After banning the use of Indian currency over the denomination of INR 100, Nepal has now imposed a limitation on the cash withdrawal using the Nepali debit and credit cards in India.
Central Bank of Nepal, also known as the Nepal Rastra Bank (NRB), in a circular imposed limitation of NPR 1,00,000 per month for payments and rendering services in India. But this would not be implemented for the settlement of the hotel bills, hospitals, and drug stores, the circular from the Central Bank of Nepal further said.
The Central Bank of Nepal has justified the move as an attempt to curve the expenditure on unproductive purchases in India, which is generally made on point of sale (POS) system.
The bank took the decision on Tuesday (December 25). On December 13, Nepal decided to ban Indian currency's use above INR 100 denomination.