Biratnagar, December 18
Nepal’s central bank says it is getting new software to facilitate the exchange of demonitised Indian notes in the country,
Nepal Rastra Bank’s Deputy Governor Shiwakoti, who was speaking to mediapersons in Biratnagar, said the software will also make it impossible for non-Nepalis to exchange demonitised Indian notes.
“We have already sent a proposal to the Reserve Bank of India on the system that will be in place to exchange demonistised notes,” said Shiwakoti. He added that an individual will only get to exchange Rs 25,000 worth of Indian currency.
“If we find that anyone has exchanged more than Rs 25,000, we will seize the excess amount,” he said.
Rastra Bank will provide a form for anyone who wishes to exchange Indian currency, and on the form the person concerned needs to provide his/her citizenship number and phone number, said Shiwakoti.
According to unofficial figures, Indian currency worth over NRs 3.36 billion is believed to be in Nepal. Around NRs Rs 2.52 billion of worth of Indian currency in Rs 500 and 1,000 denominations is believed to be in the banking sector and around NRs 810 with travel agencies and other businesses.
An official with the central bank recently told Onlinekhabar that the Indian government is less concerned about the implications of demonitisation on the neighbouring countries. This is a secondary issue for them as their focus is on mitigating the problems brought about by the announcement, he said.
Nepal’s Prime Minister Pushpa Kamal Dahal and his Indian counterpart have also discussed the issue over the phone, so has Nepal’s Finance Minister Krishna Bahadur Mahara and his India’s Arun Jaitley. India has assured it will provide exchange facility, but it has not provided any details.
On November 8, India’s Prime Minister Narendra Modi in an unscheduled live televised address at 20:15 declared that use of all Rs 500 and Rs 1,000 banknotes of the Mahatma Gandhi Series would be invalid from midnight of the same day and announced the issuance of new Rs 500 and Rs 2,000bank notes of the Mahatma Gandhi New Series in exchange for the old banknotes.
The government claimed that demonetisation was an effort to stop counterfeiting of the current banknotes allegedly used for funding terrorism, as well as a crack down on black money in the country. The move was described as an effort to reduce corruption, the use of drugs, and smuggling.
The Indian government’s deadline to exchange the demonitised notes elapses on December 30, 2016. Chances are that the Indian government would allow Nepalis to deposit their notes in their bank accounts in Nepal after bearers present their documents to prove the source of the currency. But the window period will be short.
