Nepal lifts ban on Indian ₹200, ₹500 notes after nearly a decade

Updated - July 26, 2026 11:43 am IST - Kathmandu

PTI

Nepal has permitted Indian and Nepalese nationals to bring into or take out of the country Indian currency notes of ₹200 and ₹500 denominations, ending a nearly decade-long restriction that allowed only notes of up to ₹100 denomination following India's 2016 demonetisation.

The Nepal Rastra Bank (NRB), in a notice reissued on Thursday (July 23, 2026), stated that Indian and Nepalese nationals may carry Indian currency notes of ₹200 and ₹500 denominations issued on or after November 9, 2016, up to a limit of ₹25,000 per person, in accordance with prevailing regulations.

Though the provisions had already been notified through a notice published in the Nepal Gazette on February 11 after the necessary regulations were framed, the NRB reissued the notice to reiterate the rules and clarify their implementation.

Clarifying the new rules, NRB spokesperson Guru Prasad Paudel said on Saturday (July 26) that Nepalese nationals cannot bring Indian currency into Nepal from any country other than India. Likewise, they cannot carry Indian currency from Nepal to a third country, except India.

He said the revised provision would facilitate Indian tourists visiting Nepal and Nepalese nationals engaged in trade and business with India.

Key Provisions of the Revised Regulations

• Permitted denominations: ₹200 and ₹500 notes issued on or after November 9, 2016
• Limit: Up to ₹25,000 per person
• Prohibited notes: Indian currency notes of ₹500 and ₹1,000 denominations issued before November 9, 2016, remain prohibited in Nepal

Foreign Currency Rules

• Nepalese nationals and foreign visitors can bring up to $5,000 or its equivalent in other foreign currencies into Nepal without making a customs declaration
• Amounts exceeding $5,000 must be declared to customs upon arrival

Indian Currency and Customs Declaration

• Travellers may bring Indian currency equivalent to up to $5,000 (approx ₹4.83 lakh) without a customs declaration only if the denominations do not exceed ₹100
• If the amount exceeds the $5,000 limit, a customs declaration is mandatory

Background

India demonetised ₹500 and ₹1,000 currency notes on November 8, 2016, replacing them with redesigned ₹500 notes and introducing new ₹2,000 notes, which have since been withdrawn from circulation.

Following the demonetisation, Nepal prohibited the entry and use of Indian currency notes of denominations above ₹100. While the ceiling of ₹25,000 on carrying Indian currency remained unchanged, travellers were effectively restricted to notes of ₹100 and below.

Expected Impact

The move is expected to facilitate travel and cross-border transactions between India and Nepal, which share an open border and close people-to-people ties. India is Nepal's largest trading partner and a major source of tourists, while thousands of Nepalese citizens live, work, study, and conduct business in India.

Published - July 26, 2026 11:33 am IST