Old 500 and 1000 rupee notes are still in circulation in Nepal which were banned in India in 2016. A syndicate is active in Nepal to circulate these notes which is running this business by deceiving the local people and security agencies. In Nepal, these notes are being circulated in casinos and remote markets.
Indian Currency: The 500 and 1000 rupee notes which were announced to be banned (taken out of circulation) in the country by Prime Minister Narendra Modi on 08 November 2016 are still being used in Nepal. The syndicate which has infiltrated Nepal is doing this business by fooling the local people and security agencies.
In exchange for spending these notes in casinos and remote markets, the note holders are getting one-third or less price. After demonetization in India, Nepal also banned 200, 500, 1000 and 2000 rupee notes in its country except for the Indian 100 rupee note.
Later, Nepal Rastra Bank had informed that 68,147 notes of 500 and 16,552 notes of 1000 were present in various banks of the country. However, people associated with hotels, dhabas, general stores, tour and travel business in Nepal had Indian currency left, for which no clear instructions were received.
An agreement is expected regarding transfer
It has been learned that an agreement is expected regarding transfer of currency from Nepal to India, in anticipation of which the members of the syndicate are working to sell the currency banned in India at very low prices in Nepal.
Many important information has been obtained during interrogation of carrier Ramvinod Sharma who was caught with 199 banned notes of 500 and 1000 rupees on the India-Nepal border in Maharajganj on Wednesday. Raids are also being conducted in search of Surendra Kumar Dubey, a resident of the district, who is associated with the syndicate.
Earlier in May 2018, police had recovered Rs 1 crore 11 lakh in 500 and 1000 rupees from five people in Basti. Two of the arrested people were from Azamgarh and three were from Nepal. The plan was to spend these notes in Nepal.
Apart from this, on June 5, 2018, Ghaziabad police arrested 10 people with one crore old notes being taken to Nepal.
Money exchange and hawala traders also involved
A large number of money exchange and hawala traders are active on the India-Nepal border. They do the work of currency exchange in both the countries. These businessmen have also established their presence in the fish markets and bazaars of the border Indian area and are working to dispose of the demonetised currency notes.
