Nepal has eased restrictions on carrying high-denomination Indian currency, ending a decade-long ban, an official statement said. Individuals can now hold Indian banknotes of Rs 200 and Rs 500 up to a maximum limit of Rs 25,000 per person, following a decision made at Monday’s cabinet meeting.
Under the revised rules, both Nepali and Indian citizens may bring higher-denomination banknotes into Nepal from India or carry them from Nepal to India. The move follows amendments by the Reserve Bank of India to the Foreign Exchange Management (Export and Import of Currency) Regulations, 2015, which allow Indian, Nepali, and Bhutanese nationals to carry higher-denomination Indian currency when travelling across the border.
Nepal Rastra Bank (NRB) spokesperson Guru Prasad Paudel said that once the government decision is published in the Nepal Gazette, NRB will issue a circular legalising the use of higher-denomination Indian banknotes for individuals travelling between the two countries. “This will facilitate tourists as well as businesspeople from both countries. This was our longstanding request, and India responded positively,” Poudel was quoted as saying by the Kathmandu Post.
The restrictions had posed challenges for many Nepalis, particularly migrant workers earning in India, who were often forced to carry earnings in low-denomination notes, making them more vulnerable to theft and pickpocketing. In the past, some Nepalis were even jailed for carrying Rs 500 and Rs 1,000 notes.
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The ban had also negatively affected Nepal’s tourism sector, especially casinos and hospitality businesses catering to Indian visitors. Tourism operators said many Indian tourists were unaware of the currency rules, leading to fines and arrests, and limiting spending in border towns.
The new rules are expected to ease travel and trade between the two countries while boosting business and tourism in Nepal.
