Nepal has asked the RBI to declare newly circulated Indian currency notes of denominations higher than Rs 100 legal tender in the country, according to media report on Sunday. Before the demonetisation of Rs 500 and Rs 1,000 bank notes in November 2016, the RBI had issued a FEMA notification allowing Nepali citizens to carry Rs 25,000 worth of such bank notes. After the demonetisation of Rs 500 and Rs 1,000 Indian currency notes, circulation of new bank notes of denominations Rs 200, Rs 500 and Rs 2,000 was started by the Indian government. But the actual stock of banned Indian bank notes is expected to be much more because Nepalis were previously allowed to carry Rs 500 and Rs 1,000 Indian bank notes worth up to Rs 25,000. Also, those residing in areas bordering India usually stash Indian notes of larger denominations as they have to go to Indian markets frequently to buy goods.

Source: Hindustan Times January 06, 2019 11:35 UTC