PM Oli urges Indian PM Modi to exchange the demonetised notes

Indian Prime Minister Narendra Modi had announced demonetisation of high value currency notes on November 8, 2016. The action was taken with an aim to crack down on the use of illicit and counterfeit cash to fund illegal activity and terrorism. 

Nepalese Prime Minister K P Sharma Oli today urged Indian PM Narendra Modi to allow exchange of demonetised high-value Indian currency notes held by the country's banks and the general public at the earliest. According to the Central Bank, nearly 33.6 million Indian rupees in Rs 1,000 and Rs 500 banknotes are currently in the Nepalese banking channel. 

Nepalese citizens working in India send remittances to their families in Nepal in higher denomination notes. Moreover, the currency is used widely in the border areas.

Indian Finance minister Arun Jaitley, who was on a visit to Nepal in March, had said the NRB and the Indian Central bank RBI would set a modality for the exchange of demonetised currency notes soon and settle the related issues.