NRB governor proposes India to form joint technical team

Kathmandu, June-17 Governor of Nepal Rastra Bank (NRB) Chiranjibi Nepal has proposed India to form a joint technical committee to address a number of issues and foster mutual cooperation in financial sector.

Nepal made the proposal with his Indian counterpart Raghuram Rajan on the sidelines of the SAARC Finance Group Meeting and SAARC Finance Governors' Symposium in Dhaka on Tuesday, a press release issued by NRB said.

He also said the technical committee is required to address different issues like steps to be taken on capital account convertibility by India, payment on trading, as well as non-tariff barriers at customs points that Nepal has been facing. Governor Nepal also requested Governor Rajan to allow Nepali migrants workers and student to open bank accounts in India by showing flexibility on their identification cards.

Such flexibility will ease formal transaction of Indian currency between the two countries.

Responding to Nepal, Governor Rajan said they would need to hold further discussions on the proposal.

Likewise, Governor Nepal requested his Indian counterpart for allowing Nepalis to deposit Indian notes with denomination of Rs 500 and 1000 in any bank accounts of RBI. Rajan has agreed to implement the same, according to the release.

Source: Republica