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RBI refuses to exchange Indian currency notes deposited in Nepal

Sakshi Chaturvedi

Sakshi ChaturvediBy Sakshi Chaturvedi

Published on 15 Nov 2016 8:07 AM GMT

RBI refuses to exchange Indian currency notes deposited in Nepal
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Mumbai: The Reserve Bank of India has not entertained the request of its counterpart in Nepal to exchange the high denomination Indian currency notes which have been deposited in the bank by Indians.

The logic given by the RBI for the refusal is that it has no powers to exchange the Indian notes deposited in another country.

Nepal's central bank, the Nepal Rashtra Bank, had made a written request in this regard. The notes for which exchange demand has been made are of the value of Rs 500 and Rs 1000 which have been cancelled by the Indian government.

ALSO READ: RBI launches Rs. 500 currency notes in Delhi, Bhopal

The RBI, according to official sources, has also made some queries. For instance, it has said that it had provided Rs 3.5 crores to Nepal's central bank but the country has Indian currencies to the tune of Rs 10,000 crores in the market.

Nepal's casinos which are the main attraction of tourists were closed as soon as the high denomination notes were cancelled by the Indian government, the reason being that Indian currencies are used in these betting centres there.

The central Indian bank has sent the request letter to the finance ministry for further action.

ALSO READ: Demonetisation: Even RBI scrambles for cash

Sakshi Chaturvedi

Sakshi Chaturvedi

A journalist, presently working as a Sub-Editor at newstrack.com.

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