Nepal is looking at the possibility of lifting the ban on use of Indian Currency (IC) notes of denomination of IRs 500 and IRs 1,000.
The issue came up for discussion between India's commerce secretary Rahul Khullar and his counterpart Purushottam Ojha in New Delhi yesterday.
"The Nepali side noted the possibility that notes of IRs 500 and IRs 1000 denomination may be rendered legitimate for use in Nepal," the minutes of the meeting said.Nepal had banned use of IRs 500 over a decade ago in June 2000 due to rising fake Indian currency circulation.
The Nepali workers in India have been facing difficulties in repatriating their hard-earned income to Nepal owing to de-legitimisation of IRs 500 and IRs 1,000 and requested that the notes may be allowed for legitimate use in Nepal.
Indian side reiterated its concern regarding circulation of fake Indian currency notes through Nepal and its security implications thereof.
"Nepali side informed that vigilance has been increased to see that such illegal activities are curtailed but Indian side agreed that a strategy should be devised for detecting and punishing those involved in circulation of counterfeit currency," the minutes said.
The meeting of India-Nepal inter-governmental committee (IGC) on trade, transit and cooperation to control unauthorised trade also discussed about export and registration of pharmaceuticals in Nepal.
Indian side stated that Nepal has stopped registration of pharma manufacturing companies until further notice, as a result no new products can be registered and exported to Nepal.
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