Kathmandu, Jan. 6 -- The Nepal government has initiated talks with India to make Indian bank notes of denominations higher than INR100 legal tender in the country after banning the use of such notes in the country.

Nepal Rastra Bank (NRB), the central monetary authority of the country on Friday dispatched a letter to the Indian central bank --Reserve Bank of India (RBI), asking it to make Indian bank bills of 200, 500 and 2000 legal tender in Nepal.

The NRB has asked the RBI to issue a foreign exchange management (FEMA) notification which will make Indian bank notes of 200, 500 and 2000 legal tender in Nepal and to provide the exchange facilities to get bills of such denominations. The Indian central bank has only allowed the circulatio...