The central bank of Nepal has banned the use of Indian currency notes of Rs. 2,000, 500 and 200 denominations, a move that could impact tourists from India that are visiting the country where the Indian currency is used widely.
It was on Sunday that Nepal Rastra Bank issued a circular that prohibited the Nepali travelers, banks and financial institutions from carrying, holding and trading Indian bank notes higher than 100 rupees note, reported the Kathmandu Post.
The central bank in its circular said that the denominations of Rs. 200, 500 and 2000 cannot be carried and used for trading.
As per the new regulation, the citizens of Nepal cannot carry these denominations to countries other than India.
In the same manner, the citizens of Nepal, are not permitted to bring these notes from other countries. Indian notes of Rs. 100 or below, however, are permitted for conversion and trading, states the circular of the bank.
It was on the 13th December last year that the Cabinet had called the shots to publish the notification in the Nepal Gazette as to not to permit the notes of the Indian currency above the denominations of Rs. 100 in Nepal.
On the other hand, the ban has not been taken all that well by the entrepreneurs and traders stating it would hurt the growing tourism of the country at a time when the government has declared ‘Visit Nepal’ campaign with a target to attract at least 2 million tourists in the year 2020.
Since a majority of Indians come to Nepal over land from bordering towns, it is difficult for them to convert their currency to Dollar or Euro, they said.