India's demonetisation move leaves Nepal worried

IANS | Kathmandu November 18, 2016: The demonetisation move has affected people in border regions of Nepal as most of them have been facing problems in exchanging their Indian currency of Rs 500 and 100 denomination.

Prime Minister Narendra Modi's decision to demonetise Rs 500 and Rs 1,000 currency notes has been a cause of worry for most of the households in far-western regions of Nepal as youths from the hills head off to India to work and possess the demonetised currency notes, The Himalayan Times reported.

Tej Bahadur Singh from Bajura district of Nepal has Rs 50,000 in the 500 and 1000 denominations.

"This is all the saving of my son who works as a security guard in India. He has been saving money to buy some land, but ever since I've heard that these notes aren't accepted anymore, I am very worried," he said.

According to Tek Bahadur Shahi from Barhabisa, up to Rs 4 million in demonetised currency notes have been estimated from a village in the city.

"There are around 135 houses in the village and they are found to be in possession of up to four million rupees in 500 and 1000 rupee currency notes," he said.

The demonetisation has affected all nine districts of the border region and five districts in Karnali.

Humla Communist Party of Nepal (Unified Marxist-Leninist) district committee member Debachu Sarki said local traders and businessmen were exchanging the demonetised notes for Nepali currency.

Trader Bagadal Mall from Bajura also lamented the November 8 decision which has affected the neighbouring nation.

According to Banijya Bank (Bajura branch) senior assistant Jitjung Singh, many people are frequenting the bank to exchange their Indian currency notes these days.

"Nepal Rastra Bank is taking diplomatic initiatives. I think something will come out of it in a few days," he said.