Nepal Rastra Bank issued a circular on Sunday banning Rs 2,000, Rs 500 and Rs 200 denominations of Indian currency and it is feared the move can affect Indian tourists visiting the Himalayan nation.
The central bank however does not prohibit holding and carrying of Rs 100 or less denominations.
Travel traders and entrepreneurs meanwhile have criticized the ban saying the move is to affect their tourism business amid such environment when the government has announced Visit Nepal campaign.
A survey reveals around 1.2 million Indians visited Nepal through surface route while 160,132 through air and average length were 5.8 days in 2018.
The survey from overland Indian visitors’ was about Rs 11,310 per day.
India issued new banknotes of Rs 2,000, Rs 500 and Rs 100 in 2016. The move has hit Nepal as well as other neighboring countries like Bhutan where Indian currency is widely used.
Nepalese premier earlier said to be escalating the demonetization issue with Indian leaders.
The Narendra Modi government banned Indian currency of Rs 1,000 and Rs 500 in India in 2016. The move affected people in India too. New notes of Rs 2,000, Rs 500 and Rs 200 were issued thereafter.
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