Kathmandu, Dec 15 (PTI) Nepal has eased restrictions on carrying high-denomination Indian currency in the Himalayan nation, ending a decade-long ban, according to an official statement.
Individuals can
hold Indian banknotes of Rs 200 and Rs 500 up to a maximum limit of INR 25,000 per person. The decision was made during Monday’s cabinet meeting, according to cabinet sources.
Under the revised provision, both Nepali and Indian citizens may bring the higher denomination bank notes into Nepal from India or carry them from Nepal to India.
The Cabinet decision on Monday follows amendments by the Reserve Bank of India to the Foreign Exchange Management (Export and Import of Currency) Regulations, 2015.
The amendment permits Indian, Nepali and Bhutanese nationals to carry higher-denomination Indian currency while travelling to and from India.
According to Nepal Rastra Bank (NRB) spokesperson Guru Prasad Paudel, once the government decision is published in Nepal gazette, NRB will issue a circular to this effect that would legalise the use of higher denomination Indian bank notes by individuals travelling to Nepal from India or from Nepal to India.
This will facilitate tourists as well as business people from both countries to travel or carry out business with each other’s country.
“This was our longstanding request and India responded positively,” Poudel was quoted as saying by the Kathmandu Post.
“Large numbers of Nepalis travel to India for various purposes, and the currency restrictions have created difficulties for a long time, especially for migrant workers who earn in India.” Many migrant workers are forced to bring home their earnings in low-denomination notes, making them more vulnerable to theft and pickpocketing during travel. A number of Nepalis have also been jailed for carrying Rs 500 and Rs 1,000 notes in the past, the report added.
The restrictions have hurt Nepal’s tourism sector as well, particularly casinos and hospitality businesses that cater to Indian visitors. Without the ability to carry higher-value notes, Indian tourists cannot spend freely, leading to lower revenues in border towns.
Tourism entrepreneurs say many Indians are unaware of the currency rules, leading to frequent arrests and fines. PTI SBP AMS
