Koshyari, who was in Kathmandu to attend the first meeting of the eminent persons group from India and Nepal, told the Himalayan Television that "it is up to the people of Nepal to decide whether they wanted Hindu Kingdom to be reinstalled in the country."
"India does not have any say about that," he said.
Nepal was converted into a secular state from a Hindu state in 2008 through a Parliament declaration following the abolition of the 240-year-old monarchy.
According to official figures, over 81 per cent of Nepal's nearly 28 million people are Hindus, followed by 9 per cent Buddhists, 4.4 per cent Muslims and 1.4 per cent Christians.
In another interview to the BBC Nepali service, Koshyari admitted that he met Nepal's deposed king Gyanendra Shah last month during a visit to the country.
Koshyari said he met Shah in the third week of June.
"(Shah) is a citizen of this country and if someone wants to meet me, then it's my duty to meet that person," he said.
Koshyari said he told Shah: "You have so many relations in India, our people directly contact you in case they need any help for marriage etc and you also visit there."
"You have become a basis for unity, you continue to play that role," the BJP leader said of his meeting with Shah.
Koshyari, however, said he has no plans to visit the former king this time.
The Shah dynasty rulers were revered as incarnations of Lord Vishnu and performed public rituals during festivals.
To a question Koshyari said, Nepalese people "are more flexible."
"Even the Communist leaders of Nepal visit Tirupati Balaji temple, when they come to India, but the Maoist leaders of India do not visit Pashupatinath temple, when they come to Nepal," he said.
Koshyari is a frequent traveller to Nepal and enjoys good relations with Nepalese politicians.
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