After about 10 years, Nepal has taken a big decision regarding Indian ₹ 200 and ₹ 500 notes. Now Indian and Nepali citizens will be able to travel in Nepal with Indian notes of ₹ 200 and ₹ 500. However, for this a limit of ₹ 25,000 per person has been fixed. This relief comes almost a decade after the ban was imposed after India’s demonetization in 2016.
Nepal Rastra Bank (NRB) said in a notice re-issued on Thursday that Indian and Nepali citizens can bring or carry with them ₹200 and newly designed ₹500 Indian notes issued after November 9, 2016, up to a maximum of ₹25,000. This permission has been given under the existing rules.
Although, this rule had already been published in Nepal Gazette on February 11, but now Nepal Rastra Bank has tried to remove any kind of confusion among the people by issuing it again.
To whom will the new rules apply?
Nepal Rastra Bank spokesperson Guru Prasad Paudel said that Nepalese citizens cannot come to Nepal with Indian currency from any country other than India. Similarly, they cannot take Indian currency from Nepal to any third country except India.
According to him, this decision will provide a lot of convenience to Indian tourists coming to Nepal and Nepali businessmen doing business with India.
Rules for bringing foreign currency are also clear
According to the new rules, Nepali citizens and foreign tourists can bring a maximum of US$ 5,000 (or foreign currency equivalent) into Nepal without making a customs declaration. If a person brings more foreign currency than this, he will have to declare it at the customs department upon reaching Nepal.
The same rule will apply in case of Indian currency also. However, Indian currency equivalent to US$5,000 (about ₹4.83 lakh) can be brought without customs declaration only if all the notes are in denominations of ₹100 or less. If the amount exceeds this, customs declaration will be necessary.
There was a ban after the demonetization of 2016
The Government of India demonetized old notes of ₹500 and ₹1,000 on 8 November 2016. After this, new designed ₹ 500 notes and ₹ 2,000 notes were issued. Later ₹2,000 notes were also taken out of circulation.
After demonetization, Nepal had banned the use and entry of all Indian notes larger than ₹100. Although the maximum limit for carrying Indian currency was earlier also ₹25,000, people could only carry ₹100 or smaller notes.
Which notes will be valid now?
Under the amended rules, ₹200 and newly designed ₹500 notes issued after November 9, 2016 will now be allowed to be taken into Nepal. But the ban on old ₹500 and ₹1,000 notes issued before 8 November 2016 will continue as before.
India-Nepal travel and business will benefit
This decision is expected to boost travel, tourism and cross-border transactions between India and Nepal. There is an open border between the two countries and there have been strong social and economic relations between the people for a long time. India is Nepal’s largest trading partner and also a major source of tourists coming to Nepal. At the same time, a large number of Nepali citizens live in India and work, study and do business.
