Summary of this article
Nepal allows Rs 200, Rs 500 Indian notes after 2016 demonetisation restrictions.
Travellers can carry Indian currency up to Rs 25,000 per person.
Old Rs 500, Rs 1,000 notes remain prohibited under Nepal rules.
Travellers between India and Nepal can now carry higher denomination Indian currency notes, as Nepal has allowed the use of Rs 200 and Rs 500 notes issued after November 9, 2016. The move eases restrictions introduced after India’s 2016 demonetisation, when Nepal had permitted only Indian currency notes of up to Rs 100 denomination.
According to a Nepal Rastra Bank (NRB) notice, Indian and Nepalese nationals can carry Indian currency notes of Rs 200 and Rs 500 denominations while entering or leaving Nepal. The limit for carrying Indian currency remains unchanged at Rs 25,000 per person.
The revised rule applies to redesigned Rs 500 notes and Rs 200 notes issued after November 9, 2016, as reported by PTI. However, old Rs 500 and Rs 1,000 notes issued before the demonetisation period will continue to remain prohibited in Nepal.
Why Were Higher Denomination Notes Restricted
India announced the demonetisation of Rs 500 and Rs 1,000 currency notes on November 8, 2016, which resulted in the withdrawal of old high-value notes from circulation. Following the move, Nepal restricted the entry and use of Indian currency notes above Rs 100.
Although the overall limit for carrying Indian currency remained at Rs 25,000 per person, travellers were effectively restricted to smaller denomination notes as Rs 200 and Rs 500 notes were not allowed.
Rules For Carrying Indian Currency From Nepal
Nepal Rastra Bank spokesperson Guru Prasad Paudel clarified that Nepalese citizens cannot bring Indian currency into Nepal from countries other than India. Similarly, Indian currency cannot be taken from Nepal to any third country except India.
The clarification prevents the movement of Indian currency through Nepal to or from third countries.
The NRB also stated that Nepalese nationals and foreign visitors can carry up to USD 5,000 or its equivalent in other foreign currencies into Nepal without a customs declaration. Amounts above this limit must be declared to customs authorities.
For Indian currency, travellers can carry an amount equivalent to up to USD 5,000 (around Rs 4.79 lakh) without declaration only if the notes are of denominations up to Rs 100. If the amount exceeds the prescribed limit, a customs declaration will be required.
The revised rules are expected to make travel and cross-border transactions easier between India and Nepal. The two countries share close economic ties, with India being one of Nepal’s largest trading partners and a major source of tourists and business activity.
