Nepal Rastra Bank on Thursday banned the use of India’s new currency notes of Rs 500 and Rs 2,000. The currencies which were recently issued in India by the Reserve Bank o India after demonetising Rs.500 and Rs.1000 old notes were termed as “unauthorised and illegal”.
NRB spokesperson Narayan Poudel said these new currency notes are not yet legal in Nepal. Nepal is the country where Indians can travel without a passport and Indian currency is accepted in most of the places. Because of these reasons, Nepal has always attracted lot of Indian tourists.
Poudel said these notes will be legal in Nepal only when India issues a FEMA notification as per the Foreign Exchange Management Act. Considering the fact that lot of Indians travel to Nepal every year, India is likely to issue a FEMA notification, allowing people in Nepal and India to possess certain amount of Indian currency.
The ban against the previous higher denominations that existed in Nepal were old Rs.500 and Rs.1000 notes which was lifted after PM Narendra Modi visited Nepal.
Nepal last year allowed people to carry Indian Rupees of higher denominations up to Indian Rs 25,000.