Nepal Announces New Currency Regulations Following India's Demonetization Nepal’s central bank has introduced new rules allowing Indian and Nepalese citizens to carry up to ₹25,000 in cash across borders. The policy permits the use of ₹200 and ₹500 notes, which were previously restricted due to India’s 2018 demonetization drive. However, the ban on ₹1,000 notes remains in place, as these denominations were invalidated by the Indian government in November 2018. The updated guidelines clarify that only notes issued after November 9, 2018, will be accepted for cross-border transactions. The decision follows significant disruptions caused by India’s demonetization, which targeted ₹500 and ₹1,000 notes. Nepal initially imposed a ban on higher-denomination Indian currency, requiring travelers to exchange money into local Nepalese rupees or U.S. dollars. This led to complications for tourists and traders, with reports of Indian visitors being detained for carrying restricted notes. The Nepalese business association highlighted the negative impact on tourism and trade, citing reduced spending by Indian tourists and logistical challenges for cross-border commerce. Nepal’s parliament debated the issue extensively, balancing economic concerns with the need to ease travel and trade between the two neighboring countries. The new rules aim to streamline currency exchange and reduce bureaucratic hurdles. Under the policy, Indian citizens can now carry ₹200 and ₹500 notes for travel to Nepal, while Nepal’s own currency remains unaffected. However, the ban on ₹1,000 notes persists, and Nepal has also restricted the import of Indian currency from third countries. The policy reflects Nepal’s efforts to mitigate the economic fallout of India’s demonetization while maintaining control over its financial systems.#india #nepal_parliament #nepal_central_bank #demonetization_2018 #nepalese_rupee
