Kathmandu, December 14: Over two years after the Indian government announced demonetisation of old Rs 500 and Rs 100 notes and introduced new Rs 500 and Rs 2000 currencies, the Nepal government has banned the use of newly-introduced higher Indian bank notes. The Nepal government asked its citizens to stop the use of Rs 200, Rs 500 and Rs 2000 notes issued by the Indian central bank, Reserve Bank of India (RBI).

According to the Nepal government’s spokesperson and Minister for Information and Communications Gokul Prasad Baskota, the country has not legalised the Indian banknotes of denomination Rs 200, Rs 500 and Rs 2000. The government asked its citizens to use only Rs 100 Indian currency in Nepal from now onwards. The decision was taken after a cabinet meeting on Thursday. You Cannot Exchange Rs 200 & Rs 2,000 Notes? Torn & Mutilated Currency May Become Impossible to Get Exchanged in RBI & Banks.

Billions of old Indian currency in the 500 and 1000 denominations were in circulations in Nepal when the Modi government demonetised them on November 8, 2016. The Indian government had introduced new Rs 500 and Rs 2000 notes. The Nepal government had not made any announcement on the status of the new currency notes.

The decision to ban new Rs 500 and Rs 2000 banknotes comes as the Nepal government is making preparations to celebrate 2020 as the ‘Visit Nepal Year’. At least 2 million people are supposed to visit Nepal in 2020, the bulk of them from India.

(The above story first appeared on LatestLY on Dec 14, 2018 10:51 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).