Nepal has lifted a nearly 10-year-old restriction by allowing Indian and Nepalese nationals to carry Indian ₹200 and redesigned ₹500 notes into and out of the country, the Nepal Rastra Bank announced. This change ends a ban on Indian currency notes above ₹100 denomination that was imposed after India's 2016 demonetisation. The existing limit of ₹25,000 per person remains in place, according to livemint.com.
The restriction was introduced in the aftermath of India's demonetisation move in November 2016, when Nepal banned the circulation and entry of Indian currency notes above ₹100 denomination. The Nepal Rastra Bank's recent decision permits Indian and Nepalese citizens to carry ₹200 and ₹500 notes issued on or after November 9, 2016. This update reflects a regulatory adjustment to facilitate cross-border currency movement between the two countries, livemint.com reported.
The move is significant given the close economic and cultural ties between India and Nepal, where Indian currency is widely used. The ban on higher denomination notes had complicated transactions and travel for many citizens. Allowing ₹200 and ₹500 notes aligns with the redesigned Indian currency notes introduced post-demonetisation and may ease trade and travel. This adjustment follows nearly a decade of restrictions that affected currency circulation in Nepal, according to livemint.com.
The Nepal Rastra Bank's announcement was made public on July 26, 2026, marking a formal policy change in currency regulations between the two countries. The limit of ₹25,000 per person for carrying Indian currency remains unchanged, ensuring continued regulatory oversight. This update is expected to impact cross-border financial transactions and travel for Indian and Nepalese nationals.
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