Nepali Prime Minister to press India to exchange banned currency

Vastavam web: Nepali Prime Minister K.P. Sharma Oli will press India to exchange millions of dollars held in Nepal in banned high-value Indian bank notes during a visit this week to improve ties with its large southern neighbour.Nepal and India have yet to agree on how to exchange old Indian bank notes estimated to be worth $146 million held by individuals and informal sectors after India’s shock announcement in 2016 to ban 500 and 1,000 rupee bills.

“The Indian demonetisation has hurt Nepali nationals. I will raise this in my meetings with Indian leaders and request them to resolve the issue,” Oli told Nepali parliament late on Tuesday.Oli will meet Indian Prime Minister Narendra Modi and President Ram Nath Kovind and other officials during the visit starting on Friday.

Central Nepal Rastra Bank (NRB) officials say the Reserve Bank of India (RBI) verbally agreed to allow every Nepali national to exchange up to 4,500 rupees worth of scrapped Indian bank notes in a meeting in March last year.“But nothing has been communicated to us formally so far,” NRB Deputy Governor Chinta Mani Shivakoti told.