Nepal allows post-demonetisation Indian currency in denomination of Rs 200 and Rs 500
New Delhi, July 26: Nepal has allowed its nationals and Indians to carry Indian currency notes of Rs 200 and Rs 500 denominations worth up to Rs 25,000 into or out of the country, provided the notes were issued on or after November 9, 2016, a day after demonetisation was implemented here.
Indian currency notes of Rs 500 and Rs 1,000 denominations issued before November 9, 2016, remain prohibited in Nepal, said a notice issued by the Nepal Rastra Bank (NRB), the central bank of the country.
The latest move eases restrictions on the movement of Indian currency between the two neighbouring countries, which share close people-to-people ties and an open border.
Though the provisions were already notified by NRB through a notice published in the Nepal Gazette on February 11, the central bank issued the fresh notice reiterating the regulations and clarifying its implementation.
Clarifying the new rules, NRB spokesperson Guru Prasad Paudel said on Saturday 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.
Paudel said the new provision would facilitate Indian tourists visiting Nepal and Nepalese nationals engaged in trade and business with India.
India is Nepal’s largest trading partner and source of tourists, while thousands of Nepalese citizens work, study and conduct business in India.
The notice also said Nepalese nationals and foreign visitors can bring up to USD 5,000 or its equivalent in other foreign currencies into Nepal without making a customs declaration.
Amounts exceeding USD 5,000 must be declared to customs upon arrival.
India had demonetised Rs 500 and Rs 1,000 currency notes on November 8, 2016, replacing them with redesigned Rs 500 notes and introducing new Rs 2,000 notes, which have since been withdrawn from circulation.
Following the demonetisation, Nepal had imposed restrictions on the use and movement of the old Indian currency notes. (BVI)
