NRB raises IC withdrawal limit

- POST REPORT, Kathmandu
NRB raises IC withdrawal limit

Apr 30, 2014-

Nepal Rastra Bank (NRB) has raised the maximum limit of Indian currency (IC) withdrawal using debit/credit cards in India to IRs 15,000 per day from IRs10,000 earlier. However, the central bank has kept the monthly withdrawal limit unchanged at IRs 100,000.

The central bank has been imposing the ceiling on IC withdrawals in India to discourage black marketing of Indian rupee in the border areas. Black marketers had been selling IC at bordering towns at Rs 170 per IRs 100 although official exchange rate is Rs 160 for IRs 100.

In a circular, NRB has also offered special exemption for receiving IC in cash for medical treatment purposes. People can get a maximum IRs 50,000 in cash for medical treatment in India based on written recommendations of registered doctors. Such a provision was not there earlier.

For general purpose, a person can get up to IRs 25,000 cash as per the application forwarded to banks and financial institutions (BFIs). However, BFIs have been asked to encourage customers to use other instruments like TT and draft.

A senior NRB official said the withdrawal limit amid a comfortable level of IC with the bank in both cash and non-cash forms in its agency accounts in India.

“The decision to increase the ceiling was also taken in to address the growing demand of the general public,” said the official.

According to NRB, it currently has IRs 5 billion in cash and an additional IRs 1 billion in other BFIs. The central bank also has around IRs 90 billion in agency accounts in India, of which around IRs 80 billion is invested in Indian treasury bills and rest for Nepal Oil Corporation (NOC). “We have to pay around IRs 12 billion to Indian Oil Corporation every month for oil imports,” the official said.

The central bank has also fixed the maximum limit for making payment to Indian transporters in cash to IRs 500,000 for transporting Nepali shipments.

Published: 01-05-2014 08:53

User's Feedback

Click here for your comments

Comment via Facebook

Don't have facebook account? Use this form to comment