Nepal Allows Post-Nov 2016 Indian Currency Notes Up To ₹25,000

Nepal has eased its regulations regarding the cross-border movement of Indian cash. The Nepal Rastra Bank (NRB) said that Nepali and Indian nationals may now carry ₹200 and ₹500 denominations printed after November 9, 2016. Individuals can carry up to a combined ₹25,000.

The NRB stated that the provision applies to Indian currency notes brought into or taken out of Nepal, subject to existing regulations.

The financial regulator maintained a strict ban on older currency. Indian ₹500 and ₹1,000 bills issued prior to November 9, 2016 remain entirely prohibited inside Nepal.

Rules and Trade Impact

Under the updated framework, Nepali nationals may only import Indian cash directly from India. The central bank stated that they cannot take these funds onward to a third nation. Nepali nationals can only move the currency for transactions involving India.

The NRB originally published these provisions in the Nepal Gazette on February 11. Recent official communications aim to clarify how to implement the guidelines.

NRB spokesperson Guru Prasad Paudel said the new "rules would make it easier for Indian visitors travelling to Nepal and support Nepali citizens involved in business and trade with India", as per Moneycontrol.

Both nations share an open border. This boundary facilitates deep economic and social ties, with India operating as Nepal's biggest trading partner and a primary source of tourists. Many Nepali citizens also cross into India for jobs, education and commerce.

Historical Context and Limits

The cash curbs began in November 2016. At that time, India invalidated its ₹500 and ₹1,000 notes, prompting Nepal to restrict their circulation.

Nepal maintains separate limits for other international funds. Citizens and tourists can carry up to $5,000 or an equivalent foreign currency into the nation without declaring it to customs.

The authorities said that any sum exceeding this threshold must be declared upon arrival.