Nepal’s central bank, Nepal Rastra Bank has banned the exchange of Indian currency notes in the denomination of Rs 2000, Rs 500, and Rs 200. However, Indian currency notes in the denomination of Rs 100 or below, are allowed for trading and exchange purposes.
The latest move of the central bank is expected to affect the Indian tourists who visit the tiny Himalayan country in large number every year, where Indian currency is widely used.
According to a circular issued by Nepal Rastra Bank on Sunday (20), Nepali tourists, banks, and other financial firms have been asked not to carry Indian currency notes in the denomination higher than Rs 100, Nepal’s Kathmandu Post reported.
The latest circular also states that the Nepalis cannot carry the barred denominations to the nations other than India. The Nepali citizens are also barred from bringing such currency notes from countries other than India.
Nepal’s cabinet in December 2018 had decided to pass a notification in Nepal Gazette not to permit its citizens to carry Indian currency notes in the denomination of Rs 200, Rs 500, and Rs 2000 in Nepal.
The people who engaged in travel business have criticised the latest ban on Indian currency notes in the Himalayan state and added that it would spoil country’s growing tourism sector amid Nepal government’s ‘Visit Nepal’ campaign with an aim to attract two million tourists in 2020.
The traders have also added that the Indian tourists who reach Nepal overland from neighbouring Indian towns could find it difficult to convert their money into other currencies.
According to overland Indian visitors’ survey, 1.2 million Indians reached Nepal through the surface route while 160,132 travelled via air. The average length of stay of Indian visitors coming overland was 5.8 days. Average expenditure per visitor was as much as Rs 11,310, the daily said.