Demonetisation of  Indian currencies has led to closure of casinos in  Nepal

Samarth Srivastava
Published on: 9 Nov 2016 1:00 PM GMT
Demonetisation of  Indian currencies has led to closure of casinos in  Nepal
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Demonetisation of  Indian currencies has led to closure of casinos in Nepal

Kathmandu: Invalidation of currency notes of high denominations has created some practical problems in India but for the neighbouring Nepal it was the end of business in casinos. The city known largely for casinos had to shut them after midnight as Indian currency notes of high denominations which are only used there have been reduced to mere papers.

Currency notes of rupees 500 and 1000 have been withdrawn and new notes of value of rupees 500 will be available only from Thursday. Rupees 1000 notes have been totally withdrawn. The closure is likely to continue till the time some alternative is found out or the new notes arrive. Ten per cent employees of casinos here are Indians.

Scrapping of high currency notes had taken place in India 38 years ago when late Morarji Desai was the Prime Minister. Then notes of 10,000 rupees value were also in circulation which were withdrawn following the policy change.

The purpose was the same: to curb corruption and black money menace. But it had not made much impact for one main reason: high value notes were held by a small percentage of the population. Commodity and real estate prices were low, unlike the situation now.

The present policy change is likely to hit the real estate business hard. The sector is already facing a demand shortage. Election in five states including Uttar Pradesh will also be impacted.

Also read:

Rs 500, Rs 1000 notes deemed illegal from midnight: PM Modi

How to replace your old Rs. 500 and Rs. 1000 currency notes?

Samarth Srivastava

Samarth Srivastava

Employed as sub-editor at newstrack.com. A learner, who loves covering sports, entertainment and defence kind of stuff.

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