Recently, Nepal declared a ban over the Indian Currency above Rs. 100 and claimed that Indian currency is not yet legal in Nepal. Notes will only be legal in Nepal when they receive a Foreign Exchange Management Act (FEMA) notification from the Indian Government. As the decision is quite bad for both the countries but the legality is very important.
Nepal and Bhutan, both use Indian currency maximally. The decision of Demonetization affect these countries as it affected in India. The people are not allowed to use the currency above Rs 100, so it is affecting people from both the sides. In Nepal, people are suffering for their jobs, as they daily come for work in India. As well as, Indians are affected because they cannot travel or tour the country, if they do so, they need only Rs. 100 or below note to make their payments.
The governments call is truly justified but the people are suffering very badly due to this decision. The decrease in Nepal tourism is affecting negatively to Nepal’s Economy. The tourism is one of the main earning sources of Nepal, as the ban in Indian Currency has almost stopped the whole tourism from India. Nepal has been the favorite destination place for people who like to save their time in traveling, see natural beauty and spend less.
The Indian currency is widely in circulation in Nepal because a huge population of Nepal earns their livelihood from India, especially the border regions of Nepal. But this un-authorization call of currency by the Nepal government has affected the livelihood of all these peoples.
I would ask, is the right step by the government to stop the circulation of money in Nepal, in spite of initiating a call to the India government for making the use of currency as a legal. It might take some time, but taking a measure by the government was very important. Nepal government was definitely aware of the need of their citizens, but leaving them on their own was not an appreciable step.
Taking preventive steps is very good but risking the earnings of such a huge amount of population is not a good call. I’ll say, a friendly relation between both the countries would have been very helpful if Nepal tried to take a call by their own just for the well-being of their peoples.