Kathmandu- India has lifted the restriction on carrying Indian currency notes above 100 rupees for Nepal-India travel, benefiting Nepal directly.

The Reserve Bank of India amended foreign exchange management rules, allowing individuals to carry high denomination notes, including 2000 and 500 rupees, up to 25,000 Indian rupees across the Nepal-India border.

This simplifies travel for millions of Nepali and Indian commuters, tourists, patients, and small traders. It eliminates the need for small notes and makes payments and expenses easier for tourists.The new rule reduces informal transactions, money exchange hassles, and illegal currency trading, pushing more transactions into the formal banking system.

Nepal had restricted high denomination notes after India demonetized the 500 and 1,000 rupee notes in 2016. This decision ends the inconvenience faced by travelers and traders who were forced to use only small notes.

Nepal Rastra Bank officials say the new RBI policy allows both countries to carry notes under the same terms, reducing the risk of Nepali currency displacement. They expect better financial coordination and progress on long-pending currency exchange issues.

Although the RBI has lifted the restriction, high-value Indian notes won’t be circulated in Nepal immediately. Nepal Rastra Bank will issue its own directive before the new arrangement takes effect.

This decision benefits Nepalis who regularly travel to India for work, treatment, or business, and Indian tourists visiting Nepal.