Nepal has lifted its restrictions on carrying high-denomination Indian currency, marking the end of a decade-long ban. An official statement confirmed that individuals can now possess Indian banknotes of Rs 200 and Rs 500, with a maximum limit of Rs 25,000 per person, following a cabinet decision made on Monday.
Under the newly revised regulations, both Nepali and Indian citizens are permitted to bring these high-denomination banknotes into Nepal from India and vice versa. This change aligns with amendments made by the Reserve Bank of India to the Foreign Exchange Management (Export and Import of Currency) Regulations, 2015, which now allow nationals from India, Nepal, and Bhutan to carry higher-denomination Indian currency while crossing borders.
Guru Prasad Paudel, spokesperson for the Nepal Rastra Bank (NRB), stated that the NRB would issue a circular to legalize the use of these banknotes for travelers once the government’s decision is published in the Nepal Gazette. “This will facilitate tourists and businesspeople from both countries. This has been our longstanding request, and India responded positively,” Paudel was quoted as saying by the Kathmandu Post.
Previously, the ban posed significant challenges for many Nepalis, especially migrant workers earning in India. They were often forced to carry their earnings in lower-denomination notes, increasing their vulnerability to theft and pickpocketing. Some individuals had even faced jail time for carrying Rs 500 and Rs 1,000 notes.
The prohibition had also adversely impacted Nepal’s tourism sector, particularly casinos and hospitality businesses that cater to Indian visitors. Tourism operators reported that many Indian tourists were unaware of the currency regulations, leading to fines and arrests, thereby limiting spending in border towns.
The implementation of these new rules is anticipated to enhance travel and trade between the two nations while boosting both business and tourism in Nepal.
Original Source: https://nenews.in/neighbours/nepal-lifts-decade-long-ban-on-high-denomination-indian-currency/37822/
Category: Neighbours,Nepal,Reserve Bank of India
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Publish Date: 2025-12-16 13:30:00
