The Nepal government has banned the use of Indian currency notes of Rs 2,000, Rs 500 and Rs 200 denominations. The government has asked the people to refrain from keeping or carrying Indian bank notes higher than Rs 100 denomination as it has not legalised them, The Kathmandu Post quoted Minister for Information and Communications Gokul Prasad Baskota as saying.
Case will be registered under economic offenses
If any person is caught with these Indian Rupees then the case will be registered under economic offense. The jail will also be arrested and sent to jail.
Impact on business
This decision will affect the trade of both the countries. Nepal's tourism industry will also be affected. People from different cities of India go to Nepal with Indian currency and easily buy goods. Now, Nepal's retail market will also be affected. The decisions of the Nepal government will affect millions of Indian tourists and Nepalese nationals working in India.
Stop the use of notes
In India, there was a large amount of 500 and 1000 notes in Nepal when there was a ban on bondage. Because of which the notes were stuck there. In view of this problem, Nepal has now banned the use of these notes. India currency was easily run in Nepal. Thousands of old notes were stuck in many banks of Nepal, which were not back.
On Nov 8, 2016, the ban was made
The Government of India had announced the ban on November 8, 2016, in which notes were banned on 500 and 1000 rupees old notes. Prime Minister Narendra Modi had described the ban on corruption as a way to get rid of the problem of corruption and black money.