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Nepal apex bank announces ban on Indian currency notes

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Nepal, India, Indian currency, Demonetisation, Reserve Bank of India, Nepal Rastra Bank, Currency ban, Business news

Kathmandu: Nepal’s central bank has announced the ban of Indian currency notes with denominations above Rs 100.

The Nepal Rastra Bank (NRB) on Sunday issued a circular for the institutions licensed by it notifying them about the ban, international news agency reported. Nepal’s cabinet in December had decided to ban the use of these currency notes.

 

Nepal, India, Indian currency, Demonetisation, Reserve Bank of India, Nepal Rastra Bank, Currency ban, Business news

 

The decision to ban these notes has come a time when the NRB has requested the Reserve Bank of India (RBI) are questing the latter to allow Nepal to use currency notes with all denominations.

Currently, only the notes with a denomination of Rs 100 and below are freely exchangeable in Nepal. Earlier, the Nepal government has banned the use of Indian currency notes of Rs 2,000, Rs 500 and Rs 200 denominations, according to a media report.

 

Apex bank in Nepal announces ban of Indian currency notes:

 

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.

The decision can affect Nepalese labourers working in India as well as Indian tourists visiting Nepal.

 

Nepal, India, Indian currency, Demonetisation, Reserve Bank of India, Nepal Rastra Bank, Currency ban, Business news

 

The Indian government introduced notes of Rs 2,000, Rs 500 and Rs 200 denominations after demonetisation in 2016.

People have been using new Indian currency notes in the Nepali market for nearly two years.

 

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Rajya Sabha passes co-operative banks under RBI supervision bill.

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The Rajya Sabha on Tuesday passed the Banking Regulation (Amendment) Bill, 2020, to bring co-operative banks under the supervision of the Reserve Bank of India (RBI).

During the discussion on the bill, finance minister Nirmala Sitharaman told the House that several co-operative banks came under stress during the Covid-19 pandemic and their finances are being closely monitored by banking sector regulator Reserve Bank of India (RBI).

The amendment is to protect the interests of depositors and the legislation will help a quick recovery in cases of stressed co-operative banks without any moratorium, she said.

Sitharaman assured the House that the legislation empowers the central bank to regulate only the banking activities of co-operatives and it is not applicable to a primary agricultural credit society or a co-operative society providing finance for agricultural development.

The bill has already been passed by the Lok Sabha on September 16.

India has different types of co-operative banks — urban co-operative banks (UCBs) and rural co-operative banks (RCBs). RCBs are classified into state co-operative banks (StCBs) and district central co-operative banks (DCCBs). According to the RBI, as on March 31, 2019, there were 1,544 UCBs, 34 StCBs and 352 DCCBs. Total amount of deposits of all UCBs as on March 31, 2019 was Rs 484,315.85 crore and RCBs was Rs 505,859.16 crore.

The amendments do not affect existing powers of the state registrars of co-operative societies under state co-operative laws.

The legislation also enables making of a scheme of reconstruction or amalgamation of a banking entity for protecting the interest of depositors without resorting to moratorium that freeze withdrawals by depositors. The bill replaces an ordinance that was promulgated in pursuance of the commitment “to ensure safety of depositors across banks” by the President on June 26.

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