Nepal bans most of Indian currency

  • IndiaGlitz, [Saturday,December 15 2018]

The Nepal government has issued an executive order banning Indian currency notes of above Rs 100 in the country. So, Indian notes of these denominations won't be allowed in Nepal: Rs 2,000, Rs 500 and Rs 200.

This move is relevant because lakhs of Indians visit the Himalayan country every year as tourists. Also, it will have a bearing on Nepalis working in India, as they can't send the most-circulated currencies back home to their families.

Since India is Nepal's largest trading partner, the latest decision is billed to have a negative influence on India's trade. This is being seen as Nepal's friendly gesture towards China.

A few years ago, the Indian government reportedly told the Nepalese government that counterfeit Indian currency is in wide use in Nepal. The demonetization of Indian currency could address the issue.