The Nepal government has banned the use of Indian currency notes of Rs 2,000, Rs 500 and Rs 200 denominations in the country, The Kathmandu Post reported on Thursday. The government said Rs 100 notes can be used in the country.
The Indian government had introduced the notes of higher denominations after Rs 500 and Rs 1,000 notes were demonetised in November 2016. Prime Minister Narendra Modi had demonetised the notes in a sudden move, claiming it would end the flow of black money, among other things. Indian currency notes of Rs 500 and Rs 1,000 denominations have been stuck in Nepal since the Indian government withdrew them from circulation.
The government’s spokesperson and Minister for Information and Communications Gokul Prasad Baskota said it has asked people to refrain from carrying Indian notes of higher denominations as the government has not legalised them in the country.
This move will affect Nepali workers in India and Indian tourists. The Nepal government is also making preparations to celebrate 2020 as the “Visit Nepal Year”. An estimated two million people are expected to visit the country in 2020 – a bulk of them from India, according to The Indian Express.
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