India’s demand for oil rebounded in 2018 as the country recovered from the shock of demonetization and GST roll out. The country’s consumption of petroleum products rose 4.1% to about 210 million tons, the Oil Ministry said on Friday. The consumption growth in 2017 was 2.7%, the slowest since 2013. A spike in fuel and LPG prices, the liquidity crisis in the NBFC sector, subdued vehicle sales and weak industrial activity affected oil consumption in the last six month of 2018. Diesel consumption, which accounts for 40% of fuel demand in India, increased by 4.3% to 82.7 million tons.
Nepal’s central monetary authority, The Nepal Rastra Bank (NRB) on Friday asked the Reserve Bank of India (RBI) to notify Indian currency notes of Rs 200, Rs 500 and Rs 2,000 as legal tender in Nepal. Under the current rules, the RBI has permitted circulation of Indian currency denominations of Rs 100 and less in Nepal and provides exchange facilities for bills of these denomination. The NRB also asked the Indian central bank to provide exchange facility to Nepalis holding the demonetised Indian currency of Rs 500 and Rs 1,000 notes in the country.
The government has stopped printing Rs 2,000 currency notes on the back of suspicion in the government that the currency note was being used for hoarding, tax evasion and money laundering, ThePrint reported. The Rs 2,000 note was introduced in November 2016 after demonetisation. As of March 2018, the total value of the currency in circulation was Rs 18.03 trillion, of which Rs 6.73 trillion, or 37%, was in Rs 2,000 notes, and Rs 7.73 trillion, approximately 43%, in Rs 500 notes.