- Nepal allows Rs 200, Rs 500 Indian notes up to Rs 25,000.
- Move ends decade-long restriction post-2016 demonetisation.
- Nepal seeks India's approval for National ID as travel document.
Nepal has relaxed its restrictions on Indian currency, allowing Indian and Nepali nationals to carry Rs 200 and redesigned Rs 500 Indian currency notes into and out of the country. The move ends a nearly decade-long restriction imposed after India's 2016 demonetisation.
Under the revised guidelines issued by the Nepal Rastra Bank (NRB), Indian and Nepali citizens can now carry Rs 200 and Rs 500 notes issued on or after November 9, 2016, subject to a maximum limit of Rs 25,000 per person and existing regulations.
Following India's demonetisation in 2016, travellers were effectively limited to carrying Indian currency notes of Rs 100 and below, although the overall ceiling of Rs 25,000 remained unchanged.
Pre-Demonetisation Notes Still Not Allowed
The NRB further informed that the Indian Rs 500 and Rs 1,000 bank notes issued before November 9, 2016, shall continue to be prohibited from being brought to Nepal.
Though the amendment regulations were published in the Nepal Gazette on February 11 after the regulatory provisions were completed and approved by the cabinet, the central bank republished the notice on Thursday to guide through the application process and remove confusion about the regulation.
Who Can Carry The Currency?
Speaking about the new norms, NRB spokesperson Guru Prasad Paudel stated that Nepalis are permitted to bring Indian currency into Nepal only from India. Likewise, Indian currency exported out of Nepal by Nepali citizens can only be brought into India and not to a third country.
The updated policy will serve to make cross-border trips and transactions easier for both Indians who visit Nepal and the Nepalis who interact with business and commerce in India, Paudel said.
Foreign Currency Rules Remain The Same
According to the NRB, Nepalis and foreigners can still carry USD 5,000 or its equivalent in other foreign currencies to Nepal without the need to submit a customs declaration. Amounts over USD 5,000 shall have to be declared on arrival.
Paudel added that in the case of Indian currency, travellers may carry an amount equivalent to USD 5,000 without a customs declaration only if the denominations do not exceed Rs 100. If the amount exceeds the prescribed limit, a customs declaration is mandatory.
Why The Rules Were Revised
India demonetised notes of Rs 500 and Rs 1,000 on November 8, 2016. An all-new Rs 500 note replaced the old one and a new Rs 2,000 note, which has since been withdrawn, was introduced into circulation.
In the aftermath of demonetisation, Nepal prohibited the entry and use of Indian currency notes above Rs 100, creating difficulties for travellers and cross-border trade.
Nepal Requests India To Recognise National Identity Card For Travel
Separately, Nepal asked India to consider its National Identity Card (NID) a valid travel document for its citizens travelling to India. The proposal has already been sent to the Indian government through the diplomatic channel, said Tika Ram Dhakal, spokesperson of the Department of immigration.
"We have already sent the proposal to the Ministry of Foreign Affairs via the Home Ministry, and the Foreign Ministry has forwarded it to the concerned authorities of India. We are in touch with the Indian Embassy in Kathmandu regarding the matter and are awaiting a formal response from the Indian side," PTI quoted Dhakal.
If approved, the National Identity Card would be valid as the third document for Nepali travelling to India on land and by air other than the citizenship certificate and passport. Dhakal said Nepal is hopeful of receiving a positive response from India at the earliest.
Currently, Nepali nationals travelling to India, particularly by air, need either a Citizenship Certificate or a Passport. Likewise, Indian nationals travelling to Nepal by air carry either a Passport or a voter identity card.
Nepal rolled out the National Identity Card nationwide in 2018 as part of its efforts to modernise public administration. The government also plans to eventually replace the traditional citizenship certificate with the biometric identity card.
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