India has officially lifted the ban on carrying Indian currency notes above INR 100 into Nepal, allowing denominations of INR 200 and INR 500 to be carried across the border.
In a notification published in the Gazette of India, the Reserve Bank of India (RBI) announced that the revised provision will apply to both Nepal and Bhutan. Under the new rule, individuals travelling between the countries may carry Indian currency in denominations higher than INR 100—though the cross-border limit remains capped at INR 25,000.
“Individuals from Nepal or Bhutan may bring into India or take away from India currency notes of the Government of India and the Reserve Bank of India above INR 100 in either case,” the notice states. However, Nepali citizens are still prohibited from taking these notes to any country other than India.
The restrictions were originally imposed under the Foreign Exchange Management Act (FEMA) in 2000, limiting the circulation and exchange of Indian notes over INR 100 in Nepal due to concerns over smuggling and security risks.
Despite Nepal Rastra Bank (NRB) repeatedly requesting the acceptance of higher denominations in Nepal, India had not previously issued the necessary approval notice. After the 2016 demonetisation, new INR 200, 500 and 2,000 notes were introduced, but remained non-legal tender in Nepal due to the lack of formal notification.
NRB spokesperson Guru Prasad Poudel said the decision will ease travel and transactions for tourists, students and cross-border workers. The provision, however, will only take effect after the NRB finalises its implementation.
