Question: Nepal Rastra Bank (NRB), wrote to the Reserve Bank of India (RBI) to legalize Indian currency notes in the denominations of?
(a) Above 100
(b) Above 200
(c) Above 500
(d) Above 1000
Answer: (a)
Related facts:
- On 6th January, 2019, The Nepal Rastra Bank (NRB), Nepal’s central monetary authority, wrote to the Reserve Bank of India (RBI) to legalize Indian currency notes of denominations higher than Rs 100 in Nepal.
- The NRB notified that the country’s banking system, including banks, financial institutions and NRB, still posses Indian currency denominations of Rs 500 and Rs 1,000 worth Rs 48 million.
- The NRB has asked India’s central bank to issue a notification under the Foreign Exchange Management Act (FEMA), which will make Indian banknotes of denomination more than Rs 100 legal tender in Nepal and to provide the exchange facilities to get bills of such denominations.
Links:
https://timesofindia.indiatimes.com/business/india-business/nepals-central-bank-announces-ban-of-indian-notes-above-rs-100/articleshow/67623689.cms
https://thewire.in/economy/nepal-central-bank-ban-indian-notes-above-rs-100
https://economictimes.indiatimes.com/news/economy/policy/nepal-writes-to-rbi-to-declare-banned-new-indian-currency-notes-legal/articleshow/67406624.cms