It refers to Nepal Rashtra Bank NRB on 04.01.2019 asking Reserve Bank of India RBI to declare Indian currency-notes of rupees 200, 500 and rupees 2000 as legal tender in Nepal. Presently Indian currency of upto rupees-100 denomination are allowed in normal circulation in Nepal where Indian currency is allowed to be used in normal circulation like Nepalese currency.
RBI should allow only currency-notes of upto rupees 500 as legal tender. Indian currency-notes of rupees-2000 may not be allowed as legal tender in Nepal. Such a decision is necessary because still there are takers of demonetised currency-notes of earlier rupees 500 and 1000 at discounted value because of hope to get these legalised through Nepal route. Decision of not allowing rupees-2000 Indian currency notes as legal tender in Nepal will prevent any such situation in case Indian government decides to demonetise rupees-2000 currency-notes.
Such a decision will give a signal to hoarders of black money in form of rupees-2000 currency notes in India to deposit such black money in banks fearing a further demonetisation, thus negating need of any further demonetisation of currency hoarded in form of rupees-2000 notes. People in India will themselves avoid accepting rupees-2000 notes in normal circulation. A stricter control on currency-circulation thereafter will undo effects of poor implementation of earlier demonetisation done on 08.11.2016.
SUBHASH CHANDRA AGRAWAL