Kathmandu. Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel has said that banknotes above Rs 500 cannot be operated in Nepal.

In the meeting of the Finance Committee, Finance Minister Poudel expressed the intention that India’s consent would also be needed to operate Indian banknotes of more than 500 denominations in Nepal. “With our decision alone, it is not possible to use Rs 500 notes here. It is not easy as we have to send it back to India and there is no problem in smaller denomination notes,” poudel said.

In today’s meeting, the lawmakers raised the issue of high denomination Indian banknotes not being used in Nepal and not being able to carry more than US$ 5,000 and Rs 600,000 in Nepal.

In response, Finance Minister Poudel said that there is a provision to bring rs 400,000 without declaring customs duty and rs 600,000 without declaring customs duty. He said that digital payments and QR transactions have made it easier in recent times. Before India’s demonetisation in 2073 BS, notes above Rs 500 denomination were in circulation in Nepal. But after demonetisation, India did not exchange rupees in Nepal.

In today’s meeting of the committee, Finance Minister Poudel pointed out the need for concluding the Banking and Financial Institutions Act, 2073 (BAFIA) at the earliest. “Bafia Bill should be passed by the committee soon. Let’s discuss the level to which discussion is demanded. It’s not about making hasty decisions. But let’s reach a conclusion soon,” said Finance Minister Poudel. He said that the ministry is ready to provide all kinds of assistance required to finalize the bill at the earliest.

Today’s meeting discussed the amendment proposal moved by lawmakers Devendra Poudel and Dr Amresh Kumar Singh on the BAFIA Bill. Lawmaker Poudel said that the loan policy should be adopted to make it easier for investment through bafia amendment.

Similarly, Lawmaker Singh suggested to separate bankers and businessmen to remove conflict of interest, increase lending in productive sectors, adopt a policy that can easily provide loans to the general public by ending the use of loans only by certain business houses, and bringing cryptocurrency transactions within the purview of the law.