NEW DELHI. More than a year after Prime Minister Narendra Modi announced
demonetization, Nepal is still awaiting a mechanism to return crores of demonetized Indian rupees and Indians are taking full advantage of it.
The two apex banks of the neighbouring country (i.e. Nepal Rashtra Bank and Reserve Bank of India) have failed to come up with a provision that can facilitate exchange of the demonetized Indian currency.
This has enabled demonetized currency holders from India to shell their old ₹500 and ₹1000 Indian notes in the casinos of neighbouring country, albeit a loss of almost 50%.
The casinos of Kathmandu are accepting old notes, but only returning half the fair value of it in Nepalese currency. For example, in return for an old ₹500 note, the casinos give you 400 Nepalese rupees. While the current Indian ₹500 note fetches 800 Nepalese rupees.
On investigation, our Times group reporter spotted a politician from Bihar spending his old Indian notes worth ₹3 lakhs in one such casino.
This 'facility' is being provided in dance bars of Nepal as well. Kathmandu has more than two thousand legal and illegal dance bars.
One being asked what the casino management intends to do with the demonetized Indian currency, one employee said, "We will return it to your country."
"The Indian government is yet to take the demonetized Indian currency in Nepal. When they do so, these old notes used in the casinos will be added to the lot. Thus, the private banks in Nepal will earn more money," he revealed.
He further disclosed that the five renowned casinos in Kathmandu, ie: Royal, Pride, Nepal, Rad and Venus are involved in this.
While releasing the demonetization data in August last year, Reserve Bank of India had revealed that as much as ₹15.28 lakh crore of the high-value currency that was demonetized, returned to the central Bank. The question is if that includes the notes in Nepal? Or is that separate?
Content courtesy: Arindam Bandyopadhyay, Kathmandu, Ei Samay
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