Nepal has officially lifted a decade-long ban on high-value Indian currency notes, a move that will make life simpler for travellers, traders, and Nepali migrant workers in India. From now on, Indian banknotes of ₹200 and ₹500 are permitted in Nepal, with a total limit of ₹25,000 per person.
The decision was approved at a recent cabinet meeting and will be formalised once the Nepal Rastra Bank issues official guidelines. Previously, only notes of ₹100 and smaller denominations were allowed, creating challenges for individuals carrying wages, savings, or funds for daily transactions. Many Nepalis working in India had to bring their earnings in large quantities of smaller notes, making transport cumbersome and risky. Indian tourists visiting Nepal also faced difficulties while paying for hotels, restaurants, and shopping.
Officials say the new rules will simplify cross-border travel and boost tourism and trade. Border towns that rely heavily on transactions in Indian currency are expected to benefit immediately, as businesses will no longer have to refuse larger notes or break them into smaller denominations.
“The ban made life difficult for both visitors and local traders. Allowing higher denomination notes will improve convenience and strengthen economic ties between India and Nepal,” said a government official.
Experts also note that the move aligns with recent Indian regulations that make it easier for people to carry foreign currency while travelling. With these changes, Nepali workers and traders can now handle their money more efficiently, while Indian visitors will enjoy smoother payments across shops, hotels, and restaurants.
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