Kathmandu
& New Delhi
December
24, 2025
Nepal has officially ended
a decade-long restriction on Indian currency notes of ₹200 and ₹500
denominations, allowing travelers to carry these higher-value notes across the
open border with a limit of ₹25,000 per person. The decision, approved by the
Nepali Cabinet on December 15, 2025, aligns with recent changes by the Reserve
Bank of India (RBI) and promises to ease daily hardships for millions who cross
the border annually.
The policy shift reverses
measures tightened after India's 2016 demonetization, when Nepal limited legal
carry to notes of ₹100 or below to curb potential misuse. For years, this
forced Nepali workers returning from India to haul bulky stacks of small notes,
heightening risks of theft, while Indian tourists faced spending constraints in
cash-reliant areas.
Relief
for Workers, Tourists and Traders
Nepalese seeking medical
treatment in India, pilgrims and daily border commuters will benefit most
immediately. Indian visitors can now spend more freely in sectors like
hospitality and casinos. Small-scale border trade is also set for a lift, with
smoother transactions reducing reliance on informal exchangers. While old demonetized
notes remain unchangeable, the rules cover current valid series.
The move follows RBI's
amendment to the Foreign Exchange Management (Export and Import of Currency)
Regulations on November 28, 2025, permitting notes above ₹100 up to ₹25,000 for
travel involving Nepal (excluding citizens of Pakistan or Bangladesh). Once
published in the Nepal Gazette, NRB will circulate guidelines to banks, fully
activating the change.
This coordinated step
highlights renewed economic cooperation, facilitating deeper integration across
one of the world's most fluid borders.
For
further reading and official updates:
· Reserve
Bank of India Notifications: https://www.rbi.org.in/Scripts/NotificationUser.aspx
· RBI
A.P. (DIR Series) Circulars: https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx
· Nepal
Rastra Bank Official Site: https://www.nrb.org.np/
· Nepal
Gazette (for upcoming publication): https://rajpatra.dop.gov.np/
India e-Gazette (RBI Amendment): https://egazette.gov.in/
