"We have already forwarded the request to RBI," he said. He elaborated that the request was made as Indian notes of higher denomination are already being widely used unofficially in the border markets of Nepal. [break]
Citing the entry of fake notes in the Indian market through different means, RBI had said that it would not accept 500 and 1000 rupee Indian notes from Nepal. Nepali officials had nabbed the home minister of Nagaland state of India in possession of Rs 500 and Rs 1000 notes only a few days back at Tribhuvan International Airport.
Talking to the press, Dr Khatiwada also reiterated that the government would not alter the exchange rate between Nepali and Indian currencies. In this connection, he expressed concern over rumors in the market that have led to a shortage of Indian currency. The buzz has even resulted in the black-marketing of Indian currency in the border areas.
"Talk of exchange rate change is only rumor. We will maintain our peg with the Indian currency at the same rate," he stated.
He also elaborated that the central bank has not studied the possibility of effecting change in the exchange rate between the two currencies nor carried out any research in that connection. “There is no way we can make the change amid the soaring inflation in India and also political instability in Nepal," he said.
The new policy will also deal with rationalizing the number of banking and financial institutions in the country and touch on mergers and acquisitions of banks. “There is a thinking that there are too many banks in Nepal and this has compelled us to discuss how to merge banks if needed,” he stated.
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