Nepal’s Central Bank is saddled with Rs 7 crore of demonetised Indian currency but India is not making “adjustments” to take back the notes, hoping the scrapped notes would be accepted by its neighbour. The land-locked country depends on India for trade and supplies. Indian currency is widely used in Nepal for day-to-day transactions, especially in the border areas.
The Indian government on November 8, 2016 announced the ban on old 500 and 1,000 rupee notes to curb black money in the system. Of the Rs 15.41 lakh crore worth Rs 500 and Rs 1,000 notes in circulation on November 8, 99.3 per cent or notes worth Rs 15.31 lakh crore have returned to the banking system.