The Nepal Rastra Bank (NRB), in a notice reissued on Thursday, said Indian and Nepalese nationals may carry Indian currency notes of Rs 200 and Rs 500 denominations issued on or after November 9, 2016, up to a limit of Rs 25,000 per person in accordance with the prevailing regulations.
Though the provisions had already been notified through a notice published in the Nepal Gazette on February 11 after the necessary regulations were framed, the NRB reissued the notice to reiterate the rules and clarify their implementation.
Clarifying the new rules, NRB spokesperson Guru Prasad Paudel said on Saturday that Nepalese nationals cannot bring Indian currency into Nepal from any country other than India. Likewise, they cannot carry Indian currency from Nepal to a third country, except India.
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He said the revised provision would facilitate Indian tourists visiting Nepal and Nepalese nationals engaged in trade and business with India.
The notice also said Nepalese nationals and foreign visitors can bring up to USD 5,000 or its equivalent in other foreign currencies into Nepal without making a customs declaration.
Amounts exceeding USD 5,000 must be declared to customs upon arrival.
In case of the Indian currency, travellers may bring in an amount equivalent to up to USD 5,000 (approx Rs 4.83 lakh) without making a customs declaration only if the denominations do not exceed Rs 100, Paudel said.
However, if the amount exceeds the USD 5,000 limit, a customs declaration is mandatory, he added.
India demonetised Rs 500 and Rs 1,000 currency notes on November 8, 2016, replacing them with redesigned Rs 500 notes and introducing new Rs 2,000 notes, which have since been withdrawn from circulation.
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Following the demonetisation, Nepal prohibited the entry and use of Indian currency notes of denominations above Rs 100. While the ceiling of Rs 25,000 on carrying Indian currency remained unchanged, travellers were effectively restricted to notes of Rs 100 and below.
Under the revised regulations, Indian and Nepalese nationals are now permitted to carry redesigned Rs 500 notes and Rs 200 notes issued after November 9, 2016, subject to the existing ceiling of Rs 25,000.
Indian currency notes of Rs 500 and Rs 1,000 denominations issued before that date will continue to remain prohibited in Nepal.
The move is expected to facilitate travel and cross-border transactions between India and Nepal, which share an open border and close people-to-people ties. India is Nepal’s largest trading partner and a major source of tourists, while thousands of Nepalese citizens live, work, study and conduct business in India.
