The government of Nepal has relaxed its earlier strict policy on the use of Indian currency. According to the new guidelines issued by the Central Bank of Nepal, sources from the State Bank of Nepal (NRB) will now allow Indian citizens to carry a maximum of Rs 25,000 in Nepal. The money can also be taken in the form of Rs 200 and Rs 500 notes, which were earlier banned in the country. This decision will make it easier for Indian tourists to visit Nepal and end the longstanding problem of money laundering.
As per previous rules, only Indian notes of Rs 100 or less were valid in Nepal. Since 2018, the government of Nepal has banned the use of 200 and 500 rupee notes in Indian currency. This forced Indian tourists to carry large bundles of Rs 100 notes while visiting Nepal. At current market rates, Nepali currency is worth Rs 1.60 against 1 Indian rupee. If the new rules come into effect, the previous difficulties of the tourists will be removed.
The relaxation will apply to citizens of both India and Nepal. However, a condition has been imposed on this transaction. Only Indian notes introduced after November 9, 2016 will be considered valid for transactions between the two countries. Old Rs. 500 and Rs. 1,000 note demonetized by the Government of India on November 8, 2016 will not be accepted under any circumstances. The ban will also apply to the canceled Rs 2000 notes
Nepalese nationals can only carry Indian rupees from Nepal and cannot accept Indian currency from any other country, Nepali Rashtra Bank spokesperson Guruprasad Paudel said. The spokesperson said that Indian tourists visiting Nepal as well as Nepali businessmen will benefit if the rules on the use of Indian currency are relaxed.
The Central Bank of Nepal (CBN) has also issued new guidelines for carrying foreign currency with Indian currency. According to the directive, a Nepali citizen or foreign tourist visiting the country can now enter Nepal with a maximum of USD 5,000 or its foreign currency equivalent. The new rules are now expected to give a positive boost to the country’s tourism sector and commercial transactions.