Nepal Allows Entry of Indian ₹200 and ₹500 Notes, Eases Post-Demonetisation Curbs

KATHMANDU, July 26: Nepal has eased nearly a decade-old restrictions on Indian currency by allowing Indian and Nepalese nationals to carry Indian ₹200 and redesigned ₹500 notes into and out of the country, subject to a maximum limit of ₹25,000 per person. The Nepal Rastra Bank (NRB), in a notice reissued this week, said the revised rules permit Indian currency notes of ₹200 and ₹500 denominations issued on or after November 9, 2016, in line with existing foreign exchange regulations. The restriction had been in place since India’s demonetisation of ₹500 and ₹1,000 notes in November 2016, after which Nepal allowed only Indian currency notes of denominations up to ₹100. NRB spokesperson Guru Prasad Paudel clarified that Nepalese nationals can bring Indian currency into Nepal only from India and cannot carry it from Nepal to a third country. Likewise, Indian currency cannot be transported from another country into Nepal. The central bank said the revised provision is aimed at facilitating travel, trade and business between the two neighbouring countries. It is expected to benefit Indian tourists visiting Nepal as well as Nepalese citizens engaged in commerce with India. The notification also reiterated that travellers may bring foreign currency worth up to USD 5,000 into Nepal without a customs declaration, while larger amounts must be declared on arrival. Despite the relaxation, Indian ₹500 and ₹1,000 notes issued before November 9, 2016, remain prohibited in Nepal. The move is expected to further strengthen cross-border travel and economic exchanges between India and Nepal, which share an open border and longstanding cultural, economic and people-to-people ties.