Kathmandu. India has paved the way for the circulation of high-value Indian currency notes in Nepal. However, this decision will come into effect only after the Nepal Rastra Bank issues a notice to accommodate the Indian decision. The Reserve Bank of India (RBI) has lifted the ban on the issuance of high-value Indian currency notes in Nepal.
With this, passengers coming to Nepal from India or going to India from Nepal can carry Indian notes of more than one hundred rupees. After demonetisation in India in 2016, it was illegal to carry Indian currency notes of more than 100 denominations.
The Foreign Exchange Management (Currency Export and Import) Amendment Regulations, 2025 BS has allowed Nepal and Bhutan to take and import Indian currency notes (except Indian currency notes of more than Rs 100 denomination) to Nepal and Bhutan.
As per the new provision, those travelling to Nepal and Bhutan from India can carry Indian currency notes of more than Rs 100 denomination up to Rs 25,000 while those travelling from Nepal and Bhutan can bring Indian notes worth Rs 100 and above Rs 100. Those travelling to India from Nepal or Bhutan can bring in high-value notes of up to Rs 25,000 denomination of more than Rs 100.
Notes of Nepal or Bhutan can be taken outside India to Nepal or Bhutan. Similarly, the banknotes can be brought to India from Nepal and Bhutan. The latest provision has not been extended to citizens of Pakistan or Bangladesh. Earlier, the government had banned the sale of large Indian currency notes in Nepal. The latest system will come into effect after Nepal Rastra Bank also makes similar arrangement and it will benefit tourists and workers going to India and coming to Nepal from India.
Lately, two thousand rupee notes are also in circulation in India. The Indian currency notes of two thousand denominations will now be available in the Nepali currency market after India allowed the circulation of high value notes in Nepal. Although the Reserve Bank of India (RBI) has allowed large denomination notes to be brought from India or taken to India, these notes are not in circulation in the Nepali market.
With this decision, Nepali citizens will be allowed to carry Indian currency notes of 200 and 500 rupees. The notes can be exchanged at banks and financial institutions. However, goods cannot be bought and sold in the market.
