India, Nepal allow nationals to carry INR 500 and 1,000 notes

India and Nepal today lifted a decade-long ban on carrying of Rs 500 and Rs 1,000 Indian bank notes by their nationals while visiting each other's countries by setting a maximum limit of Rs 25,000 for the high denomination currency, benefiting tourists.

"We have decided to allow our nationals to carry Rs 500 and Rs 1,000 denomination notes up to the limit of Rs 25,000," Prime Minister Narendra Modi announced here.

Indian bank notes above Rs 100 were banned in Nepal on India's request as it feared that proliferation of fake currency in high denominations were infiltrating the country.

The new arrangement will benefit tourists from both the countries as they could earlier carry only Rs 100 denomination notes.