Daijiworld Media Network - Kathmandu
Kathmandu, Jul 26: Nepal has allowed Indian and Nepali nationals to carry Indian currency notes of Rs 200 and Rs 500 across the India-Nepal border, subject to a maximum limit of Rs 25,000 per person, provided the notes were issued on or after November 9, 2016.
The Nepal Rastra Bank (NRB) said the decision is in accordance with existing foreign exchange regulations and is expected to facilitate travel, trade and business between the two neighbouring countries, which share an open border and deep economic and cultural ties.
In a notice issued on Thursday, the central bank clarified that Indian Rs 500 and Rs 1,000 notes issued before November 9, 2016, remain prohibited in Nepal. However, Indian and Nepali citizens may now carry, bring into, or take out of Nepal the redesigned Rs 200 and Rs 500 notes introduced after demonetisation, up to the prescribed limit of Rs 25,000.
The NRB noted that these provisions had already been incorporated through a notification published in the Nepal Gazette on February 11, and the latest circular has been issued to reiterate and clarify the implementation of the regulations.
NRB spokesperson Guru Prasad Paudel said Nepali citizens are permitted to bring Indian currency into Nepal only when entering directly from India. Likewise, they are not allowed to carry Indian currency from Nepal to any third country other than India.
The central bank also reiterated the rules governing foreign currency. Under the regulations, Nepali citizens and foreign visitors may bring up to USD 5,000, or its equivalent in other foreign currencies, into Nepal without filing a customs declaration. Any amount exceeding USD 5,000 must be declared to customs authorities upon arrival.
The revised clarification comes nearly a decade after India demonetised its old Rs 500 and Rs 1,000 currency notes on November 8, 2016, replacing them with redesigned Rs 500 notes and introducing Rs 2,000 notes, which have since been withdrawn from circulation.
Following demonetisation, Nepal imposed restrictions on the use and movement of the old Indian currency notes. The latest notification retains the ban on pre-November 9, 2016, Rs 500 and Rs 1,000 notes while formally allowing the movement of newer Rs 200 and Rs 500 notes between India and Nepal within the stipulated limit.