Nepal allows up to ₹25,000 in post-2016 Indian notes for Indians, Nepalis

Nepal has permitted Indian and Nepalese nationals to bring into or take out of the country Indian currency notes of Rs 200 and Rs 500 denominations up to a value of Rs 25,000, provided those were issued on or after November 9, 2016.

The Nepal Rastra Bank (NRB), in a notice issued on Thursday, said Indian currency notes of Rs 500 and Rs 1,000 denominations issued before November 9, 2016, remain prohibited in Nepal.

However, Indian currency notes of Rs 200 and Rs 500 issued after November 9, 2016, can be carried, brought into or taken out of Nepal by Nepali or Indian citizens up to a limit of INR 25,000 per person, in accordance with prevailing regulations, it said.

 

Though the provisions were already notified by NRB through a notice published in the Nepal Gazette on February 11, the central bank on Thursday issued the fresh notice reiterating the regulations and clarifying its implementation.

Clarifying the new rules, NRB spokesperson Guru Prasad Paudel said on Saturday 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 new provision would facilitate Indian tourists visiting Nepal and Nepalese nationals engaged in trade and business with India.

The latest move eases restrictions on the movement of Indian currency between the two neighbouring countries, which share close people-to-people ties and an open border.

India is Nepal's largest trading partner and source of tourists, while thousands of Nepalese citizens work, study and conduct business in India.

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

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November 8, 2016, replacing them with redesigned Rs 500 notes and introducing new Rs 2,000 notes, which have since been withdrawn from circulation.

Following the demonetisation, Nepal had imposed restrictions on the use and movement of the old Indian currency notes.