Nepal has eased its currency regulations by allowing Indian and Nepali citizens to bring into and take out of the country Indian currency notes of ₹200 and redesigned ₹500 denominations, marking a significant relaxation of restrictions that had been in place since India's 2016 demonetisation. The revised rule is expected to make travel, tourism, and cross-border trade more convenient between the two neighbouring countries.
Under the updated regulations issued by the Nepal Rastra Bank (NRB), Indian and Nepali nationals are permitted to carry these denominations, provided the total value does not exceed ₹25,000 per person. The permission applies only to ₹200 notes and redesigned ₹500 notes issued on or after November 9, 2016. Older ₹500 and ₹1,000 notes issued before demonetisation remain prohibited in Nepal.
The move effectively ends nearly a decade of restrictions that followed India's demonetisation of high-value currency notes in November 2016. Since then, travellers were largely limited to carrying Indian currency notes of lower denominations, creating inconvenience for tourists, business travellers, and residents living along the India-Nepal border.
According to Nepal Rastra Bank, the revised policy is aimed at facilitating smoother financial transactions between the two countries while maintaining safeguards against the movement of invalid currency. The central bank has also clarified that Nepali citizens may bring Indian currency into Nepal only from India and cannot carry it onward to a third country. Similarly, Indian currency transported out of Nepal must be taken only to India.
The policy change is expected to benefit thousands of Indian tourists who visit Nepal every year, as well as Nepali citizens engaged in trade, business, education, and family visits across the open border. With easier access to commonly used Indian currency denominations, cross-border purchases and travel-related expenses are likely to become more convenient.
Apart from Indian currency, Nepal's foreign exchange rules remain unchanged. Travellers are still allowed to carry other foreign currencies within the limits prescribed by Nepal's customs and foreign exchange regulations, with declarations required for amounts exceeding the permitted threshold.
The decision reflects the close economic relationship between India and Nepal, which share an open border and extensive people-to-people ties. By allowing the circulation of redesigned ₹200 and ₹500 notes within the prescribed limit, Nepal has taken another step toward simplifying cross-border travel and strengthening economic cooperation between the two countries.
