‘500-Denominated banknote not illegal, but not exchangeable’

Published On: November 26, 2016 10:13 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 26: The newly-circulated Indian banknote will be illegal to exchange in Nepal until the Reserve Bank of India (RBI), the central bank of India, authorizes its use in Nepal, according to NRB officials.

However, having the newly-introduced Rs 500-denominated banknotes would not be illegal, just not exchangeable. However, newly-circulated Rs 1,000 Indian notes have been prohibited.

“The newly-circulated Rs 1,000-denominated Indian banknote is illegal to carry or possess in Nepal until RBI issues and corresponds us the new regime through its new Foreign Exchange Management Act notification,” Rajendra Pandit, deputy spokesperson of NRB, said.

“However, our understanding is that it would not be illegal for a Nepali here to carry the new Rs 500-denominated banknotes to up to 25,000 Indian rupees as we have already allowed to do so with the Rs 500 banknotes,” he added.

“But, these will not be exchanged since we have banned the exchange of Rs 1,000 and Rs 500-denominated banknotes,” he said.

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