Nepal has allowed Indian and Nepali nationals to carry Indian currency notes of Rs 200 and Rs 500 denominations worth up to Rs 25,000 into or out of the country, ending a nearly decade-long restriction under which only notes of up to Rs 100 denomination were permitted following India’s 2016 demonetisation.
Indian currency notes of Rs 500 and Rs 1,000 denominations issued before November 9, 2016, remain prohibited in Nepal, according to a notice issued by the Nepal Rastra Bank (NRB).
The central bank issued the fresh notice to reiterate the restrictions and clarify their implementation, although the rules had already been notified in the Nepal Gazette on February 11.
NRB spokesperson Guru Prasad Paudel, while explaining the revised provisions on Saturday, said Nepali citizens are permitted to bring Indian currency into Nepal only from India.
Likewise, they cannot carry Indian currency from Nepal to any third country other than India.
According to Paudel, the new provision will facilitate trade, business and travel between Nepal and India, benefiting Nepali citizens engaged in commercial activities with India as well as Indian tourists visiting Nepal.
The latest move eases restrictions on the movement of Indian currency between the two neighbouring countries, which share an open border and close people-to-people ties.
Thousands of Nepali citizens work, study and conduct business in India, which is Nepal’s largest trading partner and a major source of tourists.
The notice also stated that foreign visitors and Nepali citizens may enter Nepal carrying up to $5,000 or its equivalent in other foreign currencies without making a customs declaration. Amounts exceeding $5,000 must be declared upon arrival.
On November 8, 2016, India demonetised Rs 500 and Rs 1,000 banknotes, replacing them with redesigned Rs 500 notes and new Rs 2,000 notes. The Rs 2,000 notes have since been withdrawn from circulation.
Nepal had restricted the use and movement of old Indian currency notes following the demonetisation exercise.
