Nepal has ended a nearly decade-long restriction on Indian currency, permitting Indian and Nepalese nationals to carry ₹200 and ₹500 notes into and out of the country. The Nepal Rastra Bank (NRB) reissued a notice on 23 July 2026 confirming that notes of these denominations, provided they were issued on or after 9 November 2016, are now allowed up to a limit of ₹25,000 per person. The move reverses a ban imposed in the wake of India’s 2016 demonetisation, which had confined travellers to notes of ₹100 or below.

NRB spokesperson Guru Prasad Paudel clarified that Nepalese citizens may bring Indian currency into Nepal only from India, and may not carry it onward to any third country. The central bank also reiterated that while foreign currency up to USD 5,000 can be brought in without a customs declaration, the same threshold for Indian currency applies only if the notes are of ₹100 denomination or lower; amounts exceeding that limit in higher denominations must be declared.

The restriction had been in place since India scrapped its ₹500 and ₹1,000 notes in November 2016, after which Nepal prohibited the entry and circulation of Indian notes above ₹100. The overall ₹25,000 ceiling remained, but in practice travellers were limited to small denominations. The revised rules now explicitly permit the redesigned ₹500 and ₹200 notes, while pre-demonetisation ₹500 and ₹1,000 notes remain prohibited.

The NRB stated that the provision had already been notified in the Nepal Gazette on 11 February, but the latest notice was issued to remove any ambiguity regarding implementation. According to the central bank, the change is expected to facilitate travel for Indian tourists and support Nepalese traders and businesspeople who transact frequently with India. No further regulatory steps have been announced.