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Nepal has ended its ten-year prohibition on high-denomination Indian banknotes, allowing individuals to carry Rs 200 and Rs 500 notes up to INR 25,000, easing travel, boosting trade, and addressing concerns of migrant workers and the tourism sector.
Individuals can carry Rs 200 and Rs 500 up to INR 25,000.
New Delhi: Nepal has officially lifted the ban on carrying high-denomination Indian currency, a restriction that has been in place for over a decade. Under the new regulations, individuals can hold Indian banknotes of Rs 200 and Rs 500, up to a maximum of INR 25,000 per person. The decision was announced following a cabinet meeting, reflecting efforts to simplify cross-border travel and trade between Nepal and India. Both Nepali and Indian citizens are now permitted to bring higher-denomination Indian currency into Nepal or carry it back to India.
The move follows amendments made by the Reserve Bank of India to the Foreign Exchange Management Export and Import of Currency Regulations, 2015. These amendments allow Indian, Nepali, and Bhutanese nationals to carry higher-denomination Indian banknotes when travelling across borders. Once the decision is published in the Nepal Gazette, the Nepal Rastra Bank will issue a circular formalizing the use of high-value Indian notes for travel between the two countries.
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The relaxation of currency restrictions is expected to benefit Nepali migrant workers who frequently travel to India for employment. Previously, these workers had to carry earnings in low-denomination notes, exposing them to theft, pickpocketing, and inconvenience during travel. Some were even jailed for carrying Rs 500 and Rs 1,000 notes. Nepal Rastra Bank officials noted that this change addresses a long-standing demand and will reduce the risks faced by workers while facilitating smoother financial transactions.
The decade-long currency restrictions had also negatively impacted Nepal’s tourism and hospitality sectors, particularly casinos and hotels catering to Indian visitors. With high-value notes restricted, Indian tourists could not spend freely, resulting in lower revenue for border towns. Tourism entrepreneurs now expect increased visitor spending and a more seamless travel experience for Indian guests, reducing incidents of arrests or fines due to unawareness of currency rules.
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Officials highlighted that India responded positively to Nepal’s request to ease currency rules, reflecting cooperative efforts to strengthen trade and tourism ties between the two nations. The new regulations are expected to encourage business people and tourists alike to travel more comfortably across the border, promoting economic activity and bilateral exchange.
