Nepal eases post-demonetisation curbs on Indian currency; allows ₹200, ₹500 notes

Published 26 July 2026 · india

Nepal has allowed Indian and Nepalese nationals to bring into or take out of the country Indian currency notes of ₹200 and ₹500 denominations, ending

Nepal has allowed Indian and Nepalese nationals to bring into or take out of the country Indian currency notes of ₹200 and ₹500 denominations, ending a nearly decade-long restriction under which only notes of up to ₹100 denomination were permitted following India's 2016 demonetisation. The Nepal Rastra Bank (NRB), in a notice reissued on Thursday (July 23, 2026), said Indian and Nepalese nationals may carry Indian currency notes of ₹200 and ₹500 denominations issued on or after November 9, 2016, up to a limit of ₹25,000 per person in accordance with the prevailing regulations. Though the provisions had already been notified through a notice published in the Nepal Gazette on February 11 after the necessary regulations were framed, the NRB reissued the notice to reiterate the rules and clarify their implementation.

Clarifying the new rules, NRB spokesperson Guru Prasad Paudel said on Saturday (July 26) 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 revised provision would facilitate Indian tourists visiting Nepal and Nepalese nationals engaged in trade and business with India. The notice also said Nepalese nationals and foreign visitors can bring up to $5,000 or its equivalent in other foreign currencies into Nepal without making a customs declaration. Amounts exceeding $5,000 must be declared to customs upon arrival. In case of the Indian currency, travellers may bring in an amount equivalent to up to $5,000 (approx ₹4.83 lakh) without making a customs declaration only if the denominations do not exceed ₹100, Mr. Paudel said.

However, if the amount exceeds the $5,000 limit, a customs declaration is mandatory, he added. India demonetised ₹500 and ₹1,000 currency notes on November 8, 2016, replacing them with redesigned ₹500 notes and introducing new ₹2,000 notes, which have since been withdrawn from circulation. Following the demonetisation, Nepal prohibited the entry and use of Indian currency notes of denominations above ₹100. While the ceiling of ₹25,000 on carrying Indian currency remained unchanged, travellers were effectively restricted to notes of ₹100 and below. Under the revised regulations, Indian and Nepalese nationals are now permitted to carry redesigned ₹500 notes and ₹200 notes issued after November 9, 2016, subject to the existing ceiling of ₹25,000.