Nepal Lifts Ban on Rs 200 and Rs 500 Notes for Indian Travellers, Up to Rs 25,000 Allowed
The Nepal Rastra Bank (NRB) has relaxed restrictions on the movement of Indian currency across the border, allowing Indian and Nepalese nationals to carry Indian currency notes of Rs 200 and Rs 500 denominations up to a total value of Rs 25,000 per person. The change applies to notes issued on or after November 9, 2016, the date of India's demonetisation policy.
According to an official notice from the NRB, the previously imposed ban on these denominations has been lifted for travellers. However, Indian currency notes of Rs 500 and Rs 1,000 issued before November 9, 2016, remain prohibited in Nepal. The decision aims to facilitate cross-border travel and trade between the two countries.
Under the new rules, an Indian or Nepalese national can bring into, carry, or take out of Nepal Indian currency notes of Rs 200 and Rs 500 issued after November 9, 2016, up to the limit of Rs 25,000. This must be done in accordance with existing regulations. The NRB clarified that the move aligns with bilateral agreements and aims to reduce inconvenience for travellers.
Apart from Indian currency, the NRB allows Nepalese nationals and foreign visitors to bring up to $5,000 in other foreign currencies into Nepal. Travellers are advised to declare amounts exceeding this threshold at customs.
The relaxation comes as a relief for Indian tourists and businesspersons who frequently travel to Nepal. Earlier, the restriction on Rs 200 and Rs 500 notes had caused confusion, as these denominations are commonly used in India. The updated policy simplifies currency exchange and reduces the need for alternative modes of payment.
It is noteworthy that the Indian government's demonetisation in 2016 invalidated older high-value notes, leading Nepal to initially ban the new Rs 200 and Rs 500 notes over concerns of forgery. The NRB's latest move signals improved regulatory coordination between the two nations.
Travellers are advised to ensure they carry only post-2016 notes and adhere to the Rs 25,000 limit to avoid legal issues. The NRB has warned that violations may lead to confiscation of currency and penalties.
