Kathmandu, Nov 26: The Indian government on Tuesday said it had reached an agreement with the Nepalese government whereby it would relax its ban on the use and flow of Indian currency notes of Rs 500 and Rs 1000 in the Himalayan neighbour, a report published in nepalnews.com said.
Prime Minister Narendra Modi said at the inauguration of the National Trauma Centre at Bir Hospital here on Tuesday that Indian currency notes of Rs 500 and Rs 1000 had become effective in Nepal from Tuesday. Modi is currently in Nepal to attend the two-day Saarc Summit which began on Wednesday.
"It was difficult that the Rs 500 and 1,000 IC notes were banned in Nepal. We approached Nepal government and have now reached an agreement about it. We have decided that Rs 500 and 1,000 IC notes can be exchanged in Nepal up to maximum limit of IRs 25,000. This will help Nepali migrant workers and also Indian tourist in Nepal to carry and use them without any fear," the Nepalese news report quoted PM Modi as saying.
India was initially firm on the stand fearing entry of fake currency notes
Nepal has long been asking New Delhi to legitimise the provision, citing difficulties faced by Nepali citizens working in India in bringing their hard-earned money back home. But India stood firm on its stand fearing possibility of cross-border circulation of fake Indian currency notes.