Kathmandu: Nepal has eased long-standing restrictions on Indian currency, allowing both Indian and Nepali nationals to carry Indian ₹200 and redesigned ₹500 notes across the border nearly a decade after the ban was imposed following India’s 2016 demonetization.
The Nepal Rastra Bank (NRB) said that travellers can now bring into or take out of Nepal Indian ₹200 and ₹500 notes issued on or after November 9, 2016, with a maximum limit of ₹25,000 per person.
The central bank reissued the notification on Thursday to clarify how the revised rules should be implemented, although the changes had already been published in the Nepal Gazette earlier this year.
NRB spokesperson Guru Prasad Paudel said that the new rules are aimed at making travel and cross-border trade easier between the two neighboring countries.
Paudel clarified that Nepali citizens can bring Indian currency into Nepal only from India and cannot carry it from Nepal to any third country. Similarly, Indian currency taken out of Nepal can only be carried to India.
The central bank also reaffirmed foreign exchange rules for travelers. Nepali citizens and foreign visitors may bring up to $5,000, or its equivalent in other foreign currencies, into Nepal without declaring it to customs. Any amount above that limit must be declared upon arrival.
For Indian currency, travelers may carry an amount equivalent to up to $5,000 without a customs declaration only if the notes are in denominations of ₹100 or lower. Amounts above that threshold require customs declaration.
Nepal had barred Indian currency notes above ₹100 after India scrapped ₹500 and ₹1,000 notes in November 2016. Although the ₹25,000 carrying limit remained in place, travelers could only use ₹100 notes or lower.
Under the revised rules, redesigned ₹500 notes and ₹200 notes are once again permitted, while old ₹500 and ₹1,000 notes issued before November 9, 2016, remain prohibited.
The decision is expected to benefit tourists, traders, and thousands of people who regularly travel between India and Nepal, which share an open border and strong economic and cultural ties. India remains Nepal’s largest trading partner and one of its biggest sources of visitors.
