Nepal’s central bank issues Indian notes
Nepal Rastra Bank (NRB) has started distributing Indian Currency (IC) notes to commercial banks after it failed to supply enough Nepali Currency notes on the eve of Dashain festivals.
NRB gave NRs 20 million each and an equivalent amount of IC notes to commercial banks on Tuesday, according to Sashin Joshi, president of Nepal Bankers’ Association.
NRB started distributing IC notes after commercial banks across the country faced acute shortage of cash. Customers are badly affected due to the cash shortage.
Many people, especially government employees, have not been able to encash their pay cheques due to the cash shortage.
Government school teachers resorted to padlocking Rastriya Banijya Bank (RBB) branches in various districts including Jhapa and Parvat on Tuesday, after they could not encash their pay cheque just before Dashain.
NRB has issued IC notes by following standard procedure it required at other times. Commercial banks need to file an application at NRB mentioning they need IC notes for some specific purpose to get the IC notes. Customers need to do the same at the commercial banks.
Both commercial banks and customers did the same to withdraw cash Tuesday, although they did not necessarily require IC notes.
NRB says, cash shortage arose due to an imbalance in the cash flow cycle. Unlike the usual trend, currency notes that had been circulated in the market a few months ago did not come back to the central bank, hence the imbalance, NRB officials say.
Keeping in view the high cash flow during the festive season, NRB had ordered for new currency notes printed in France. Some currency notes have arrived in Kolkata. However, there was a delay in the transportation of cash from Kolkata to Kathmandu, according to NRB officials.
On Sunday, NRB had received and distributed to the commercial banks currency notes amounting to Rs 4 billion. However, the amount was not sufficient to meet the demands.
NRB gave NRs 20 million each and an equivalent amount of IC notes to commercial banks on Tuesday, according to Sashin Joshi, president of Nepal Bankers’ Association.
NRB started distributing IC notes after commercial banks across the country faced acute shortage of cash. Customers are badly affected due to the cash shortage.
Many people, especially government employees, have not been able to encash their pay cheques due to the cash shortage.
Government school teachers resorted to padlocking Rastriya Banijya Bank (RBB) branches in various districts including Jhapa and Parvat on Tuesday, after they could not encash their pay cheque just before Dashain.
NRB has issued IC notes by following standard procedure it required at other times. Commercial banks need to file an application at NRB mentioning they need IC notes for some specific purpose to get the IC notes. Customers need to do the same at the commercial banks.
Both commercial banks and customers did the same to withdraw cash Tuesday, although they did not necessarily require IC notes.
NRB says, cash shortage arose due to an imbalance in the cash flow cycle. Unlike the usual trend, currency notes that had been circulated in the market a few months ago did not come back to the central bank, hence the imbalance, NRB officials say.
Keeping in view the high cash flow during the festive season, NRB had ordered for new currency notes printed in France. Some currency notes have arrived in Kolkata. However, there was a delay in the transportation of cash from Kolkata to Kathmandu, according to NRB officials.
On Sunday, NRB had received and distributed to the commercial banks currency notes amounting to Rs 4 billion. However, the amount was not sufficient to meet the demands.
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