KATHMANDU, Sept 6: Nepal Rastra Bank (NRB) has said that general public can exchange new bank notes for the major festivals from October 2.
NRB, the central monetary authority, estimates that new bank notes of small denomination worth Rs 8 billion will be circulated in the market in the eve of festivals like Dashain and Tihar.
Rajendra Pandit, the deputy spokesperson for the NRB, says that one can exchange new bank notes worth Rs 37,000.
The NRB has been distributing new bank notes ahead of Dashain and Tihar festivals every year to meet the rising demand for such notes for the major festivals. The customary practice of offering new notes while receiving Tika during Dashain and Tihar festivals increases demand for new notes.
The central bank will provide exchange facility of two bundles of bank notes of Rs 5, Rs 10, Rs 20, Rs 50 and Rs 100 denominations each to a person. Each bundle contains 100 bills. Last year, the NRB had fixed the limit for exchange of bank notes at Rs 22,000 per person.
“We will distribute fresh banknotes to general public before the festival season. The central bank has been providing the exchange service of fresh notes as the demand of such notes remains very high during the festivals," added Pandit.
People in Kathmandu can exchange new banknotes from the office of Currency Management Department of the NRB in Thapathali, while people outside valley will get such service from the central bank's eight offices across the country.
"Other banks and financial institutions will also provide such banknotes to the public as per their own policy,” added Pandit.
The central bank had circulated a total of Rs 57.86 billion, including the Rs 1,000 bill, in the festival season last year.
Banknotes get damaged mostly during the festival seasons as these notes come into contact of vermilion and water.