Reserve Bank of India (RBI) on Thursday asked Nepal Rastra Bank to inform the former about the stock of Indian currency in denomination of 500 and 1000 within the Nepali financial system.

According to Bhisma Raj Dhungana, chief of Foreign Exchange Management Department, the RBI on Thursday emailed the NRB seeking the details of Indian bank notes of 500 and 1,000 circulated within the banking industry of Nepal.

Responding to RBI's email on the same day, the NRB said there are around IRs 35 million in denominations of 500 and 1,000 within the formal financial system of the country. “We asked banks and financial institutions (BFIs) and money changers to submit their stock of Indian bills of 500 and 1000,” said Dhungana. “Altogether there are around IRs 35 million in denomination of 500 and 1000 and it includes the central bank’s possession too.”   

The RBI inquiry comes two days after the Indian government suddenly banned the circulation and use of Indian currency of largest denominations. Following the Indian government’s move, the NRB also banned the circulation of those Indian bank notes and wrote letter to the RBI to take back their scrapped bills.   

In a surprise move On Tuesday night, Indian government scrapped 1,000 and 500 rupee notes in an apparant bid to crub the black money and corruption.