Nepal is set to officially allow the use of Indian currency notes above Rs 100, nearly a decade after such denominations were banned. The move is expected to make cross-border travel and trade much easier between India and Nepal.
Nepal Rastra Bank to Issue Official Notice Soon
The Nepal Rastra Bank (NRB) is in the final stages of issuing a formal notification. The decision will be published in the Nepal Gazette, after which banks and financial institutions will be informed through official circulars.
“We are in the final stages. The notice will be published soon, though the exact date is yet to be confirmed,” NRB spokesperson Guru Prasad Poudel said.
The development just comes after the RBI’s key amendment to its Foreign Exchange Management Regulations on November 28, which was published in India’s official Gazette on December 2, 2025.
Under the revised rules:
- People can carry Indian currency notes of any amount in denominations up to Rs 100 to Nepal and back.
- Notes above Rs 100 can also be carried, up to a total value of Rs 25,000 in either direction.
This regulatory change removed a major hurdle that had blocked Nepal from allowing higher-denomination Indian notes.
Why Indian Currency Notes Were Banned in Nepal Earlier
Nepal had banned high-denomination Indian currency notes after India’s 2016 demonetisation, stating concerns related to fake currency and security risks.
Since then, travellers were allowed to carry only low-value notes, often leading to inconvenience, fines, and even detentions at border points.
Big Relief for Travellers and Migrant Workers
Officials say lifting the restriction will benefit:
- Nepali migrant workers earning in India.
- Students and medical visitors.
- Pilgrims and tourists travelling between the two countries.
“This was a long-standing request from Nepal, and India responded positively,” Poudel said, adding that migrant workers faced the most difficulties due to the currency limits.
Boost Expected for Tourism in Nepal
The move is also expected to give a boost to Nepal’s tourism and hospitality sector, especially in border town and pilgrimage routes.
When Will Nepal Allow Indian Currency Notes
While the decision has been finalised in principle, the official implementation date will be announced once the notification is published in the Nepal Gazette. Authorities have confirmed that the process is in its final stage.
