Lawmakers Demand Ban on Rs 500 and Rs 1,000 Notes to Fight Black Money and Corruption

KATHMANDU: Lawmakers have called on the government to consider banning Rs 500 and Rs 1,000 denomination notes, arguing that such a move could help control illegal wealth and bring hidden money into the formal banking system.

The issue was raised during Wednesday’s meeting of the House of Representatives, where lawmakers discussed measures to address corruption and undeclared assets.

Rastriya Swatantra Party MP Raises Proposal

Rastriya Swatantra Party (RSP) lawmaker Yagyamani Neupane argued that a currency ban could be an option to deal with large amounts of alleged black money accumulated through corruption.

He said money collected through illegal means over decades had created challenges for good governance and suggested replacing existing high-value notes with new currency.

Neupane referred to India’s past currency reform while urging the government to use provisions under the Nepal Rastra Bank Act if necessary.

Call to Bring Hidden Money Into Banking System

Neupane said banning high-denomination notes could force people holding undeclared cash to either bring it into the banking system or lose its value.

“Immediate note replacement is needed to make hidden money unusable and move the country toward better governance,” he argued.

Support From Nepal Communist Party

Supporting the proposal, Nepal Communist Party chief whip Yubaraj Dulal said his party would support a move toward currency reform.

Dulal said his party was even ready to launch a signature campaign among lawmakers if required.

However, he questioned why the ruling party had not moved forward with such a decision despite being in government.

Debate Over Possible Note Ban

The proposal has started a wider discussion about whether banning high-value currency notes could help control corruption and illegal financial activities.

Supporters argue that reducing large-denomination cash transactions could improve financial transparency, while any such policy would require detailed economic assessment and implementation planning.