India’s demonetisation has triggered a serious financial crisis in Nepal. Not just the government but the people are also facing hardships, said Nepal’s envoy.
Speaking to The Hindu on Friday, Ambassador Deep Kumar Upadhyay said the government is facing a severe shortfall of its annual stock of Indian currency, due to the lack of supplies from the Reserve Bank of India.
“We have asked for a special arrangement for our standard supply of Indian currency and have received assurances, but frankly we are worried because of growing public resentment over the currency situation which has hit a large number of people,” said the envoy.
Mr. Upadhyay said citizens living in the far-flung mountain region of Himal have nowhere to go with the Indian currency that they traditionally held as savings for difficult times.
“I am receiving phone calls from distant mountain areas and people are seeking explanation about the demonetisation. They are asking India to give them an opportunity to deposit old Indian notes,” said Mr. Upadhyay.
He informed that the Nepal Rashtra Bank has asked the Reserve Bank of India to make some Nepal-specific rules to help the people hit by the note ban.
The envoy said Nepalis treated high-value Indian currencies as the standard currency for saving, and the sudden disappearance of the 500 and 1,000 rupee notes had caused hardships. Mr. Upadhyay said India had not taken adequate steps to tackle the fallout of demonetisation.
“It is already late because any remedial measure by India will require at least three weeks to help the people and the government of Nepal, but still, they should try to address the concerns as it is affecting a very large part of Nepal as well as the government,” he said.
The envoy said Nepal’s difficulties with demonetisation in India is far more extensive than other countries some of whom have complained because of the difficulties posed on their diplomatic missions.
