India’s neighbouring country Nepal has banned new Rs.500 and Rs.2000 currency notes terming them as ‘illegal and unauthorised’.
On November 24, Nepal Rastra Bank (NRB) said that the new currency notes won’t be considered legal in their country.
According to reports, Nepal will consider India’s new currency notes legal only when the country issues a notification as per the Foreign Exchange Management Act (FEMA).
NRB spokesperson Narayan Poudel told Onlinekhabar.com.that these notes will be legal in Nepal only when India issues a FEMA notification. It is said that India is likely to issue a FEMA notification, allowing people in Nepal and India to possess certain amount of Indian currency.
The new currency notes were issued by Narendra Modi-led NDA government after it announced that previous Rs. 500 and Rs. 1000 won’t be consider as legal tenders. The government said that the move was taken curb back floating in the market. However, due to lack of proper planning, the move has created lot of chaos in the country with many facing cash crunch.