Not only India, but even Nepal has been hit by demonetization since it is the only country which widely uses Indian Currency.
Today, Nepal Rastra Bank banned the use of new Rs 500 and Rs 2,000 currency notes and termed them as “Illegal and Unauthorized”. RBI recently issued these notes after ban on old Rs 500 and Rs 1,000, but NRB refused to accept them.
Nepal Rastra Bank stated that RBI hasn’t issued a new notification about these new notes under the Foreign Exchange Management Act and till then, it won’t allow the exchange or use of these new notes.
Spokesperson for NRB, Narayan Poudel stated that only if RBI issues FEMA notification, they will consider these new notes as legal. Reports say that India would very soon issue this FEMA notification, thereby allowing people in India and Nepal to possess these new notes.
With FEMA notification from the RBI, citizens of foreign countries would be allowed to hold a decided amount of Indian currency.
Earlier, there was a ban in Nepal against usage of Rs 500 & Rs 1000 notes, but this ban was lifted after PM Modi visited Nepal. Last year, Nepal had allowed people to carry up to Rs 25,000 INR (Higher denominations)
As of now, the RBI has set up a special task force so that the process of changing currency for non-Indians, who possess banned Rs 500 and Rs 1000 notes, becomes easier.
It seems this demonetization has created a lot of chaos, don’t you think so? Do share your views in our comments section below…
