Ample stocks of new banknotes assured

KATHMANDU, SEP 11 -

Nepal Rastra Bank (NRB) has planned to increase the supply of new currency notes by 20 percent considering the usual surge in demand for crisp paper money during the Dashain festival.

According to the central bank, Rs 40 billion worth of new notes will be added to the Rs 200 billion worth of paper money currently in circulation. The size of the increase has been based on past trends, said a senior NRB official.

NRB has supplied currency notes of necessary denominations to its branches throughout the country. “The distribution of new notes to all the seven branches has been completed,” said a senior NRB official. “Within a few weeks, inter-branch transfers of the currency notes will also be completed.” According to him, demand from the Pokhara branch is a little higher than from other parts of the country. The central bank plans to fulfil the requirement within 15 days, he added.

Similarly, branches of Nepal Bank and Rastriya Banijya Bank in 66 districts have received new notes. Demand for fresh banknotes soars during the Dashain festival to give as gifts. “We have ample stocks of currency notes of all denominations,” said Bhasker Mani Gnawali, NRB spokesperson. “People will have no problem getting as much fresh notes as they want. We are in a position to even meet additional demand instantly,” added Gnawali.

A shortage of banknotes during Dashain three years ago has been blamed for a fall in public trust in banks and financial institutions (BFIs). When the note crisis hit BFIs ahead of Dashain, NRB was kept busy issuing apologies for the delay by the printing company.

A senior NRB official said that NRB had enough stock of currency notes for three years. “We have enough banknotes for three

years in our vault,” said the official. “So there is no possibility of a shortage.”

Source: The Kathmandu Post