Follow us on
Welcome Guest! You are here: Home » International
Questions from abroad Modi needs to answer on banned Rs 500 and 1000 notes
Thursday November 17, 2016 4:54 PM, Deepak Goel, IANS

Modi with Prachanda

New Delhi:
Post-demonetisation of high-value currency notes in India, Nepal Premier Pushpa Kamal Dahal 'Prachanda' rang up Prime Minister Narendra Modi seeking an arrangement whereby Nepal residents holding a huge stock of the now-banned high denomination Indian rupee notes could swap them for legal tender.

Local media in Nepal, too, had a field day following the Prachanda-Modi telephonic conversation earlier this week, alleging that the Maoist leader had more than Rs 1 billion in Indian currency sequestered with trusted aides in India -- and was worried about the loss that he stood to suffer.

Named among the Nepali political bigwigs in the same soup were other senior Maoist leaders who, too, have allegedly amassed crores of rupees since they gave up their 10-year-long armed insurgency in 2006.

Indian currency is legal tender in Nepal, with which India shares an 1,850-km-long open border. Indian money is freely accepted in commercial transactions that take place in the Himalayan nation.

However, as per Reserve Bank of India guidelines, no Indian currency note higher than Rs 100 may be taken out of the country -- and this restriction is scrupulously implemented by the Indian customs authorities.

Moreover, as per another RBI stricture (dated June 19, 2014) and implemented by the Indian Customs authorities, no person may take outside India -- or bring back into the country -- an amount exceeding Rs 25,000.

The Nepali central bank, the Nepal Rastra Bank (NRB), has since Wednesday stopped all transactions and exchange of Indian currency notes of Rs 500 and Rs 1,000 denominations -- which it was doing illegally in view of the RBI guidelines on Indian currency export.

According to NRB estimates, Indian high-denomination currency of the order of Rs 3.36 crore is in the financial system in Nepal.

Interestingly, similar demands for facilitation in exchange of Indian high-value notes has come from Non-Resident Indians in several countries who have suggested that bank note-exchange counters be set up in the Indian missions there.

A large number of NRIs in the United Kingdom urged Prime Minister Modi to allow note exchange abroad also so that they were not inconvenienced. The Indian High Commission in London, so far, has received no instructions in this regard.

In China, too, where a large number of Indian businessmen reside for long periods to carry out trading activity, appealed to the Indian Embassy in Beijing to allow note exchange -- but the embassy officials reportedly asked them to do so on their return to the country.

Significantly, what has come in prominence -- though known among financial circles even earlier -- is that huge amounts of Indian currency, especially in high-value notes, is sequestered abroad and there are people who want to now exchange the phased out notes for the new ones.

Prachanda has knocked Modi's doors seeking help for millions of Nepalis who have been put into financial difficulties by the Indian government measure. The question is: will Modi help? And can he under the existing RBI rules?

(Deepak Goel can be contacted at deepak.g@ians.in)

 


Share this page

More Headlines
Amid war on black money, govt writes off debt of Mallya, other defaulters; A fraud, says Congress
Opposition corners government over demonetisation, treasury remains adamant
CBSE UGC NET July 2016 results delayed, likely to be declared in next few days
Owing to opposition attack over demonetisation, govt unlikely to bring GST bills soon
This Artificial Intelligence technique associates images with sounds
Why scientists fear the worst under a Trump presidency
Silent on demonetistion, Modi calls for healthy debate in parliament
CBSE UGC NET July/August 2016 Results likely to be declared today: Reports
UPSC Civil Services Main Examination 2016: e-Admit Cards available for download
Photos showing Iranian clerics with prostitutes re-emerge in media
Standing in queues for hours traumatic: SC on demonetisation, cash shortage
Eminent citizens condemn demonetisation
Income Tax department is preparing for swoop on dubious depositors post Dec 30
Kejriwal, Omar and Shiv Sena to join Mamata's march against demonetisation
Demonetisation riles opposition, may rock GST boat
Real agenda behind demonetisation is to bail out non performing asset: Congress
Third hospital hit in Syria's Aleppo within 24 hours; One dead, several injured
'Chalo JNU' protest continues, Students say no 'permission never required in free JNU'
Bank union threatens to 'review' cooperation to demonetisation if employees are put to stress
Two Arab members call Adhan in Israeli parliament to protest controversial law
Class 12th student commits suicide over no smaller denomination notes
Panic, chaos in Odisha after rumours of ban on Rs 10 coins
Rupee fall, foreign fund outflows depress equity markets

 Post Comments
Note: By posting your comments here you agree to the terms and conditions of www.ummid.com