Nepal Allows Rs 200, Rs 500 Indian Notes Up To Rs 25,000

Nepal has formally allowed Indian and Nepali citizens to carry specific Indian currency notes across its border, establishing a new limit for these transactions. This decision by the Nepal Rastra Bank (NRB) lifts a restriction that had been in place since India’s demonetisation in November 2016.

New Regulations for Indian Currency Across the Border

The updated rules permit individuals to transport up to Rs 25,000 in Indian currency. This applies specifically to denominations of Rs 200 and Rs 500 notes.

• Maximum amount per person: Rs 25,000
• Permitted denominations: Rs 200 and Rs 500 Indian currency notes
• Eligible notes: Only those issued after November 9, 2016
• Who can carry: Indian and Nepali citizens

Regulatory Framework and Implementation Details

These new provisions were initially published in the Nepal Gazette on February 11, 2026, and later reinforced in a fresh circular issued on Thursday. The Nepal Rastra Bank (NRB) is the authority behind these changes.

It is crucial to note that older, higher-value Indian currency notes continue to remain banned. The NRB also specified that Indian currency can only be brought into or taken out of Nepal from or to India, preventing its circulation through third countries.

Impact on Bilateral Travel and Trade

This relaxation of currency restrictions is anticipated to bring significant benefits. It aims to make cross-border transactions more convenient for both Indian tourists visiting Nepal and Nepali traders engaging in commerce with India.

Clarification on Other Foreign Currency Limits

In addition to the Indian currency rules, the notification also clarified regulations for other foreign currencies. Nepali citizens and foreign tourists are now permitted to bring up to 5,000 US dollars or its equivalent without needing a customs declaration.

Any amounts exceeding this 5,000 US dollar threshold require a formal customs declaration upon entry or exit.