Nepal has introduced a major policy shift allowing Indian and Nepalese nationals to carry Indian currency notes of ₹200 and ₹500 denominations, up to a total value of ₹25,000 per person, effective immediately. According to reports from NDTV Profit, PTI, and GKToday, the Nepal Rashtra Bank (NRB) issued a fresh notice clarifying these rules and implementing the changes after nearly ten years of restrictions. The relaxation applies specifically to new currency notes issued after November 9, 2016, marking a significant departure from the previous ban on all Indian currency notes higher than ₹100 denomination that was imposed following India's demonetization exercise in 2016. In a notice reissued on July 23, 2026, the NRB said Indian and Nepalese citizens can now carry Indian ₹200 and ₹500 notes issued on or after November 9, 2016, subject to the existing limit of ₹25,000 per person under current regulations. The NRB notice further added that Indian currency notes issued before November 9, 2016, in denominations of ₹500 and ₹1000 remain prohibited in Nepal, with the bank reissuing the notice to reiterate the rules and clarify any issues related to their implementation.
The revised rule is expected to significantly ease currency-related challenges for Indian tourists and pilgrims visiting Nepal, while also benefiting Nepali medical tourists and migrant workers travelling to India. As reported by NDTV Profit, PTI, and GKToday, India is Nepal's largest trading partner and biggest source of tourists, with thousands of people traveling between the two countries every year. The change addresses a long-standing demand in Nepal, where restrictions on high-value Indian currency had affected tourism, particularly hospitality businesses that cater to Indian visitors. This policy relaxation is expected to act as a major catalyst for boosting cross-border interactions, significantly easing travel and daily financial transactions for small-scale traders and merchants operating along border regions. The decision is expected to boost cross-border travel, trade and financial transactions between the two neighbouring countries, which share an open border and deep economic and cultural ties. NRB spokesperson Guru Prasad Paudel confirmed that the recent changes would aid Indian tourists visiting Nepal and Nepalese citizens who are engaged in trade and business with New Delhi.
The NRB spokesperson Guru Prasad Paudel clarified that Nepalese nationals cannot bring Indian currency into Nepal from any other country other than India, according to PTI and GKToday. Similarly, they cannot carry Indian currency from Nepal to a third country, except India. The latest notice was issued to reaffirm the rules and remove any ambiguity regarding their implementation, as the provision had already been notified through the Nepal Gazette on February 11, 2026 after the required regulations were framed. The NRB also reiterated that Nepalese citizens and foreign visitors can bring up to $5,000 or its equivalent in other foreign currencies into Nepal without making a customs declaration. Any amounts exceeding $5,000 must be declared to customs upon arrival. For Indian currency, travellers can carry an amount equivalent to up to ₹4.83 lakh (USD 5,000) without a customs declaration only if the currency consists of notes with denominations of ₹100 or below, Paudel said. If the amount exceeds the USD 5,000 limit, a customs declaration becomes mandatory.
The latest decision brings a much-needed partial relaxation to those decade-old restrictions, with authorities making it explicitly clear that old design ₹500 and ₹1,000 notes, which were demonetized in 2016, remain strictly invalid and prohibited. India scrapped ₹500 and ₹1,000 notes on November 8, 2016, as part of its demonetisation exercise. The move introduced redesigned ₹500 notes and new ₹2,000 notes, the latter of which has since been withdrawn from circulation. In the aftermath of demonetisation, Nepal banned the circulation and entry of Indian currency notes above ₹100 denomination. While the overall limit of ₹25,000 remained unchanged, travellers could only carry notes of ₹100 and lower. With the revised regulations now in force, Indian and Nepalese nationals can once again carry redesigned ₹500 notes and ₹200 notes issued after November 9, 2016, provided the total value does not exceed ₹25,000. The provisions had already been notified by the NRB through a Nepal Gazette on February 11, 2026, but the bank reissued the notice on July 23, 2026 to reiterate the rules and clarify any issues related to their implementation.
