If you’re planning a trip to Nepal, there’s good news. The country relaxed a nearly decade-old restriction on Indian currency, allowing travellers to carry redesigned Rs 200 and Rs 500 notes once again. The move reverses a key restriction that had been in place since India’s 2016 demonetisation and is expected to make travel and cross-border transactions much smoother.
Here’s what you need to know:
What Has Changed?
Nepal allowed Indian and Nepalese nationals to carry Indian currency notes of Rs 200 and redesigned Rs 500 denominations into and out of the country. Earlier, travellers were effectively restricted to carrying only Rs 100 notes, even though the overall limit of Rs 25,000 remained unchanged. The revised rules apply only to Rs 200 and Rs 500 notes issued
on or after November 9, 2016.
How Much Indian Currency Can You Carry?
The maximum amount remains Rs 25,000 per person. This means Indian and Nepalese nationals can now carry up to Rs 25,000 in eligible Rs 200 and Rs 500 notes while travelling between the two countries.
Why Were Rs 200 And Rs 500 Notes Banned Earlier?
After India demonetised Rs 500 and Rs 1,000 notes on November 8, 2016, Nepal barred the entry and use of Indian currency notes above Rs 100. Although India later introduced redesigned Rs 500 notes and new Rs 200 notes, Nepal continued with the restriction for several years.
Can You Carry Old Rs 500 Notes?
No. Only the redesigned Rs 500 notes issued after November 9, 2016, and Rs 200 notes are now permitted. The old pre-demonetisation Rs 500 and Rs 1,000 notes remain prohibited in Nepal.
Who Benefits From New Rules?
According to Nepal Rastra Bank (NRB), the revised provision is expected to benefit indian tourists visiting Nepal, Nepalese citizens travelling to India, traders and businesses engaged in cross-border commerce. The move is expected to make everyday transactions significantly more convenient.
Are There Any Other Restrictions?
Yes. Nepal Rastra Bank clarified that Nepalese nationals cannot bring Indian currency into Nepal from any country other than India. Similarly, they cannot carry Indian currency from Nepal to a third country. Indian currency can only be transported between India and Nepal.
What Are Customs Rules?
The NRB has also reiterated its foreign exchange regulations. Travellers can bring up to USD 5,000, or its equivalent in foreign currency, into Nepal without filing a customs declaration. However, if the amount exceeds USD 5,000, a customs declaration is mandatory upon arrival. The central bank also clarified that Indian currency equivalent to up to USD 5,000 can be brought into Nepal without a declaration only if it is in Rs 100 or lower denominations.
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