Nepal allows circulation of Indian Rs 200 and Rs 500 banknotes

Kathmandu / July 23: Nepal Rastra Bank (NRB) has revised its regulations on foreign exchange transactions and currency movement, formally allowing the use of Indian Rs 200 and Rs 500 banknotes in Nepal.

Under the new provisions, Indian citizens may bring into Nepal, take out of Nepal, or exchange up to Rs 25,000 in currently circulating Indian currency, including Rs 200 and Rs 500 notes, per person.

However, Indian Rs 500 and Rs 1,000 notes issued before November 9, 2016, remain prohibited.

The central bank also stated that foreign nationals other than Indian citizens, as well as Nepali citizens, may carry up to US$5,000 or its equivalent in other foreign currencies into or out of Nepal without making a customs declaration. Amounts exceeding this limit must be declared to customs and supported by the required documentation.

NRB further clarified that Nepali citizens are not permitted to carry Indian currency to or from any country other than India.

The central bank said the revised provisions are expected to remove ambiguity surrounding foreign currency transactions, facilitate travel for Indian tourists visiting Nepal, and strengthen the implementation of foreign exchange and anti-money laundering regulations.