Himal Hub / The debate over demonetisation has reached Nepal’s Parliament, with lawmakers calling for Rs 1,000 and Rs 500 banknotes to be withdrawn from circulation to bring allegedly illicitly held money into the formal financial system.
Communist Party of Nepal (CPN) lawmaker Yubaraj Dulal has challenged the government to initiate the process of withdrawing Rs 1,000 and Rs 500 notes from circulation.
Dulal expressed support for the proposal after Rastriya Swatantra Party (RSP) lawmaker Yagyamani Neupane called for demonetisation as a measure to bring money allegedly accumulated through corruption and illegally concealed wealth into the banking system.
Speaking at a meeting of the House of Representatives, Dulal said his party would fully support an RSP-led government if it decided to withdraw the existing Rs 1,000 and Rs 500 notes.
He urged the government to begin the process immediately, arguing that withdrawing the high-denomination notes could create an opportunity to bring cash suspected of being held illegally into the formal financial system.
Dulal also said that all federal lawmakers from his party were ready to support the government if their signatures were required to facilitate the implementation of the decision.
“Even if all our federal lawmakers have to sign, I want to announce that we are ready to do so today.”
Dulal urged the government not to delay the issue, saying that demonetisation could help address concerns over money allegedly accumulated through corruption and encourage such funds to enter the banking system.
Earlier, RSP lawmaker Neupane had also raised the issue in Parliament, arguing that Nepal should withdraw Rs 1,000 and Rs 500 notes and introduce new banknotes to bring allegedly illicit wealth into the formal financial system.
Referring to India’s demonetisation exercise, Neupane said Nepal could learn from India’s experience.
The issue has now triggered renewed debate in Parliament over the use of high-denomination currency notes, measures to curb illicit wealth and ways to bring cash outside the formal financial system into banking channels.
