Nearly a decade after restrictions were imposed following India’s 2016 demonetisation, Nepal has relaxed its rules on Indian currency, allowing Indian and Nepali citizens to carry ₹200 and ₹500 notes into and out of the country. The move is expected to make travel, tourism and cross-border trade much more convenient for people travelling between the two neighbouring nations.
The revised regulations have been issued by the Nepal Rastra Bank (NRB) and are aimed at simplifying the movement of Indian currency while retaining safeguards against misuse.
What Has Changed?
Under the new rules, Indian and Nepali nationals can now carry Indian currency notes of ₹200 and ₹500 denominations, provided the notes were issued on or after November 9, 2016.
The total value of Indian currency that can be carried remains capped at ₹25,000 per person. The relaxation applies to both entering and leaving Nepal, making travel significantly easier for visitors who previously had to rely mainly on ₹100 notes.
Why Were These Notes Earlier Restricted?
Following India’s demonetisation on November 8, 2016, Nepal imposed restrictions on Indian currency notes above the ₹100 denomination.
Although India later introduced redesigned ₹500 notes and new ₹200 notes, Nepal continued to permit only ₹100 notes for several years due to regulatory and implementation issues.
The latest notification officially removes this long-standing restriction for the newer currency notes.
Old ₹500 And ₹1,000 Notes Still Not Allowed
The relaxation does not apply to old Indian currency notes.
According to the NRB, ₹500 and ₹1,000 notes issued before November 9, 2016, remain prohibited in Nepal. Only the redesigned ₹500 notes and the newer ₹200 notes issued after demonetisation are permitted under the revised regulations.
The ₹25,000 limit on carrying Indian currency also remains unchanged.
Other Important Rules Travellers Should Know
The revised regulations continue to impose certain restrictions on the movement of Indian currency.
Nepali citizens are permitted to bring Indian currency into Nepal only from India. Similarly, they cannot carry Indian currency from Nepal to any third country other than India.
Apart from Indian currency, Nepali citizens and foreign travellers may carry up to US$5,000, or its equivalent in other foreign currencies, without making a customs declaration. Amounts exceeding this limit must be declared at customs.
Boost For Tourism And Trade
The policy change is expected to benefit thousands of Indian tourists visiting Nepal every year, as well as Nepali citizens engaged in trade, business and employment in India.
With India being Nepal’s largest trading partner and one of its biggest sources of tourists, the easing of currency rules is likely to simplify cross-border transactions and improve convenience for travellers on both sides of the border.
Summary
Nepal has allowed Indian and Nepali citizens to carry post-November 9, 2016 ₹200 and ₹500 Indian currency notes up to a limit of ₹25,000 per person. While the move eases travel and trade between the two countries, old ₹500 and ₹1,000 notes issued before demonetisation remain prohibited, and existing limits on carrying Indian currency continue to apply.
