Nepalis can exchange 4,500 Indian rupees

A visiting team of Reserve Bank of India on Sunday hinted it would allow Nepali nationals to exchange banned Indian currency of up to 4,500 rupees per person.

The Indian proposal has made Nepali side nervous as India had earlier allowed carrying of 25,000 rupees per Nepali citizens.

A delegation led by RBI executive director Dipali Pant Joshi held talks with deputy governor of Nepal Rastra Bank Chintamani Siwakoti in Kathmandu and gave a one-week window to complete the exchange facilities.

If Indian side insists on the decision, many Nepalis who have been holding banned Indian banknotes of 500 and 1000 denominations will suffer.

The next meeting is on Monday, said officials at Nepal Rastra Bank, the central bank of Nepal.

Nepali side conveyed that it was impossible to exchange banned Indian bills within a week as Nepal is yet to take an inventory of such notes possessed by Nepalis.

The RBI team said it was ready to exchange Indian notes in Nepali banking and financial institutions immediately, but bills held by individuals should be exchanged through the bankingsystem. Indiahadexpressed fears about Nepal becoming a “clearing house” to channel illegally amassed banknotes into Indian financial system. HTC