Monday May 21, 2018
Home World Exchange of u...

Exchange of up to Rs 4,500 in banned Indian Currency Notes to each Nepali national: RBI

The Indian proposal has sent waves of nervousness among the Nepali public as India had earlier allowed Nepali citizens to possess up to Indian Rs 25,000 each

0
//
172
Indian currency. Pixabay
Republish
Reprint

Kathmandu, March 26, 2017: The Reserve Bank of India (RBI) will allow an exchange of up to Rs 4,500 in banned Indian currency notes to each Nepali national, a visiting team of the Indian central bank in Kathmandu hinted on Sunday.

The Indian proposal has sent waves of nervousness among the Nepali public as India had earlier allowed Nepali citizens to possess up to Indian Rs 25,000 each.

NewsGram brings to you current foreign news from all over the world.

An RBI team led by Dipali Pant Joshi, executive director, RBI, held talks with a Nepali team, led by Nepal Rastra Bank (NRB) Deputy Governor Chintamani Siwakoti, in Kathmandu and offered to provide exchange facilities up to INR 4,500 in banned Indian currency notes and gave one week’s window to complete the exchange formalities.

However, the Nepali side has been pushing to arrange facilities up to Indian Rs 25,000 which was earlier allowed to a Nepali citizen to hold legally.

If the Indian side remains adamant over the decision, many people who possess banned Indian rupee notes would suffer badly.

NewsGram brings to you top news around the world today.

After both sides stated their respective positions, the next meeting has been scheduled for Monday, said officials at Nepal Rastra Bank, the central bank of Nepal.

Similarly, the Nepali side has conveyed to the RBI team that it is also impossible to exchange banned Indian notes within a week as the Nepali side is yet to conduct inventory of banned Indian bills possessed by Nepalis.

In response, the RBI team said it was ready to exchange Indian notes held with Nepali banking and financial institutions immediately but currency notes held by individuals should be exchanged through the banking system.

The Indian delegation arrived in Kathmandu on Saturday to hold discussions on extending exchange facilities to Nepalis who are holding banned Indian banknotes of Rs 500 and Rs 1,000 denominations.

Check out NewsGram for latest international news updates.

This is the second time that the Indian team has visited Nepal to hold talks on allowing exchange facilities to Nepalis holding demonetised Indian bank notes.

Earlier, the Indian team had expressed fears about Nepal being used as a “clearing house” to channel illegally amassed banknotes into the Indian financial system.

The Indian government’s November 8 move to demonetise Rs 500 and 1,000 bank notes has caused inconvenience to many Nepalis, especially daily-wage earners and labourers working in India, and those visiting the neighbouring country for medical treatment, studies and purchasing goods from Indian markets in border areas.

Nepal’s central bank has been claiming that its financial system is holding Indian Rs 33.6 million at various banks and financial institutions besides NRB itself.

But the actual stock of banned Indian notes is expected to be much higher because Nepalis were previously allowed to carry Indian bank notes of Rs 500 and Rs 1,000 denominations amounting to Indian Rs 25,000.

Also, those residing in areas bordering India usually keep Indian notes of higher denominations as they have to visit Indian markets frequently to buy essential commodities. (IANS)

Click here for reuse options!
Copyright 2017 NewsGram

Next Story

To Review The Existing Framework of MIIs, SEBI Puts Forward Higher Regulatory Requirement

Currently, stock exchanges, depositories and clearing corporations are collectively referred to as securities MIIs.

0
//
34
According to SEBI, the changes have been proposed by its committee under the Chairmanship of R. Gandhi, Former Deputy Governor, Reserve Bank of India, to review the existing framework of MIIs (Market Infrastructure Institutions).
SEBI Building Mumbai, Wikimedia commons

The Securities and Exchange Board of India (SEBI) on Friday proposed higher regulatory requirement in terms of ownership, governance and certain additional standards of essential accountability “Credit Rating Agencies, Registrar to an Issue and Share Transfer Agents and Debenture Trustees”.

According to SEBI, the changes have been proposed by its committee under the Chairmanship of R. Gandhi, Former Deputy Governor, Reserve Bank of India, to review the existing framework of MIIs (Market Infrastructure Institutions).

Currently, stock exchanges, depositories and clearing corporations are collectively referred to as securities MIIs.
Representational Image, Pixabay

Currently, stock exchanges, depositories and clearing corporations are collectively referred to as securities MIIs.

“The committee, based on the presentations made by the market intermediaries, felt that these intermediaries do not meet majority of the criteria of MIIs,” the committee’s report said.

Also Read: Apple Leads Global Tablet Market, Samsung Second

“However, certain characteristics such as size, concentration, high dependence of investors on their services, market share, etc. make them significantly important.”

Accordingly, the regulator has called for public comments till May 19 on the recommendations made by the committee. (IANS)