RBI decides to limit exchange facilities for Nepal nationals to Rs 4,500

LONDON: The Reserve Bank of India has decided to limit the exchange facility for scrapped currency notes held by Nepalese nationals to Rs 4,500, raising fears about a further delay in replacing the now-useless notes of Rs 500 and Rs 1,000 denomination.

Officials of the Nepal Rastra Bank (NRB) had demanded that the ceiling be raised to Rs 25,000 per individual but this was rejected by the RBI team, which held talks with Nepalese officials here on Sunday and Monday, sources said. The team returned to India on Tuesday.

Both sides took up the issue on Monday but could not bridge their differences as they remained firm on their respective positions.

“We told them it was the Indian government’s decision to allow Nepalis to hold up to Rs 25,000 in cash and asked them to raise the ceiling. But they didn’t agree to our demand,” NRB deputy governor Chintamani Siwakoti said.

The RBI officials told the Nepalese side that they would take up Kathmandu’s demand with the highest authorities in New Delhi.