Demonetisation: Nepal PM Prachanda dials Modi, seeks help

[Hindustani78]

http://zeenews.india.com/news/india...-prachanda-dials-modi-seeks-help_1949897.html
Last Updated: Tuesday, November 15, 2016 - 14:48

Kathmandu: Nepal Premier Prachanda has telephoned Prime Minister Narendra Modi and sought an arrangement so that Nepalese holding a huge stock of banned high denomination Indian bank notes could swap them with legal currency in the country.

During his five-minute telephonic conversation with Modi, Prachanda told him that Nepalese have quite a big stock of Indian bank notes of 500 and 1,000 denominations that have now been pulled out of circulation.

Hundreds of thousands of Nepalese, who earn a living by working as daily-wage labourers in India, visit the neighbouring country seeking medical treatment or rely on Indian markets to purchase daily essentials, are said to be holding big chunk of scrapped Indian bank notes, Kathmandu Post reported.

Also, those visiting India as pilgrims and those engaged in cross-border trade are said to have a big stock of now-useless Indian bank notes.

Some of these people, according to the Federation of Nepalese Chambers of Commerce and Industry, may lose their entire savings if the now-obsolete notes are not replaced with legal bills.

"Considering this, India should make an arrangement so that Nepalese can exchange the banned notes here in Nepal," a statement posted on Prachanda's personal website quoted the premier as saying.

In response, Modi said he would immediately resolve the issue and would also ask Finance Minister to hold talks with Nepalese counterpart.

Following the Indian government's surprise decision, the Nepal Rastra Bank (NRB), the central bank, also banned the use of those bank notes in Nepal from last Wednesday.

The NRB has said IRs 33.6 million in the denominations of 500 and 1,000 is within the financial system in Nepal, the report said.

The figure includes cash parked at vaults of banks, financial institutions and NRB.

But actual stock of banned Indian bank notes is expected to be much more because Nepalese were previously allowed to carry Indian 500 and 1,000-rupee bank notes worth up to IRs25,000, it said.

Also, those residing in areas bordering India usually stash Indian notes of larger denominations as they have to frequent Indian markets to buy goods.

The Indian government has said people who have accounts in Indian banks need not worry as the financial institutions will provide them the currency exchange facility. But many Nepalese who own the banned notes do not have accounts in Indian banks.

Against this backdrop, the Ministry of Finance wrote to the Indian Finance Ministry on Thursday requesting that arrangements be made so that Nepalese holding banned Indian notes could replace them with legal tenders here in Nepal.

NRB too wrote a letter to the Reserve Bank of India, seeking exchange facility for Nepalese holding banned Indian notes here in Nepal.



PTI

First Published: Tuesday, November 15, 2016 - 14:43

 

[Sam.]

http://zeenews.india.com/news/india...-prachanda-dials-modi-seeks-help_1949897.html
Last Updated: Tuesday, November 15, 2016 - 14:48

Kathmandu: Nepal Premier Prachanda has telephoned Prime Minister Narendra Modi and sought an arrangement so that Nepalese holding a huge stock of banned high denomination Indian bank notes could swap them with legal currency in the country.

During his five-minute telephonic conversation with Modi, Prachanda told him that Nepalese have quite a big stock of Indian bank notes of 500 and 1,000 denominations that have now been pulled out of circulation.

Hundreds of thousands of Nepalese, who earn a living by working as daily-wage labourers in India, visit the neighbouring country seeking medical treatment or rely on Indian markets to purchase daily essentials, are said to be holding big chunk of scrapped Indian bank notes, Kathmandu Post reported.

Also, those visiting India as pilgrims and those engaged in cross-border trade are said to have a big stock of now-useless Indian bank notes.

Some of these people, according to the Federation of Nepalese Chambers of Commerce and Industry, may lose their entire savings if the now-obsolete notes are not replaced with legal bills.

"Considering this, India should make an arrangement so that Nepalese can exchange the banned notes here in Nepal," a statement posted on Prachanda's personal website quoted the premier as saying.

In response, Modi said he would immediately resolve the issue and would also ask Finance Minister to hold talks with Nepalese counterpart.

Following the Indian government's surprise decision, the Nepal Rastra Bank (NRB), the central bank, also banned the use of those bank notes in Nepal from last Wednesday.

The NRB has said IRs 33.6 million in the denominations of 500 and 1,000 is within the financial system in Nepal, the report said.

The figure includes cash parked at vaults of banks, financial institutions and NRB.

But actual stock of banned Indian bank notes is expected to be much more because Nepalese were previously allowed to carry Indian 500 and 1,000-rupee bank notes worth up to IRs25,000, it said.

Also, those residing in areas bordering India usually stash Indian notes of larger denominations as they have to frequent Indian markets to buy goods.

The Indian government has said people who have accounts in Indian banks need not worry as the financial institutions will provide them the currency exchange facility. But many Nepalese who own the banned notes do not have accounts in Indian banks.

Against this backdrop, the Ministry of Finance wrote to the Indian Finance Ministry on Thursday requesting that arrangements be made so that Nepalese holding banned Indian notes could replace them with legal tenders here in Nepal.

NRB too wrote a letter to the Reserve Bank of India, seeking exchange facility for Nepalese holding banned Indian notes here in Nepal.



PTI

First Published: Tuesday, November 15, 2016 - 14:43

Provide how they got them and then sure.

 

[Hindustani78]

Provide how they got them and then sure.

those visiting India as pilgrims and those engaged in cross-border trade are said to have a big stock of now-useless Indian bank notes.

Nepalese were previously allowed to carry Indian 500 and 1,000-rupee bank notes worth up to IRs25,000, it said.

Also, those residing in areas bordering India usually stash Indian notes of larger denominations as they have to frequent Indian markets to buy goods.



RPF team recovered more than one crore black money from Udhna Danapur Express in Danapur near Patna.

 

[Fireurimagination]

I thought 500 and 1000 rupee denomination was banned in Nepal, then how come they have accumulated more than 33 million in said currency. Also isn't there any checks and balances for the same?

 

[Hindustani78]

I thought 500 and 1000 rupee denomination was banned in Nepal, then how come they have accumulated more than 33 million in said currency. Also isn't there any checks and balances for the same?

Republic of India is even victim of finiancial wars and the way fake currency is being printed and dumbed along the Republic of India's neighboring countries , its was a complete loss for the Indian Establishment.

Some months old article.

June 23, 2016 at 11:19 AM

North Korea began printing the high-quality bills in 2013, and according to NK Intellectuals Solidarity, the task force has Kim's approval for a "three-step strategy."

"The fake currency is first circulated and tested in North Korean markets for sophistication, then tested for safety in a third country, then distributed in massive quantities in China," the activists said.

North Korea uses enterprises nested inside its embassies abroad to access the foreign exchange, and working together with "foreign criminal associations," mixes in the counterfeit currency with other bills in order to place them in circulation.

The group also said a handful of North Koreans were prosecuted in Beijing in May for using fake U.S. dollars in transactions.

A North Korean restaurant worker in Dandong, China, is also being investigated on suspicions of using counterfeit cash, the group said.

In April, Hong Kong media reported North Korea has "world-class" counterfeiting technology capable of manufacturing U.S. dollars and Japanese yen, in addition to the yuan.

 

[abc123xyx]

33million rupee is not a big amount for a whole country like nepal which has a open boarder with india ....

 

[Ajayk]

Nepal is a route for illegal currency and Hawala..

Unless these people can show legitimate earnings, they should not be entertained.

 

[Hindustani78]

Nepal is a route for illegal currency and Hawala..

Unless these people can show legitimate earnings, they should not be entertained.

Even fake currency has been seized in Nepal .

http://www.hindustantimes.com/india...ed-in-nepal/story-qPloVweZTI85zVsnXGmPuK.html
The six -- one Pakistani and five Nepali nationals -- were arrested by the Central Investigation Bureau of Nepal Police and paraded before the media at a press conference here.

According to police, one of them has been identified as Mahammad Nadim (PP number CD 9458742, Karachi) who was arrested from Thamel area of Kathmandu.

Similarly, five Nepali nationals -- Umadevi Pandey, Ishowari Prasad Teli, Parmandna Yadav, Dil Bahadur Thapa and Mahadev Timilsina -- were arrested from various locations of Kathmandu. They were held while travelling to Kathmandu to receive the fake Indian currency notes.

All the Nepali nationals hail from districts close to the Nepal-India border.



Jan 22, 2016- Rutahat police has arrested six people, including an Indian national, who were involved in printing counterfeit Nepali currency. They were made public along with Rs 50,000 fake bills and a print making paraphernalia at the District Police Office on Thursday.

 

[Hindustani78]

http://zeenews.india.com/news/india...ling-to-cope-with-demonetisation_1951331.html

Kathmandu/New Delhi: India`s demonetisation of high-value currency has hit hard the tens of thousands of Nepali migrant workers employed in India as security guards, daily wagers, domestic helps, and others who receive a salary in cash, as they are struggling to cope with the situation.

Shyam Chaudhary from Bardiya district in Nepal, who works at a roadside restaurant in New Delhi, said it took a while before he realised the implications of the ban on 500 and 1,000 Indian Rupee notes by the Indian government on November 8.

"I am struggling to meet my day-to-day needs," said Chaudhary. "Besides, I am worried how I am going to send money back home," the Kathmandu Post quoted him as saying.

Chaudhary said many Nepalis like him were seeking help from friends who had bank accounts.

"We are facing a lot of problems here," he said.

Students who have bank accounts said they have not been able to withdraw money as many ATMs across India have run dry.

"We are taking the final exam. We are struggling to manage cash for auto and other expenses," said Badal Basnet, a chartered accountancy student.

Many migrants send money back home on monthly basis. Now, with no new notes in hand and the old Rs 500 and Rs 1,000 notes becoming illegal tender, they wonder how they are going to remit the earnings.

"The transaction has gone down drastically by 70 per cent or so," said Sunil Mishra, a representative from Prabhu Money Bank, a Nepali remittance company based in New Delhi.

"We have advised Nepalis who do not have bank accounts to use their friends` accounts."

There are about two million Nepalis living in New Delhi only.

Around 50,000 students annually arrive in India to pursue higher studies. There are many Nepalis who come for medical treatment, of them about 100 Nepalis come daily for health check-ups, the Post reported.

A Nepali government official, who was in India for medical treatment, said he was hoping that his debit card would work at the hospital.

"But unfortunately it didn`t. I had to spend five hours in the hospital and one of my friends paid the bill," he said.

Nepal Rastra Bank (NRB), the central bank of the country, has also banned the 500 and 1,000 Indian Rupee notes after the Indian government`s decision on demonetisation.

The NRB has said Rs 33.6 million in the denomination of 500 and 1,000 is within the financial system in Nepal.


The figure includes cash parked at vaults of banks, financial institutions, and NRB.


According to the Federation of Nepalese Chambers of Commerce and Industry, hundreds of thousands of Nepalese who work in India stand to lose their entire savings if the now-scrapped notes are not replaced with legal bills.

IANS

First Published: Saturday, November 19, 2016 - 15:35

 

[Hindustani78]

http://www.reuters.com/article/us-india-modi-corruption-nepal-idUSKBN13J16E

Pashupati Murarka, chief of the Federation of the Nepalese Chambers of Commerce and Industry (FNCCI), estimates that dud banknotes worth as much as 10 billion Indian rupees ($146 million) may be held by individuals and the informal sector.

Nara Bahadur Thapa, an official at the central bank, said Nepal received 70 billion rupees ($640 million) in remittances from migrant workers in India every year.

Thousands of Gurkha soldiers retired from the Indian army also get their pensions paid in the Indian currency.


Modi pledged to resolve the issue, but no arrangements have been made yet, they said.

(Reporting by Gopal Sharma; Editing by Douglas Busvine and Nick Macfie)

 

[Hindustani78]

http://www.hindustantimes.com/world...ed-in-nepal/story-NSb91FPynrmsaypTF34bHI.html

• HT Correspondent, Hindustan Times, Kathmandu
  |
• Updated: Nov 24, 2016 20:29 IST

The Nepal Rastra Bank said the new Indian notes cannot be exchanged until the Reserve Bank of India (RBI) issues a new notification under the Foreign Exchange Management Act. Such a notification allows citizens of foreign countries to hold a certain amount in Indian currency, officials said.

Ramu Poudel, the Nepal Rastra Bank’s chief for the eastern region, told members of the business community in Biratnagar that the new Indian rupees are considered “ illegal” and cannot be exchanged until new arrangements are made by the Indian side.

“As of now, our understanding with the Reserve Bank of India is that a Nepali citizen can hold up to Indian Rs 25,000 (in the) old Rs 500 and Rs 1,000 notes. Even the fate of those old notes is uncertain, how can these new Indian notes coming into the market be considered as legal?" Poudel said.

Indian currency is widely accepted in Nepal, where many people have been facing problems in exchanging the old Rs 500 and Rs 1,000 notes. Due to the open border between the two countries, the new Indian notes too have entered areas along the border with India.

Nepal and India are yet to reach an agreement on modalities for the exchange of the withdrawn notes held by Nepalese citizens. Poudel said the two central banks are in close contacts to address this issue but no way out has been found as yet.

The Nepal Rastra Bank set up a task force to prepare guidelines for exchanging the withdrawn Indian currency notes. It handed over some guidelines to the Indian side through the Indian embassy of Kathmandu. Officials said the Nepalese side had suggested that authorities could collect the withdrawn Rs 500 and Rs 1,000 notes from Nepalese citizens and send them to the RBI for verification and exchange into Nepali currency.

Nepal’s central bank has also made it clear it will not provide over-the-counter exchange facilities to Nepalese citizens holding the withdrawn Indian currency because it lacks the expertise and technology to identify counterfeit currency.

Experts said India is cautious about providing exchange facilities to citizens of a foreign country as it fears it could be misused as “ a clearing house” to convert counterfeit currency.

The Nepali side also suggested that Nepalese citizens would have to open accounts at banks and financial institutions and deposit the demonetised Indian currency to receive the equivalent amount directly in their accounts.

Prime Minister Pushpa Kamal Dahal “Prachanda” and finance minister Krishna Bahadur Mahara have already urged their Indian counterparts to arrange exchange facilities for Nepalese citizens.

The Nepal Rastra Bank has said the country’s financial system holds Rs 500 and Rs 1,000 notes worth Indian Rs 33.6 million. This amount includes cash in bank vaults, financial institutions and the central bank. However, the actual amount is believed to be much higher.

http://www.hindustantimes.com/india...onetisation/story-gwHvUCUSaWdvAcbskBFBFM.html

Nepal and Bhutan, two major recipients of developmental aid from India, have taken up with New Delhi the issue of demonetisation of high-value currency bills and the impact it could have on financial assistance to them, external affairs ministry said on Thursday.

Both the Nepal Rashtra Bank and the Royal Monetary Authority of Bhutan are in touch with the RBI regarding facilitation of collection and deposit of old notes of Rs 500 and Rs 1000 that are already in stock of the Central Banks, other banks and financial institutions, besides general public in the two countries, under existing provisions, MEA spokesperson Vikas Swarup said.

“The matter has been raised by both the Governments of Nepal and Bhutan as well. The government is considering the matter and the RBI will remain in touch with their counterparts in Nepal and Bhutan,” he said.

As per this year’s budget, India has earmarked Rs 5490 crore for Bhutan and Rs 300 crore for Nepal.

He said the inter-ministerial task force formed by the government was also looking at issues relating to foreign nationals and tourists in India, NRIs and PIOs holding old series high denomination notes, and the diplomatic missions based in India which have been been impacted by demonetisation.


“Consultations are ongoing and as soon as we have concrete recommendations from the task force we will share with all stakeholders,” Swarup added.

Last week, Swarup had said the MEA has approached Department of Economic Affairs after it received three or four types of requests including those related to maintaining sufficient flow of funds to diplomatic missions following the demonetisation.

The matter was raised by the Dean of the Diplomatic Corps during his meeting with the MEA officials.

Swarup said all queries have been referred to the DEA, which has formed an inter-ministerial committee headed by an additional ecretary.

“A senior joint secretary from the MEA is also a member of that committee and we await their guidance, their advice and their recommendation which can then be shared with those various categories who have approached us,” Swarup said.

 

[Hindustani78]

With poor road connectivity and hardly any ATMs, Indian regions bordering Bhutan have resorted to using the Ngultrum instead of Indian rupee for daily transactions. Video: Rituraj Konwar

 

[Hindustani78]

http://www.hindustantimes.com/world...ndian-notes/story-6sLGC0Dmn0IfjKtxFgBcAJ.html

Nepal's central bank has developed a software to facilitate exchanging banned Indian notes in the country.

Billions of banned Indian currency in the 500 and 1000 denominations, within and outside the banking system in Nepal, were affected by demonitisation in India. Even Nepali banks are facing serious shortage of 100-rupee notes as very small amount is now permitted to people who want to visit India. People are standing for hours outside the Nepal Rastra Bank (NRB) to exchange Indian currency.

The software was developed by NRB as India has not responded to Nepali government’s proposal to provide exchange facility to Nepalis holding Indian currency in the scrapped denominations.

“We have developed separate software to facilitate the exchange of banned Indian bills and template of exchange modality has been sent for approval from Reserve Bank of India,” NRB Deputy Governor Chintamani Siwakoti said on Sunday.

During discussions with NRB, officials from RBI indicated it would only allow exchange facilities for up to 25,000 Indian rupees to each Nepali citizen.

“ A Nepali citizen can exchange only 25,000 Indian rupees and this is the limitation. If anyone is found having exchanged more than one time, the amount will be seized,” said Siwakoti.

As per the new template developed by the NRB and forwarded to RBI, any interested Nepali citizen wanting to exchange banned Indian notes has to fill a form, submit copy of the Nepali citizenship and other personal details which will be uploaded in the software. Anyone coming for the second time after exceeding the limit on exchangeable amount will be barred from such facilities with the help of the software.

As soon as India gives nod for using the software to avoid multiple exchanges, the NRB will distribute it across Nepal to its branches and will collect the banned Indian notes.

Siwakoti is leading the Nepali delegation to India soon to resolve the problem.

As thousands of Nepali citizens visit India on a daily basis crossing the open border for various purpose, Nepal is faced with a double crisis. On the one hand, Nepalis have been facing hardship to get even 100-rupee Indian bills while on the other hand, India has not given nod to exchange facilities.

Until April of next year, we are not going to get the Indian notes, Siwakoti said, citing RBI officials.

Many Nepali students, pilgrims, those who go for treatment in India, traders and businessmen are facing the currency crunch.

“ But we have enough reserve of Indian 100 rupee bills, so there is not much worry,” Siwakoti said.

Prime Minister Pushpa Kamal Dahal, Finance Minister Krishna Bahadur Mahara and NRB Governor Chirinjivi Nepal spoke with their Indian counterparts several times in the past.

Hundreds of thousands of Nepalis are holding big chunks of scrapped Indian banknotes, including many who earn a living as daily wage labourers in India.

 

[Hindustani78]

http://www.deccanherald.com/content/590132/rbi-give-rs-1-bln.html
Kathmandu, Jan 6, 2017, PTI:

The RBI has agreed to provide Rupees one billion in Rs 100 denomination notes to Nepal Rastra Bank (NRB) to ease the acute shortage of Rs 100 notes faced by the Himalayan nation, a media report said today.

The NRB's plan to import INR 100 denomination notes was delayed due to the Indian government's move to demonetise INR 500 and INR 1,000 notes on November 8.

As RBI was under pressure to manage cash after the demonetisation, the central bank of India had told its Nepali counterpart that Nepal may have to wait till the situation normalises in India, The Himalayan Times reported.

But, RBI recently wrote to NRB that it will be able to provide INR one billion in INR 100 denomination notes, the paper said. As RBI has agreed to provide INR one billion, NRB officials have said that the central bank is preparing to bring the amount within January.

After the demonetisation in India, NRB had also lowered exchange limit of Indian banknotes in Nepal. Currently, NRB is providing exchange facility of up to INR 2,000 on basis of citizenship identification.

Similarly, it is providing INR 10,000 to those who submit a copy of air or train ticket to travel to India and INR 25,000 for those travelling to India for medical check-up.

Janak Bahadur Adhikari, executive director of the Banking Office at NRB, said that the limit of INR exchange will not be reviewed until RBI is able to provide regular exchange facility.

RBI has been extending INR six billion exchange facility to Nepal every year (based on Indian fiscal year calendar) but this year Nepal is unlikely to get this facility due to the demonetisation, according to Adhikari. "NRB has brought only INR 1.20 billion this year," he said.

Currently, NRB has around INR 3.5 billion in its coffers and after bringing another INR one billion, NRB will be able to provide exchange facility to Nepali and Indian nationals in Nepal for the next eight to nine months.

Hundreds of thousands of Nepalese, who earn a living by working as daily-wage labourers in India, visit the neighbouring country seeking medical treatment or rely on Indian markets to purchase daily essentials, were said to be holding big chunk of scrapped Indian bank notes.

The NRB had said in November that IRs 33.6 million in the denominations of 500 and 1,000 is within the financial system in Nepal. The figure included cash parked at vaults of banks, financial institutions and the NRB.

 

[Hindustani78]

http://www.deccanchronicle.com/worl...-facilities-for-demonetised-indian-notes.html

Kathmandu: Finance Minister Arun Jaitley, on Friday announced that Nepal would soon get exchange facilities for the demonetised high-value Indian currency notes to ease difficulties faced by Nepalese citizens.

Jaitley, who was here on a two-day visit to attend the Nepal Investment Summit, said necessary steps have been taken to facilitate the exchange of demonetised currency as per Nepal's request.



He said Nepal Rastra Bank (NRB) and the Reserve Bank of India (RBI) would set a modality of exchange soon and settle the related issues.

The Indian currency is widely used in Nepal for day-to-day transactions, especially in the border areas.

Also, Nepalese citizens working in India send remittances to their families in Nepal in higher denomination notes. Nepal, a landlocked country, depends on India for trade and supplies.

According to the NRB, nearly 33.6 million Indian rupees in Rs 1,000 and Rs 500 banknotes are currently in the Nepali banking channel. However, it is not known how much such banknotes are in the hands of Nepali traders, families of migrant workers and the general public.

Earlier, Nepal's central bank had assured the RBI that it will introduce strong vetting process for those coming to exchange demonetised Rs 500 and Rs 1,000 notes in the country and ensure that the system is not misused.

A two-member RBI team had arrived in Kathmandu on Tuesday to hold talks on the management of demonetised Indian notes possessed by Nepali banks and financial institutions as well as the public.

The team held discussions with the officials of the NRB and representatives of commercial banks on a range of technical issues on providing exchange facility for demonetised Rs 500 and Rs 1,000 Indian currency notes in Nepal.

The Indian government on November 8 banned high-value currency notes as part of its efforts to combat corruption.