Demonetisation: Nepal bans new Indian Rs 500 and Rs 2,000 notes

Zee Media Bureau

Kathmandu: Terming them "unauthorised and illegal", Nepal Rastra Bank on Thursday banned the usage of India's new currency notes of Rs 500 and Rs 2,000 denomination.

Nepal Rastra Bank (NRB) has called the new currency notes "unauthorised and illegal".

NRB spokesperson Narayan Poudel said these new currency notes are not yet legal in Nepal, according to Onlinekhabar.Com.

Poudel said these notes will be legal in Nepal only when India issues a FEMA notification as per the Foreign Exchange Management Act.

India is likely to issue a FEMA notification, allowing people in Nepal and India to possess certain amount of Indian currency.

Earlier, a ban was in effect in Nepal till last year against the use of Rs 500 and Rs 1,000 denominations notes.

(PTI inputs)