After Indian Prime Minister’s address to the Nation on November 8, 2016 The Indian currency Rs. 500 and Rs. 1000 notes were rendered useless papers. But, the banks can still accept the genuine notes for exchange. But, the Nepal Rastra Bank has rendered the notes useless in Nepal. The bank has told that no banks or financial institution will exchange the Indian currencies in Nepal.
Those big currencies were banned in Nepal for a long time. It had only been two years since the banks had started accepting the currency in Nepal. The new decision is a big blow to those who had kept the currency in their homes.
The Indian government is planning to release the new notes of value Rs. 500 and Rs. 2000 soon. The Indian government has told that the step was taken to curb corruption and fight against fake currency. The announcement was very unexpected and sudden. Although the government had been planning for the step for the last six months, it was kept very secret.