The Government of Nepal has lifted the ban on Indian ₹200 and ₹500 currency notes, allowing travelers to bring such notes up to a total of ₹25,000 per person.

The Government of Nepal has lifted the ban on Indian ₹200 and ₹500 currency notes, allowing travelers to bring such notes up to a total of ₹25,000 per person.^[1][2][3]

New Currency Rule for Travelers

Under the new clarifications, foreign visitors can now carry Indian re‑roaning notes, specifically the ₹200 and ₹500 denominations, up to a combined ceiling of ₹25,000. The money may be brought into Nepal in varying mixes of the two denominations, and there is no restriction on other Indian currency bills. Travelers must still comply with customs declarations for sums that exceed the minimum threshold, but the ₹25,000 limit removes the prior outright ban.^[1][2]

Background of the Banning Policy

The ban, introduced during the early months of the COVID-19 pandemic, aimed to curb the circulation of low‑denomination notes that had been reported to facilitate illicit financial activities and money‑laundering risks. Nepal had imposed a blanket restriction on Indian ₹200 and ₹500 notes, citing concerns over potential misuse in the cross‑border trade and smuggling networks.^[3]

Rationale Behind the Lift

Government officials announced that the decision is part of a broader effort to boost tourism revenue and streamline cross‑border transactions for Pakistani and Indian tourists, the two countries that generate the majority of Nepal’s foreign exchange receipts. By easing currency hassles, the ministry hopes to encourage more visitors to spend within Nepal’s hospitality and retail sectors.^[3]