Nepal permits travellers to carry 200 and 500 rupee Indian notes
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Kathmandu: In a move designed to ease cross-border travel and trade, the Nepal government has lifted restrictions on the possession of Indian currency notes denominated at INR 200 and INR 500. The decision, taken by the Cabinet on Monday, allows both Indian and Nepali citizens to carry these high-value notes when crossing the border.
The policy shift aligns with a notification issued by the Reserve Bank of India (RBI) on 28 November. The RBI directive permits individuals, excluding citizens of Bangladesh and Pakistan, to carry Indian currency notes exceeding INR 100 when travelling between India and Nepal, subject to a cap of INR 25,000. Minister for Communication and Information Technology, Jagadish Kharel, confirmed the Cabinet's approval following the meeting, stating that the new rule applies to travel in both directions.
This development is expected to resolve a long-standing grievance for travellers and border communities. According to a senior official at the Nepal Rastra Bank, the decision will significantly reduce hassles for Nepali citizens visiting India for medical treatment and for Indian tourists and pilgrims visiting Nepal. Previously, carrying any Indian note above the value of INR 100 was considered illegal in Nepal, leading to frequent scrutiny and difficulties for visitors.
The restrictions on high-value currency were largely a fallout of India’s demonetisation exercise in November 2016, which saw the withdrawal of the old INR 500 and INR 1,000 notes. Following that event, Nepal banned the use of the new series of high-denomination notes within its territory. The central bank data indicates that unexchanged banknotes from the 2016 period, worth over INR 50 million, still remain within Nepal’s banking system.
Residents in border areas have persistently campaigned for this relaxation to facilitate daily economic activities. Historically, Nepal had banned high-value Indian notes since June 2000, briefly lifting the restriction in 2015 before reimposing it following the 2016 demonetisation policy.
(Inputs from IANS)
