In a major move to facilitate cross-border travel and trade, the Nepal Cabinet has allowed both Nepali and Indian citizens to carry high-denomination Indian currency of ₹200 and ₹500. The decision effectively ends a decade-long ban on these banknotes in Nepal, officials confirmed on Monday.

The cabinet decision follows amendments by the Reserve Bank of India (RBI) to the Foreign Exchange Management (Export and Import of Currency) Regulations, 2015, permitting Indian, Nepali, and Bhutanese nationals to carry higher-denomination notes while travelling to and from India. Citizens can now carry up to INR 25,000 per person.

Nepal Rastra Bank (NRB) spokesperson Guru Prasad Paudel stated that once the government’s decision is published in the Nepal gazette, NRB will issue a circular legalising the use of these high-denomination notes. “This was our longstanding request, and India responded positively,” Paudel added.

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The move is expected to benefit migrant workers, tourists, and business people who previously had to rely on low-denomination notes. The ban had made them more vulnerable to theft and pickpocketing, while also restricting spending for Indian visitors, particularly in border towns and the tourism sector.

Tourism and hospitality entrepreneurs noted that the currency restrictions had negatively impacted casinos and other businesses catering to Indian tourists. Many visitors were unaware of the ban, leading to fines, arrests, and reduced revenues in Nepal’s border areas.

Officials believe the policy change will strengthen India-Nepal economic ties, ease the flow of tourism, and improve convenience for travelers and businesses, ensuring smoother transactions along the two countries’ shared border.

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