The Nepal Rastra Bank said that they are waiting for a notification from the RBI under the Foreign Exchange Management Act. While some Nepalese citizens are bearing the brunt of demonetization and trying to exchange the old Rs 500 and Rs 1000 notes, the Nepal Rastra Bank has reportedly banned Rs 500 and Rs 2000. The Nepal Rastra bank said that the new Indian notes can’t be exchanged until the Reserve Bank of India (RBI) issues a notification under the Foreign Exchange Management Act, reported Hindustan Times. Even the fate of those old notes is uncertain, how can these new Indian notes coming into the market be considered as legal”: Normally, Indian currency is widely accepted in Nepal and a lot of people in the country are facing trouble when exchanging notes. Unlike people in India, they can't deposit or swap old notes at banks that will accept them until Dec. 30.

Source: dna November 24, 2016 13:49 UTC