Gorkhatimes

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Nepal suffers cash shortage ahead of festival

Posted by Ramesh Khati on September 24, 2009

KATHMANDU — Banks in Nepal have begun rationing cash ahead of the country’s biggest festival of the year, an official said Wednesday, citing a shortage of bank notes.
Demand for cash increases ahead of the three-week Hindu festival of Dashain, starting on Friday, as people shop for food and gifts, and Nepal’s central bank said it had been higher than expected this year.
Some banks in the capital have shut their ATM machines altogether while many have drastically reduced the maximum withdrawal. Some have even started giving customers Indian currency, accepted in some parts of Nepal.
“We are seeing a deficit of high denomination notes due to various problems coming at once,” said Aswini Kumar Thakur, executive director of currency management at the bank.
Thakur said the late arrival of new notes which are printed in France had exacerbated the shortage.
Large queues formed outside those cash machines that remained open and teacher Subhadra Shiwakoti said she waited in line for five hours to withdraw 5,000 rupees.
“This is definitely not enough to get me through the festival season,” she told AFP.

A Nepalese man makes a swing popularly known as "Dashain Ping" in Kathmandu

A Nepalese man makes a swing popularly known as "Dashain Ping" in Kathmandu

KATHMANDU(ANI): Banks in Nepal have begun rationing cash ahead of the country’s biggest festival of the year, an official said Wednesday, citing a shortage of bank notes.Demand for cash increases ahead of the three-week Hindu festival of Dashain, starting on Friday, as people shop for food and gifts, and Nepal’s central bank said it had been higher than expected this year.

Some banks in the capital have shut their ATM machines altogether while many have drastically reduced the maximum withdrawal. Some have even started giving customers Indian currency, accepted in some parts of Nepal.”We are seeing a deficit of high denomination notes due to various problems coming at once,” said Aswini Kumar Thakur, executive director of currency management at the bank.

Thakur said the late arrival of new notes which are printed in France had exacerbated the shortage.

Large queues formed outside those cash machines that remained open and teacher Subhadra Shiwakoti said she waited in line for five hours to withdraw 5,000 rupees.

“This is definitely not enough to get me through the festival season,” she told AFP.

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