Nepal, Bhutan take up demonetisation issue, impact on financial aid

Nepal Rashtra Bank and the Royal Monetary Authority of Bhutan are in touch with the RBI regarding facilitation of collection and deposit of old Rs500 and Rs1,000 notes


As per this year’s budget, India has earmarked Rs5,490 crore for Bhutan and Rs300 crore for Nepal. Photo: Mint
As per this year’s budget, India has earmarked Rs5,490 crore for Bhutan and Rs300 crore for Nepal. Photo: Mint

New Delhi: Nepal and Bhutan, two major recipients of Indian developmental aid, have taken up with New Delhi the issue of demonetisation of high-value currency bills and the impact it could have on financial assistance to them.

Indian foreign ministry spokesman Vikas Swarup said both the Nepal Rashtra Bank and the Royal Monetary Authority of Bhutan are in touch with the Reserve Bank of India (RBI) regarding facilitation of collection and deposit of old Rs500 and Rs1,000 notes that are already with them and with other banks and financial institutions in the two countries besides Nepalese and Bhutanese nationals.

“The matter has been raised by both the governments of Nepal and Bhutan. The government is considering the matter and the RBI will remain in touch with their counterparts in Nepal and Bhutan,” he said.

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As per this year’s budget, India has earmarked Rs5,490 crore for Bhutan and Rs300 crore for Nepal.

Swarup said an inter-ministerial task force formed by the Indian government recently was also looking at issues relating to foreign nationals and tourists in India, non-resident Indians and persons of Indian origin holding the old series high denomination notes, besides diplomatic missions that have been affected by the withdrawal of these notes. Prime Minister Narendra Modi had announced the Indian government’s decision not to recognise the old currency notes in a televised address to the nation on 8 November.

“Consultations are ongoing and as soon as we have concrete recommendations from the task force, we will share with all stakeholders,” Swarup added.

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