Nepal Rastra Bank (NRB) has set a ceiling on the amount of foreign currency travelers can carry when entering or leaving the country.
In a public notice issued on Tuesday, the central bank announced that individuals may carry a maximum of US $5,000 in cash, whether entering or departing Nepal.
“Individuals wishing to carry more than USD 5,000 must declare the amount in advance with customs,” the NRB circular stated. The bank has also prohibited carrying Indian currency in denominations of 200, 500, and 2,000 rupees, and barred their use in transactions.
Furthermore, Nepali citizens are restricted from carrying Indian currency when traveling to third countries (other than India). The bank also reminded the public that old Indian notes of 500 and 1,000 rupees, demonetized by the Government of India, remain invalid.
The new rules—enforced under the Foreign Exchange (Regulation) Act 1962, Money Laundering Prevention Act 2008, and a notice published in the Nepal Gazette—aim to tighten regulation on the carrying and use of foreign currency, NRB said.
Officials noted that the move aligns with Nepal’s efforts to exit the Financial Action Task Force’s (FATF) grey list. An NRB source explained that the restrictions are designed to curb hard currency smuggling across porous borders.
The FATF’s September 2023 Mutual Evaluation Report on anti-money laundering and counter-terrorist financing flagged Nepal’s lack of a proper cash declaration system as a key weakness. It also expressed concern over rising smuggling of cash, gold, and silver through Nepal’s borders.
