Nepal Eases ₹200, ₹500 Note Rules for Indian Travellers

Nepal has eased Indian currency rules by allowing post-2016 ₹200 and ₹500 notes up to ₹25,000 per person, making cross-border travel, tourism, trade, and business transactions between India and Nepal more convenient.

The rules for carrying the Indian rupee currency have been liberalized in Nepal, permitting both Indian and Nepalese nationals to carry Indian currency of ₹200 and newly introduced ₹500 notes of the Indian government that are dated from November 9, 2016 onwards, up to a value of ₹25,000. This new policy of NRB (Nepal Rastra Bank) is a landmark policy that will facilitate movement, tourism, trade, and business across the border.

The new amendment is in lieu of the restriction that was in effect since the demonetization process of India in 2016, where people could only carry notes of denomination till ₹100. Even though the ceiling limit of ₹25,000 of Indian currency did not change post demonetization, the restriction of higher denomination notes caused much inconvenience to tourists and businessmen who travel from one country to another. The new amendments have made it possible for travellers to carry post 2016 ₹200 and ₹500 notes within the permissible limit.

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The NRB has made it very clear that the Indian currency notes of ₹500 and ₹1,000 issued prior to November 9, 2016, would continue to remain prohibited in Nepal. The NRB has also made it very clear that citizens of Nepal would be allowed to enter Nepal through India and would be able to bring in Indian currency into Nepal; however, they cannot take Indian currency from Nepal to any other third country.

The government believes that the new policy is going to benefit Indian tourists coming to Nepal as well as Nepalese who indulge in business or any other kind of activity in India. Nepal's largest trading partner is India, apart from being the largest source of tourists for Nepal, and thousands of Nepalese are employed and reside in India. It is believed that the relaxation in the currency policy will help in strengthening the bilateral relations of the two countries.

It is also mentioned regarding the other foreign currencies in this notification. Foreign currency up to the amount of US$5,000 can be brought to Nepal by Nepalese citizens as well as tourists without declaring in customs, whereas amounts above this limit need to be declared.

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This new policy regarding the currency is reflective of the rising economic collaboration between India and Nepal and it is anticipated to promote tourism, trade, and international business. By accepting the denominations of currency notes in circulation in India, Nepal has resolved a long-standing problem that has hindered travellers from accessing these denominations for almost a decade. This step will prove to be beneficial for both the countries which have maintained a close association over many years.