Cash-strapped Nepali travellers to India will get much needed respite, as the central bank has hiked the limit on ATM withdrawals from India, along with providing double Indian currency facility to those travelling for medical purposes.
Nepal Rastra Bank (NRB) issued a circular on Sunday which states that the daily limit on withdrawals in India from the ATM cards issued by Nepali bank has been increasedto IRs 15,000 from the existing limit of IRs 10,000.
The move is aimed at providing relief to the Nepali travellers and students in India that have to struggle with their expenses due to limit imposed by the central bank. However, NRB has kept the monthly limit unchanged at IRs 100,000.
Moreover, NRB has further decided to double the amount of Indian currency exchange facility provided to any Nepali travelling to India for medical purposes. “Anyone going to India for medical treatment can obtain up to IRs 50,000 in cash on the recommendation of licensed medical practitioners,” said NRB’s Foreign Exchange Management Department.
Earlier, NRB allowed only IRs 25,000 to an individual traveller, irrespective of purpose. “It had been over three years since the central bank revised its Indian currency related policies, so we felt the need to change the limit based on the current need,” said Bhaskar Mani Gnawali, spokesperson for NRB.
Likewise, Nepali importers and exporters can get up to IRs 50,000 to pay Indian transport companies that haul consignments.
Getting Indian currency in cash has always been a difficult task in the Capital. There has always been a shortage of Indian currency in cash form here, as the central bank has been supplying limited quantity to the banks in its bid to promote alternative payment instruments.
Moreover, NRB only provided about IRs 50,000 to IRs 100,000 in the form of cash to each financial institution on weekly basis based on their size. Despite a cash-centric culture, NRB has always stated that it is deliberately discouraging the cash transaction of Indian currency to promote electronic payments. The Indian central bank — Reserve Bank of India — provides NRB, IRs six billion in cash annually for the exchange facility.
Although NRB has increased the ATM withdrawal limit in India, the limits vary between the card providers. National Payment affiliated banks only allow withdrawal of IRS 5,000 to IRS 50,000 per month. The banks charge above IRs 150 per withdrawal or payment as transaction fee.
“Anyone going to India that need bit larger amount of cash can always get it from NRB’s offices if they provide required testimonials or they can transfer the money through SWIFT transfer, drafts and other such instruments,” pointed out Gyanwali.
Nepal’s foreign reserve has never been short of Indian currency, but cash shortage has always been the issue due to large number of informal trade between the two countries. Importers grab as much cash as they can by offering higher exchange rate to pay for the illegal trade, creating the shortage of hard Indian currency, especially in border towns.
source: the himalayan times,21 april 2014
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Nepal Rastra Bank (NRB) issued a circular on Sunday which states that the daily limit on withdrawals in India from the ATM cards issued by Nepali bank has been increasedto IRs 15,000 from the existing limit of IRs 10,000.
The move is aimed at providing relief to the Nepali travellers and students in India that have to struggle with their expenses due to limit imposed by the central bank. However, NRB has kept the monthly limit unchanged at IRs 100,000.
Moreover, NRB has further decided to double the amount of Indian currency exchange facility provided to any Nepali travelling to India for medical purposes. “Anyone going to India for medical treatment can obtain up to IRs 50,000 in cash on the recommendation of licensed medical practitioners,” said NRB’s Foreign Exchange Management Department.
Earlier, NRB allowed only IRs 25,000 to an individual traveller, irrespective of purpose. “It had been over three years since the central bank revised its Indian currency related policies, so we felt the need to change the limit based on the current need,” said Bhaskar Mani Gnawali, spokesperson for NRB.
Likewise, Nepali importers and exporters can get up to IRs 50,000 to pay Indian transport companies that haul consignments.
Getting Indian currency in cash has always been a difficult task in the Capital. There has always been a shortage of Indian currency in cash form here, as the central bank has been supplying limited quantity to the banks in its bid to promote alternative payment instruments.
Moreover, NRB only provided about IRs 50,000 to IRs 100,000 in the form of cash to each financial institution on weekly basis based on their size. Despite a cash-centric culture, NRB has always stated that it is deliberately discouraging the cash transaction of Indian currency to promote electronic payments. The Indian central bank — Reserve Bank of India — provides NRB, IRs six billion in cash annually for the exchange facility.
Although NRB has increased the ATM withdrawal limit in India, the limits vary between the card providers. National Payment affiliated banks only allow withdrawal of IRS 5,000 to IRS 50,000 per month. The banks charge above IRs 150 per withdrawal or payment as transaction fee.
“Anyone going to India that need bit larger amount of cash can always get it from NRB’s offices if they provide required testimonials or they can transfer the money through SWIFT transfer, drafts and other such instruments,” pointed out Gyanwali.
Nepal’s foreign reserve has never been short of Indian currency, but cash shortage has always been the issue due to large number of informal trade between the two countries. Importers grab as much cash as they can by offering higher exchange rate to pay for the illegal trade, creating the shortage of hard Indian currency, especially in border towns.
source: the himalayan times,21 april 2014
LINK
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