Kathmandu. Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel has said that banknotes above Rs 500 cannot be operated in Nepal. In today’s meeting of the Finance Committee, Finance Minister Poudel expressed the intention that India’s consent would also be needed to operate Indian banknotes of more than Rs 500 denomination in Nepal.
“With our decision alone, it is not possible to use Rs 500 notes here. It is not easy as we have to send it back to India and there is no problem in smaller denomination notes,” poudel said. In today’s meeting, the lawmakers raised the issue of high-value Indian banknotes not operating in Nepal and not carrying more than US$ 5,000 and Rs 600,000 in Nepal. In response, Finance Minister Poudel said that there is a provision to bring rs 400,000 without declaring customs duty and rs 600,000 without declaring customs duty. Before India’s demonetisation in 2073 BS, notes above Rs 500 denomination were in circulation in Nepal. But after demonetisation, India did not exchange rupees in Nepal.
In today’s meeting of the committee, Finance Minister Poudel pointed out the need for concluding the Banking and Financial Institutions Act, 2073 (BAFIA) at the earliest. “Bafia Bill should be passed by the committee soon. Let’s discuss the level to which discussion is demanded. It’s not about making hasty decisions. But let’s reach a conclusion soon,” said Finance Minister Poudel. He said that the ministry is ready to provide all kinds of assistance required to finalize the bill at the earliest.
Lawmakers Devendra Poudel and Dr Amresh Kumar Singh tabled the amendment proposal on the BAFIA Bill. Lawmaker Poudel said that the loan policy should be adopted to make it easier for investment through bafia amendment. Similarly, Lawmaker Singh suggested to separate bankers and businessmen to remove conflict of interest, increase lending in productive sectors, adopt a policy to provide loans easily to the general public by ending the use of loans only by certain business houses, and bringing cryptocurrency transactions within the ambit of the law.
Executive Director of Nepal Rastra Bank Guru Prasad Poudel said that around Rs 5.6 trillion has been disbursed to 1.96 million borrowers so far. Similarly, there are around Rs 7 trillion deposits in the banking system at present, he said. He said that the Rastra Bank has given priority to sectoral loans including agriculture, energy, small and medium enterprises and is running a concessional subsidy program targeting farmers and women.
The bill was registered in parliament in March 2018. The bill, which is under consideration of the committee, includes legalising the use of digital currency and digital banking, seeking clarity on the responsibilities of the people on the bank’s board of directors, and discouraging the tendency of taking big loans from banks that own shares themselves.
The bill is also expected to play an important role in making legal provisions for effective management and regulation of banks and financial institutions on the basis of national and internationally developed financial systems, financial instruments, financial security and financial risks.
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