REPUBLICA
KATHMANDU, Aug 13: Top official of India´s central bank -- Reserve Bank of India (RBI) -- said that RBI was ready to track unauthorized flow of money and investments by Nepalis in India, if Nepal Rastra Bank (NRB) formally requested for it.
“Controlling movement of illicit money is part of our job. We will extend all possible support to NRB to check the flow of illegal money and trace investments made by Nepalis in India if the two governments entered an understanding or we received formal request from NRB,” said RBI Governor Dr D Subbarao.
Such statement from the visiting Indian governor came at a time when NRB has been trying to establish formal ties with the Indian central bank to control capital flight, which grew rampantly in the current political transition.
NRB has been trying to tighten knots against capital flight mainly after its research hinted that corrupt politicians and bureaucrats, and private individuals that amassed huge money through illegal means were parking their earning in India.
Even as a portion of that money is again channelled to third countries, officials say a substantial chunk of such money has been invested in housing and real estate sectors in India.
In this context, Republica had caught up with Dr Subbarao and asked what will be RBI´s response if NRB formally requested for its support to trace and control such investments.
“We will extend full cooperation to NRB,” he replied. Dr Subbarao was in Kathmandu for a two-day visit and Republica interviewed him before he left for India on Saturday.
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