Guwahati: Nepal has officially allowed Indian and Nepali citizens to carry Indian currency notes of Rs 200 and Rs 500 denominations across its borders, marking the end of a nearly decade-long restriction imposed after India’s 2016 demonetisation.
The Nepal Rastra Bank (NRB), in a notice reissued on July 23, said Indian and Nepali nationals can now bring into or take out of Nepal Indian currency notes of Rs 200 and Rs 500 issued on or after November 9, 2016, up to a maximum value of Rs 25,000 per person. The move is subject to existing regulations governing cross-border currency movement.
The central bank clarified that the ban on old Indian Rs 500 and Rs 1,000 notes issued before November 9, 2016, remains in force. Those demonetised notes continue to be prohibited in Nepal.
NRB spokesperson Guru Prasad Paudel said the revised rules are expected to make travel easier for Indian visitors while also benefiting Nepali citizens engaged in trade, business and other economic activities with India.
Under the new provisions, Nepali citizens are allowed to bring Indian currency into Nepal only from India. They are not permitted to carry the currency from Nepal to a third country, meaning the use and movement of Indian currency by Nepali nationals is restricted to transactions involving India.
Although the NRB had first notified the revised provisions through the Nepal Gazette on February 11, its latest notice reiterates the rules and provides further clarity on their implementation.
The decision comes in the backdrop of the close economic, cultural and social ties shared by India and Nepal, which have an open border. India is Nepal’s largest trading partner and one of its biggest sources of tourists, while thousands of Nepali citizens travel to India every year for employment, education, business and trade.
The NRB has also retained its existing regulations on foreign currency. Nepali citizens and foreign visitors may bring up to $5,000, or its equivalent in other foreign currencies, into Nepal without filing a customs declaration. Any amount exceeding that limit must be declared to customs upon arrival.
Nepal tightened restrictions on Indian currency after India’s demonetisation in November 2016, when the Indian government withdrew the old Rs 500 and Rs 1,000 banknotes from circulation and introduced redesigned currency notes. Following the move, Nepal allowed only Indian notes up to Rs 100 denomination to be carried across the border.
With the latest decision, Nepal has distinguished between the old demonetised notes and the newer Rs 200 and Rs 500 banknotes issued after November 9, 2016, while setting a per-person limit of Rs 25,000 for carrying the currency across the India-Nepal border.