The NRB revoked the decision on Wednesday after Commission for the Investigation of Abuse of Authority (CIAA) instructed it to do so pointing at widespread inconveniences faced by public.[break]
NRB had decided to withdraw the banknotes with ex-kings´ portrait after cabinet ministers directed it to do so. Announcing the decision, it had appealed the public to get such notes exchanged from banks and financial institutions by March 14.
It had appointed 150 counters all over Nepal for exchanging such notes starting March 15. However, the decision put general public in trouble as retailers and transporters refused to accept such notes with the notes worth Rs 10 billion still in circulation.
“The central bank had not followed due legal procedures in announcing the decision. Hence, we asked it to scrap it,” said CIAA Secretary Bhagawati Kafle.
According to CIAA, NRB´s instruction to withdraw banknotes with the images of kings by issuing a general notice did not comply with existing law. “Such sensitive notice should be first published in a gazette,” said Kafle.
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