Nepalese asked not to use high denomination Indian currency

Use of Indian currency notes with Rs 500 and Rs 1,000 denominations is illegal in Nepal since 1995.

Last Updated: May 08, 2011, 20:08 PM IST

Kathmandu: In a bid to prevent the circulation of counterfeit currency, Nepal has asked its citizens, especially those residing along the Indo-Nepal border, not to use Indian currency notes with Rs 500 and Rs 1,000 denominations and warned that legal action would be initiated against those found violating the order.

Use of Indian currency notes with Rs 500 and Rs 1,000 denominations is illegal in Nepal since 1995.

Nepal Rastra Bank, the country`s central bank, has issued a fresh notice asking its citizens to refrain from using Indian currency notes with Rs 500 and Rs 1,000
denominations. It also warned that those violating the law will be prosecuted.

It is learnt that the businessmen residing in the border area are still using such banned Indian currency notes despite prohibition imposed by the government with a view to controlling transaction of counterfeit currency, the notice
said.

Since such types of activities will put obstruction to the Nepal government`s efforts to control transaction of fake currency, it is notified to the general public to strictly
follow the rules and refrain from using such bank notes, the central bank said in its notice.

If anybody is found to be using or buying and selling such type of higher denomination bank notes legal action will be initiated against such persons, the bank said.

The central bank`s notice comes in the wake of arrest of a Pakistani national from Kathmandu on Friday along with Rs 3.1 million fake bank notes.

India`s External Affairs Minister SM Krishna during his recent visit to Nepal had sought Nepal government`s help in controlling circulation of counterfeit Indian currency.

PTI