Nepal Allows ₹200 and ₹500 Notes After 9-Year Restriction
Nepal has lifted a nearly decade-long restriction on Indian currency notes of ₹200 and ₹500 denominations, allowing Indian and Nepalese nationals to carry them into or out of the country. The decision ends a ban imposed following India's 2016 demonetisation, under which only notes of up to ₹100 were permitted.
The Nepal Rastra Bank (NRB), in a notice reissued on Thursday, said that travellers may now carry Indian currency notes of ₹200 and ₹500 denominations issued on or after November 9, 2016, up to a limit of ₹25,000 per person, in line with existing regulations.
Although the provisions were originally notified through a Nepal Gazette notice on February 11, the NRB reissued the notice to reiterate the rules and clarify implementation, said spokesperson Guru Prasad Paudel on Saturday. He emphasized that Nepalese nationals cannot bring Indian currency into Nepal from any country other than India, nor can they carry Indian currency from Nepal to a third country except India.
The revised rules are expected to facilitate Indian tourists visiting Nepal and Nepalese nationals engaged in trade and business, given the strong economic and people-to-people ties between the two nations. India and Nepal share an open border, and India is Nepal's largest trading partner and a major source of tourists. Thousands of Nepalese citizens live, work, study, and conduct business in India.
The NRB notice also clarified rules for carrying foreign currency. Travellers can bring up to $5,000 (approximately ₹4.83 lakh) in foreign currencies into Nepal without a customs declaration. Any amount exceeding $5,000 must be declared. For Indian currency, if the denominations do not exceed ₹100, travellers may bring an amount equivalent to up to $5,000 without declaration. However, if the amount exceeds $5,000, a customs declaration is mandatory.
India demonetised ₹500 and ₹1,000 notes on November 8, 2016, replacing them with redesigned ₹500 notes and introducing new ₹2,000 notes. Following that, Nepal prohibited the entry and use of Indian currency notes above ₹100. While the ceiling of ₹25,000 remained unchanged, travellers were effectively restricted to notes of ₹100 and below.
Under the updated rules, redesigned ₹500 notes and ₹200 notes issued after November 9, 2016, are now permitted, subject to the ₹25,000 ceiling. Notes of ₹500 and ₹1,000 issued before that date remain prohibited in Nepal. The move is expected to ease cross-border transactions and travel between the two countries.
