Nepal eases curbs on high-denomination Indian currency; ₹200, ₹500 notes allowed up to ₹25,000

Nepal has eased restrictions on carrying high-denomination Indian currency, allowing individuals to hold Indian banknotes of ₹200 and ₹500 up to a limit of ₹25,000 per person.

The decision was taken at a cabinet meeting on Monday, PTI reported citing people aware of the development.

Under the revised provision, both Nepali and Indian citizens will be allowed to bring higher-denomination Indian banknotes into Nepal from India or carry them from Nepal to India.

The move follows amendments by the Reserve Bank of India (RBI) to the Foreign Exchange Management (Export and Import of Currency) Regulations, 2015, which now permit Indian, Nepali and Bhutanese nationals to carry higher-denomination Indian currency while travelling to and from India.

Nepal Rastra Bank (NRB) spokesperson Guru Prasad Paudel said once the cabinet decision is published in the Nepal Gazette, the central bank will issue a circular to formally legalise the use of higher-denomination Indian banknotes by individuals travelling between the two countries.

The decision is expected to facilitate travel and business activities between India and Nepal, benefiting tourists as well as traders and workers on both sides.

“This was our longstanding request and India responded positively,” Paudel was quoted as saying by The Kathmandu Post.

He said a large number of Nepalis travel to India for work and other purposes, and the currency restrictions had created difficulties for a long time, particularly for migrant workers.

According to reports, many Nepali migrant workers were forced to bring their earnings home in low-denomination notes, making them vulnerable to theft and pickpocketing during travel.

Several Nepali citizens have also been jailed in the past for carrying ₹500 and ₹1,000 Indian notes, which were banned earlier.

The restrictions had also hurt Nepal’s tourism sector, especially casinos and hospitality businesses that cater to Indian visitors. Tourism entrepreneurs have said that many Indian tourists were unaware of the currency rules, leading to frequent arrests and fines and discouraging spending in border towns.