Kathmandu [Nepal], July 24 – Nepal has officially allowed the circulation of Indian ₹200 and ₹500 banknotes easing long-standing restrictions on higher-denomination Indian currency and providing relief to Indian tourists and Nepali workers returning from India.
The Nepal Rastra Bank (NRB) announced the decision in a notice issued on Friday allowing individuals to carry Indian currency notes in denominations of ₹200 and ₹500 provided the total value does not exceed ₹25,000.
Previously although people were permitted to carry up to ₹25,000 in Indian currency under a circular issued last year only ₹100 notes and lower denominations were allowed. The restriction had created difficulties for Indian visitors entering Nepal and Nepali citizens returning after working in India as higher-value Indian banknotes were widely used across the border.
Under the revised arrangement, only Indian ₹200 and ₹500 banknotes issued by the Government of India in November 2016 or later will be permitted. Nepal had restricted the movement of higher-denomination Indian currency after India withdrew old ₹500 and ₹1,000 notes from circulation during its 2016 demonetisation drive.
The central bank said the new policy is expected to remove uncertainty surrounding foreign currency transactions and make travel more convenient for Indian tourists visiting Nepal.
The NRB also said the measure would support the effective implementation of foreign exchange regulations and anti-money laundering laws by providing a clear legal framework for carrying higher-denomination Indian currency into Nepal.
The decision marks a significant easing of cross-border currency rules between the two neighbouring countries while maintaining existing safeguards on the amount of cash individuals may carry.
