India has responded positively to the modality devised by Nepal to offer exchange facility to Nepali citizens holding demonetised Indian banknotes of 500 and 1,000 denominations.

A technical team under the leadership of Chintamani Siwakoti, deputy governor of Nepal Rastra Bank (NRB), which is currently in India, handed over the modality to officials of Reserve Bank of India (RBI) on Thursday.

According to the modality, NRB will collect the scrapped Indian notes from Nepali citizens and send them to RBI for verification before offering equivalent exchange in Nepali currency. The modality has set the exchange limit at IRs25,000 per individual.

To avail the facility, Nepalis will have to open accounts in banks, if they don’t have one, and deposit the demonetised Indian banknotes to receive the equivalent exchange directly in their accounts.

“RBI officials, however, asked the Nepali side to make certain changes to the modality,” said Krishna Hari Pushkar, economic minister at Nepali Embassy in India, who was present in the meeting. Refraining from divulging the Indian side’s feedback, Pushkar said meeting would continue for a few more days.