Central bank to issue new banknotes for Dashain from mid-September

The central bank is preparing to distribute new banknotes targeting Dashain festival from mid-September.
Spokesperson for the central bank Laxmi Prapanna Niraula confirmed that Nepal Rastra Bank (NRB) is preparing to finalise the date to distribute new banknotes for the festive season as always. “The central bank will most probably begin to supply new banknotes from mid-September or 15 days before Dashain festival starts,” he said, adding that it is expected to circulate new banknotes of different denominations worth almost Rs 14 billion for the festive season this year. “The central bank had issued new banknotes equivalent to the same amount for Dashain last year.”
After circulating the new bank notes, the central bank scraps old currency notes of the equal amount to maintain money supply.
Last Dashain, the central bank had distributed lower denomination notes of up to Rs 27,000 for each person from the central bank banking office in Thapathali, Rastriya Banijya Bank and Nepal Bank Ltd. The central bank had also allowed individuals to get 100 units of banknotes of Rs 100 and 200 units each of Rs 50, Rs 20, Rs 10 and five-rupee denominations from the central bank and designated branches of Rastriya Banijya Bank and Nepal Bank Ltd.

Central bank issues new banknotes worth Rs 11 billion

The central bank has issued Rs 11 billion worth of new banknotes to different banks and financial institutions meant for Dashain till Monday.
Executive director at the Currency Management Department of the central bank Laxmi Prapanna Niraula said that the Nepal Rastra Bank (NRB) has circulated new notes of Rs 5, Rs 10, Rs 20, Rs 50 and Rs 100 denomination worth Rs 11 billion over the last one week.
The central bank had started the distribution of new currency notes to the public from September 13.
"The demand for new notes in banks and financial institutions is increasing," he said, adding that the central bank expects the demand for new banknotes during Dashain this year to increase by almost 20 per cent compared previous Dashain. "NRB had issued new currency notes worth Rs 11 billion during Dashain last year."
The central bank might circulate around Rs 14 billion in new notes in the market this Dashain. However, the central bank will issue new banknotes to financial institutions and public up to September 26 only.
The demand for new currency notes during Dashain is increasing every year also due to expansion of the banking system across the country apart from increase in purchasing capacity of people.
According to the central bank, an individual can exchange new notes upto Rs 27,000 per person.
Different banks and financial institutions have been distributing new banknotes to the public but Nepal Bank, Agricultural Development Bank and Rastriya Banijya Bank are providing the exchange facility of new notes worth only Rs 20,000 from their 16 branches across the country.
The central bank also expects to circulate an additional Rs 4 billion worth of small denomination notes – Rs 5, Rs 10, Rs 20, Rs 50 and Rs 100 – before the Dashain vacation begins.
“We are expecting the demand for small denominations to hit Rs 15 billion this year,” central bank spokesperson Narayan Prasad Poudel said, adding that there will not be a shortage of new notes this year.
The central bank has set up counters at its currency management department at Thapathali and 16 branches of Rastriya Banijya Bank Nepal Bank and Agricultural Development Bank in order to meet such demand. 

Banks to be allowed to sell five more currencies

The central bank is planning to allow banks to trade in 5 more currencies freely further liberalising the foreign exchange regime.
"Nepal Rastra Bank is soon issuing a directive permitting banks to freely trade another 5 currencies," according to a source at the central bank. "The banks will also be allowed to sell Swedish kroner, Danish kroner, Hong Kong dollar, Kuwaiti dinar and Bahrain dinar."
Currently, banks are not allowed too sale but only buy these currencies.
The banks will be allowed to trade 5 more companies freely within the next three weeks, according to the central bank sources.
The Monetary Policy for the current fiscal year 2015-16 had announced to let banks tarde freely more currencies.
The provision will make Nepali migrant easier while travelling to those countries. Currently Nepalis traveling in those countries need to carry US dollar.
According to the bankers, they cannot open nostro accounts in currencies, whose selling rates have not been fixed. A nostro account is an account held by a bank in a foreign currency in another bank.
Likewise, customers also cannot open accounts in these currencies. But the new provision will simplify things for both banks and customers and business deals would become easier.
Currently, US dollar, Euro, British pound, Swiss franc, Australian dollar, Canadian dollar, Singapore dollar and Japanese yen, have been traded freely. Likewise, in recent years the central bank has added Chinese yuan, Qatari rial, Thai baht, Saudi Arabian riyal, UAE dirham, Malaysian ringgit and South Korean won in the freely tradable basket.

US issues redesigned $100 note

The US Federal Reserve has began supplying financial institutions with a redesigned $100 note that incorporates new security features to deter counterfeiters and help businesses and consumers tell whether a note is genuine, according to the US embassy.

The redesigned $100 note includes two new security features: a blue 3-D security ribbon with images of bells and 100s, and a colour-changing bell in an inkwell, it said, adding that the new features, and additional features retained from the previous design like a watermark, offer the public a simple way to visually authenticate the redesigned $100 note. "Consumers worldwide are advised that it is not necessary to trade in older-design $100 notes for new ones."
It is US government policy that all designs of US currency remain legal tender, regardless of when they were issued, it added.

Governor urges Indian envoy to relax Indian Currency ban

The central bank governor has asked the Indian envoy to relax the ban on high denomination Indian currency (IC) notes in Nepal.

In a meeting with Indian ambassador to Nepal Jayant Prasad here today at Nepal Rastra Bank, central bank governor Dr Yubaraj Khatiwada said that a relaxation in the ban on Rs 500 and Rs 1,000 denomination IC notes would help solve the current problems of Indian currency shortage in Nepal.

"A limited and regulated relaxation on the ban of Rs 500 and Rs 1,000 denomination notes in the Nepal-India border could help solve the shortage of IC in Nepal," said Khatiwada, adding that facilitation of exchange of Nepali rupees with Indian rupees through banking channels at the Nepal-India border, and limited relaxation for air passengers to carry high denomination Indian currency notes would also help, though the central bank is, currently, consciously educating people on the ban.

"Due to the rising economy of India in the last one decade, Indian currency is on the way to becoming a regional currency," the governor said. "However, the long-term ban on high denomination IC notes in the neighbouring country would not be practical."

Thanking the Indian government and Reserve Bank of India for helping Nepal manage the demand for Indian currency and allowing to invest in Indian securities through Reserve Bank of India, he apprised the envoy of the problems of migrant Nepali workers in India, who have been facing difficulties in remitting due to lack of identity cards. "They have not been able to remit their earnings easily," Khatiwada said.

On the occasion, they also discussed on cooperation between Nepal Rastra Bank and Reserve Bank of India, demand and supply of Indian currency in Nepal, and payment system between the two neighbours.

As per an agreement between the two countries, the government has banned the use of Indian currency notes of Rs 500 and Rs 1,000 denominations for more than a decade to check smuggling and pushing of counterfeit Indian currency into India.

The Indian envoy, on the occasion, assured to raise the issues of smooth passage for remittance from India and troubles of Nepali traders due to the ban on high denomination IC notes. He also promised to facilitate easy supply of cash through ATMs of Indian banks.

History of Nepali paper currency

Shyam Khatiwada has brought a collection worthy book 'Glimpses of Nepalese Paper Currency'.
Going by the name the books, it seems that the book covers only the history of Nepalis paper currency but the book, a product of hard work by the author, covers also the history of Nepalis coins, from the very first coin of Nepal issued by Lichhivi king Mandev to Malla dynasty's coins to silver coins of Dolakha, to the special coins in the near past.
Due to big volume of trade, the demand of currency increased and slowly the government was forced to issue paper currency replacing the coins, he writes before explaining the total number of paper currency notes in circulation and destroyed notes till date.
The book has also covered the history of paper currency in Nepal with their pictures apart from the central bank's history and the office that was responsible to look after the money supply in the country.
Glimpses of Nepalese Paper Currency' could also be a recorded history of the Nepali economy's vital part, money supply, with its technical aspects like prefix, quantity, date of issue of the paper notes in the country. The book also teaches how to recognise counterfeit notes, has pictoral collection of defective notes, fancy currency notes like notes of serial numbers 888888 or 111111, colours, sizes, security features of the Nepali paper currency in a simple and short
description for common readers and those who have interest in paper  currency and numismatic.
The book — that is a complete history of Nepalis paper currency from 1945 AD to 2012 AD — also has the pictures and signatures of the successive governors of the central bank and even before them, the Khajanchis, who were responsible for the issue of notes before the establishment of the central bank.


BOOK REVIEW
Book: Glimpses of Nepalese Paper Currency
Author: Shyam Khatiwada
Published by: Mrs Bhagawati Khatiwada
Price: Rs 1200 (US $30)

Pages: 165