Officials of Reserve Bank of India (RBI) visiting Nepal to discuss on providing exchange facility to Nepali people holding demonetised Indian banknotes of 500 and 1000 denomination have proposed to allow the exchange facility up to IRs 4,500 per individual.

In a meeting held on Sunday morning with the Nepal Rastra Bank (NRB) officials, the Indian team offered exchange facility via formal banking channel for up to IRs 4,500 per person in demonetised banknotes. As per the Indian team proposal, individual possessing banned Indian bank bill will have to open account at banks and financial institutions and deposit the Indian currency before the NRB sends it to RBI for verification. After verification RBI would send back the equivalent currency in other denominations.

Although, the NRB officials agreed over the modality presented by the RBI, they didn’t agreed over the amount up to which exchange facility is given. “We asked them to provide exchange facility for up to IRs 25,000 in the banned denominations,” said Bhisma Raj Dhungana, head of foreign exchange department at NRB who participated in the meeting. “We told them it was the Indian government’s decision to allow Nepalis to hold up to IRs 25,000 and they should provide exchange facility up to that limit.”