Nepal likely to soon allow Indian notes above ₹100, easing travel, tourism

Nearly 10 years after high-denomination notes were banned, Nepal plans to allow Indian notes above ₹100, easing travel for workers, students, pilgrims and tourists, and smoothing trade

Nepal is preparing to permit the circulation of Indian currency notes above ₹100, nearly a decade after high-denomination notes were banned in the Himalayan nation, according to a report by The Kathmandu Post.

 

“We are in the final stages. We are preparing to publish the notice in the Nepal Gazette, and will then issue circulars to banks and financial institutions about the new rule,” Guru Prasad Poudel, spokesperson for the Nepal Rastra Bank (NRB), was quoted as saying.

 

The NRB is the Himalayan nation’s central bank.

 

How will allowing Indian notes above ₹100 help travellers between Nepal and India? 

 

The move is expected to significantly ease currency-related challenges for Nepali migrant workers travelling to India, as well as for students, pilgrims, medical visitors and tourists from both countries. Poudel added that the official date for the new rule has not yet been confirmed but that the process is “in the final stage”.

 

What changed in the RBI rules on carrying Indian currency to Nepal? 

The change follows an amendment by the Reserve Bank of India (RBI) to its Foreign Exchange Management (Export and Import of Currency) Regulations on November 28 this year. Published in India’s official Gazette on December 2, 2025, the revision allows individuals to carry Indian currency notes of any denomination up to ₹100 to Nepal and back. Additionally, they may transport notes above ₹100 up to a total value of ₹25,000 in either direction.

 

Why has Nepal sought relaxation on high-denomination Indian notes? 

The change has been a long-standing demand from Nepal, where restrictions on high-value Indian currency have affected tourism, particularly casinos and hospitality businesses catering to Indian visitors. Many travellers have inadvertently violated the rules, resulting in arrests and fines, according to Kathmandu-based sources familiar with the situation.

 

What are Nepal’s current rules on bringing foreign currency for tourists? 

Currently, tourists visiting Nepal, including Indians, may bring in up to $5,000, or the equivalent in other convertible currencies, without declaration. Amounts beyond this must be declared at customs, and visitors cannot take out more than $5,000. India remains Nepal’s largest source of tourists.

 

How did the restrictions on Indian notes in Nepal evolve after 2015 and demonetisation? 

Historically, the RBI allowed Nepalis to carry ₹500 and ₹1,000 notes up to ₹25,000 in February 2015, following an earlier ban that limited travellers to ₹100 denominations due to security concerns. However, India’s 2016 demonetisation imposed further restrictions. Nepal has also long been seen as a transit point for fake currency that is smuggled into India.

 

Can QR-code payments replace cash for Indian tourists in Nepal’s remote areas? 

Since March 2024, however, Indian tourists have been able to make payments within Nepal using QR codes via mobile apps. While this has improved transactions in urban centres, tourism industry executives say the system remains unreliable in remote areas, making the circulation of high-denomination notes an important development for cross-border travel.