“They raised concern that there is also a possibility of Indian nationals, particularly those who have black money, coming to Nepal to exchange their banknotes due to the porous Nepal-India border,” Bhisma Raj Dhungana, an executive director of the NRB​

KATHMANDU, Jan 16: India has reportedly shown concern over the possibility of Indian nationals coming to Nepal to get their demonetized banknotes exchanged as the deadline in India for such facility has already expired. 

Indian officials raised such concerns during a meeting with a Nepali delegation, which was in India last week to discuss the fate of demonetized Indian banknotes that public as well as bank and financial institutions in Nepal hold. 

The legal tender of 1,000- and 500- Indian rupee banknotes was withdrawn on November 8, 2016. The deadline for Indian nationals to exchange such scrapped banknotes expired on December 30 last year. 

“They raised concern that there is also a possibility of Indian nationals, particularly those who have black money, coming to Nepal to exchange their banknotes due to the porous Nepal-India border,” Bhisma Raj Dhungana, an executive director of the NRB who was also in the Nepali delegation, said.

He, however, said that he found the Indian side positive for providing exchange facility.

According to Dhungana, who heads the foreign exchange department of the NRB, Nepal will have to prepare a detailed proposal that, among others, outlining the modality and process for collection of demonetized banknotes and measures to flag suspicious money. 

“Based on this proposal, the Indian side will take decision on the exchange facility,” said Dhungana. 

The Indian government officials may also come to Nepal if they deem it necessary to discuss and consult with us on the issue, he added. 

Dhungana said that the central bank would prepare the proposal by the end of this week by holding needful consultation with the government. 

Though Nepal has been requesting India to provide exchange facility for the scrapped currency with Prime Minister Pushpa Kamal Dahal taking the matter with his counterpart on November 14, the Indian government has not clearly stated whether it would provide such facility for Nepal. 

Indian officials have also inquired about the total amount of Indian demonetized banknotes in Nepal. But Nepali officials did not have any exact data, according to a source.

 
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