Nepal seeks to regulate money withdrawals in India
June 22nd, 2010 - 4:34 pm ICT by IANS
Kathmandu, June 22 (IANS) Faced with a growing shortage of Indian currency, Nepal’s apex bank has introduced a new regulation to govern the withdrawal of money from Indian banks.
From this week, Nepalis or people living in Nepal who have accounts with Nepali banks can withdraw up to Rs.200,000 per month in India using automated teller machines (ATM).
Earlier, they could withdraw only Rs.25,000 per visit to India.
“We introduced the regulation from June 18 to ease the shortage of Indian currency in Nepal and to facilitate things,” said Gopal Prasad Kafle, spokesman at Nepal Rastra Bank, the regulating authority.
As per the new regulation, an ATM user can withdraw a maximum of Rs.25,000 at a time or Rs.200,000 within a month.
“However, if the user submits documents with his bank in Nepal to show a valid reason as to why he needs the money - for medical treatment, education or business - then he can withdraw as much as he wants, depending on the discretion of his bank,” Kafle told IANS.
Two Nepal banks are joint ventures with Indian banks. Nepal SBI, which is a joint venture of the State Bank of India, and Everest Bank Ltd, a JV of Punjab National Bank, enable their account holders to use their ATM cards and withdraw money from the partner banks in India.
Standard Chartered Bank account holders can use their ATM cards directly while many other Nepali banks have relations, direct or indirect, with other Indian banks for the benefit of their ATM card holders.
A ballooning trade deficit with India, Nepal’s biggest trading partner, has caused a dearth of Indian currency in Nepal.
On the eve of trips to India, bona fide travellers find it difficult to acquire Indian currency from their banks and there are growing allegations that unauthorised money changers have been charging exorbitant commission.
Money changers at Indian airports, who used to accept Nepali currency, have stopped doing so nearly five years ago.
The NRB regulation is also intended to stop the flight of capital from Nepal.
As per Nepal’s laws, Nepalis can’t invest outside Nepal. However, the law is flouted with impunity by thousands who have investments in India, often under the names of relatives or friends.
- Massive capital flight jolts Nepal - Apr 09, 2011
- Nepal introduces new rules on exchange facilities for Indian rupee - Jun 21, 2010
- Nepal rules out changing exchange rate with India - Jun 07, 2010
- Reliance Mutual bets big on retail investors - Oct 02, 2011
- Illegal money changing booms on India-Nepal border - Jun 05, 2010
- Nepal asks India to lift 1,000-rupee note ban - Jul 11, 2010
- Three caught for cheating ATM users - Apr 25, 2011
- Banks to be held responsible for fake notes in ATMs - Jan 27, 2012
- ICICI Bank customers can now withdraw cash at shops - Jan 18, 2011
- Indians losing millions due to currency ban in Nepal - Jul 10, 2009
- Over Rs.2 lakh withdrawn using cloned ATM cards - Aug 22, 2010
- Two youth held for ATM theft - Mar 06, 2011
- Hi-tech gang of ATM robbers busted - Mar 29, 2012
- RBI to act against banks not beefing up cyber security - Jan 27, 2012
- ATM frauds on the rise in Chandigarh - Nov 24, 2010
Tags: apex bank, atm card, atm cards, automated teller machines, bank ltd, bank of india, banks in india, indian airports, indian banks, indian currency, money changers, nepal rastra bank, nepalis, nrb, regulating authority, rs 200, standard chartered bank, state bank of india, treatment education, valid reason