraudsters offer 400 million 'ghost' Covid vaccines in EU: Officials

Reuters
PUBLISHED ON FEB 25, 2021 06:29 PM IST
Two officials with the bloc's executive European Commission estimated that around 400 million doses of "ghost" vaccine had been offered by fraudsters at a price of up to 3 billion euros ($3.67 billion).
Close
SHARE
Story Saved
OPEN APP