NEPAL ALLOWING 200 AND 500 NOTES ( INDIA)

1. Official Notification

Issued by: Nepal Rastra Bank (NRB) on Thursday, July 24, 2026

Reiteration: The rule was first published in Nepal Gazette on Feb 11, 2026. NRB reissued it to clarify implementation

Applies to: Indian and Nepali nationals only . 

Currency Limits for Travel between India & Nepal

Indian ₹

Denominations Allowed: ₹200, ₹500 notes issued on/after Nov 9, 2016

Limit Without Declaration: Up to ₹25,000 per person

Other Foreign Currency

Denominations Allowed: USD and equivalent

Limit Without Declaration: Up to USD 5,000

Important Notes:

₹500 and ₹1000 notes issued BEFORE Nov 9, 2016 are still completely prohibited

If you carry more than ₹25,000, you must make a customs declaration . 

3. Route Restrictions

NRB spokesperson Guru Prasad Paudel clarified:

Nepali nationals CANNOT bring Indian currency into Nepal from any country other than India

Nepali nationals CANNOT take Indian currency from Nepal to any third country except India

Indian citizens can bring/take as per the ₹25,000 limit . 

4. Background - Why the ban existed

After India's demonetisation on Nov 8-9, 2016, Nepal banned all ₹500 and ₹1000 notes. Only ₹100 and below were allowed.

This created problems for Indian tourists and Nepali traders doing business in India. 

5. Impact

Tourism: Easier for Indian tourists visiting Nepal

Trade: Helps thousands of Nepali citizens who work, study, and do business in India

Border: India is Nepal's largest trading partner . 

6. Other Travel Context

Nepal is also pushing to accept India's National ID card for cross-border travel, in addition to passport and citizenship certificate .