Planning a Nepal Trip? New Rule Allows ₹200 and ₹500 Indian Notes; Here’s What Travellers Need to Know
Planning a Nepal Trip? New Rule Allows ₹200 and ₹500 Indian Notes; Here's What Travellers Need to Know
Nearly a decade after restrictions were imposed following India’s 2016 demonetisation, Nepal has allowed the use of newer ₹200 and ₹500 Indian currency notes, making travel and cross-border transactions easier.
By Vidhi Lalla
Travellers heading to Nepal from India can now carry and use ₹200 and redesigned ₹500 Indian currency notes issued after November 9, 2016, following a major policy change by the Nepal Rastra Bank (NRB). The move ends nearly a decade of restrictions that had limited travellers to carrying only Indian notes of up to ₹100 denomination.
Under the revised rules, both Indian and Nepali citizens are permitted to bring in or take out Indian currency notes of ₹200 and the redesigned ₹500 denomination, while the existing limit of ₹25,000 per person remains unchanged.
The change comes as a relief for tourists, business travellers and people who frequently cross the India-Nepal border. Since the 2016 demonetisation in India, Nepal had prohibited the use of higher-denomination Indian currency notes, making travel inconvenient as visitors had to rely on smaller denomination notes.
The revised rules apply only to ₹200 notes and redesigned ₹500 notes issued after November 9, 2016. Old ₹500 and ₹1,000 notes issued before demonetisation remain prohibited and cannot be carried into or used in Nepal.
The restrictions were originally introduced after India demonetised ₹500 and ₹1,000 notes on November 8, 2016. Although travellers were still allowed to carry Indian currency worth up to ₹25,000, they were effectively restricted to notes of ₹100 or below because higher denominations were not accepted in Nepal.
The Nepal Rastra Bank has also clarified how the revised rules apply to cross-border travel. Nepali citizens cannot bring Indian currency into Nepal from any country other than India. Similarly, Indian currency cannot be taken from Nepal to any third country except India. These provisions are intended to prevent Indian currency from being routed through Nepal to other destinations.
The notification also includes rules for foreign currency. Nepali citizens and foreign tourists can bring up to US$5,000 (or its equivalent in other foreign currencies) into Nepal without filing a customs declaration. If the amount exceeds this limit, travellers must declare it to customs authorities upon arrival.
For Indian travellers planning a holiday, pilgrimage or business visit to Nepal, the revised policy simplifies cash transactions and reduces the inconvenience caused by the earlier denomination restrictions. However, travellers should ensure they carry only the permitted denominations and stay within the prescribed monetary limits to avoid any issues at the border.
Disclaimer: Currency regulations may be revised by the Nepal Rastra Bank or customs authorities from time to time. Travellers should verify the latest rules before travelling internationally.
