November 11: In the wake of ban on banknotes of denominations INR 500 and INR 1,000 in India, many Nepalis have also been facing problems. The affected ones include general people, businessmen, employees and those travelling for education and treatment to India.  Not only the ones who regularly used to go to the other side of the Nepal-India border for shopping, people who have kept  small amount of Indian Currency with themselves also have been affected by the demonetisation. The Indian government earlier this week ordered the withdrawal of the bank notes from circulation in a bid to take out untaxed money.  

Due to the decision, the Indian citizens who have come for treatment purposes in Nepal have also been experiencing troubles. Nepal Rastra Bank (NRB) has prohibited the exchange of INR 500 and INR 1000 banknotes from Wednesday after the demonetisation move in India. This has led to problems in cash transactions in the markets of Nepal-India border areas.  Not only the residents of border areas, general people in Kathmandu are also worried about the exchange of the Indian currency. On Thursday, around 400 people queued in front of NRB office Thapathali to exchange their money. According to NRB Spokesperson Narayan Prashad Poudel, the central bank has requested the Reserve Bank of India (RBI) to exchange the demonetised banknotes. NRB has requested RBI to facilitate the Nepalis to exchange the banknotes they have with INR 25,000 rupees per person. "The government, foreign ministry and the finance ministry are also in talks with RBI to resolve this issue," says Paudel. However, Nepali authorities have not received any response from the Indian banking authority.

Border markets directly affected

The border market in the country's eastern region including Kakadvitta, Biratnagar and Mechinagar along with the western areas of Mahendranagar, Nepalgunj, Dhangadi, Bhimduttanagar and Gaddachauki have been directly affected by the ban.