FNCCI urges govt to provide enough IC for businesses

- Post Report, Kathmandu

Nov 22, 2016-

The Federation of Nepalese Chamber of Commerce and Industries (FNCCI) has asked the government to provide Indian currency to the businesses and the traders to meet their daily expenses. 

“After the Indian government pulled out 1,000 and 500 rupee banknotes from the circulation, we have been facing acute shortage of Indian currency,” said FNCCI President Pashupati Murarka while speaking at an interaction organised by the chamber on Monday. “Although a majority of our imports are carried out through letters of credit and other banking instruments, smaller expenses such as payment of transportation charges, emergency imports of machinery parts are still carried out in cash,” he explained. “Businesses are finding it difficult to manage such expenses due to unavailability of Indian currency.” 

The FNCCI urged the government for swift diplomatic efforts to resolve the problem. “Although, the amount of demonetised Indian currency is low in formal banking channel, the actual amount of these banned Indian banknotes in Nepal is expected to be much higher as Nepalis were previously allowed to carry up to IRs25,000 in cash,” said Murarka. Nepal Rastra Bank (NRB) Executive Director Nar Bahadur Thapa said the Indian government has pulled out its currency from circulation to curb the illegal money and counterfeit currency. “Therefore, it will not offer any relaxation to Nepal if it affects its motive,” said Thapa. “If anyone is holding demonetised Indian currency beyond the legal limit, they have to suffer.” 

NRB Spokesperson Narayan Prasad Poudel said the central bank is relentlessly pursuing for a solution and is in constant consultation both with the Indian embassy in Kathamndu and the Reserve Bank of India (RBI).  “Also, we have a strong reserve of Indian currency and we are ready to provide such currency only after considering the need of the businesses,” said Poudel.

Published: 22-11-2016 08:38

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