Central bank raises IC exchange limit

Central bank raises IC exchange limit

The central bank has doubled the Indian Currency (IC) exchange limit for the transport companies and indivisuals visiting India for medical purpose, both. A transport company can exchange upto IRs 50,000 from current IRs 25,000, it said – in a circular here today – adding that an individual who wants Indian Currency for medical treatment in India, can exchange upto IRs 50,000 based on doctors' prescription from the current IRs 25,000. The central bank move is reflection that there is more Indian Currency in the banking channel unlike earlier, when it had tightened the exchange limit due to shortage of IC in the market. The limit has been increased also to ease the supply of Indian Currency in the market and the traders and needy people have been forced to pay more than the fixed rate of 1.60 due to shortage in the past. Likewise, the central bank has also increased withdrawal limit from ATMs in India to IRs 15,000 from current IRs 10,000. However, the monthly withdrawal limit – that is IRs 100,000 – has not been increased. Earlier the central bank had tightened the limit for IC exchange and withdrawals back on March 27, 2011. The central bank sells Indian Currency through its eight offices across the country including Kathmandu office, apart from commercial banks and development banks. The central bank brings IRs 6 billion in cash from the Reserve Bank of India (RBI) every year, apart from the purchasing IC selling US dollars from the market. The central bank has also purchased IC equivalent to Rs 202.46 billion through sale of US dollar over the first eight months of the current fiscal year 2013-14, whereas a year ago, it had purchased IC equivalent to Rs 170.42 billion by selling $1.96 billion.
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