Demonetised notes to top agenda during parleys

KATHMANDU: Nepal’s Prime Minister KP Sharma Oli will raise the issue of demonetised Indian bank notes worth an estimated $108 million held by Nepalese financial institutions and individuals at talks with his counterpart Narendra Modi during his visit beginning on Friday.

The issue has been pending for 17 months since India withdrew old currency notes of ₹500 and ₹1,000 denominations and issued fresh ones.

An official study has estimated that banned notes worth more than ₹7 billion (about $108 million) are held by banks, financial institutions and individuals in Nepal. Authorities have been waiting for Indian approval for swapping these notes. Oli, while addressing Parliament about his India visit late on Tuesday, said the issue of demonetised Indian notes would be on his agenda. “The Indian demonetisation has hurt Nepali nationals. I will raise this in my meetings with Indian leaders and request them to resolve the issue,” he said.

Narayan Prasad Poudel, the spokesperson for Nepal’s central bank, said Oli is expected to raise the issue with his Indian counterpart but the outcome is not sure. Details about Indian notes held by banks and financial institutions and progress made in negotiations with India have been provided to the finance ministry, he said. “Officials of the two central banks held talks to pave the way for swapping the banned notes but no progress has been made so far. The Indian government had earlier assured Nepal it would exchange the invalid notes but the issue has remained unresolved for almost 17 months,” Poudel said.