NEW DELHI: Nepal has eased restrictions on the movement of Indian currency, allowing Indian and Nepali citizens to carry Indian Rs 200 and Rs 500 notes issued after November 9, 2016. According to the Nepal Rastra Bank (NRB), the permitted notes can be carried into or taken out of Nepal up to a limit of Rs 25,000 per person.According to news agency PTI, the revised rules permit citizens of both countries to bring the approved currency notes into Nepal, carry them within the country, or take them out, subject to existing regulations.In its latest notice, the NRB clarified that older Indian currency notes issued before the 2016 demonetisation period will continue to remain prohibited in Nepal.
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The NRB added that only redesigned Indian Rs 500 notes and Rs 200 notes introduced after November 9, 2016, will be permitted under the new arrangement.The central bank had initially published the provision in the Nepal Gazette on February 11. However, it issued another notice on Thursday to clarify the implementation process and address concerns over cross-border currency movement.NRB spokesperson Guru Prasad Paudel said Nepali citizens would not be allowed to bring Indian currency into Nepal from countries other than India. He also clarified that Indian currency taken out of Nepal by Nepali citizens could only be carried to India and not to any third country.The new provision would facilitate Indian tourists visiting Nepal and Nepalese nationals engaged in trade and business with India, said Paudel.The rule change comes after years of restrictions introduced following India’s demonetisation announcement on November 8, 2016, when the old Rs 500 and Rs 1,000 notes were withdrawn from circulation.Following the move, Nepal had restricted the use and movement of those discontinued Indian notes due to concerns over their circulation and financial impact.The latest decision affects cross-border transactions between India and Nepal, which share an open border and extensive economic links. India remains Nepal’s largest trading partner and a key source of tourists, while thousands of Nepali citizens travel to India for work, education and business.The NRB also stated that Nepali citizens and foreign visitors can bring foreign currency worth up to $5,000, or its equivalent in other currencies, into Nepal without filing a customs declaration. Amounts above that threshold must be declared upon arrival.
