Parallel to the unrest and chaos in India after the ban on old 500 and 1000 notes, there is an another obstacle occurred in our neighboring country, Nepal.
The Himalayan country criticizes India saying that the norms on note ban are not yet discussed under Foreign Exchange Management Act (FEMA).
Further claimed that India has not released any notification which made the transactions typical in their country.
Following the lack in information and regulations, Nepal Rastra Bank banned the use of new Rs 500 and Rs 2,000 currency notes marking 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.
Narayan Poudel, Spokesperson for NRB addressed media, he said that the currency will be legalised as soon as India releases the FEMA.
This abruptions in circulation of Indian currency has happened in Nepal earlier too. But, things were tackled after the Prime Minister Modi’s visit to the country. The then government allowed Nepalis to carry up to Rs 25,000 INR (Higher denominations).
However, the earlier ban was lifted, this time the new 500 and 2000 notes were pipped.
Noticing the issue, RBI instantly set up a special task force so that simplifies the process of changing currency for non-Indians, who are carrying the banned Rs 500 and Rs 1000 notes.
Various queries were registered from Indians who are living abroad, though demonetization has shown a quick influence in every neighbouring country, the situation in Nepal is bit strange.