What’s the story
Nepal is all set to allow the circulation of Indian currency notes higher than ₹100, nearly a decade after such notes were banned.
The move comes from the Nepal Rastra Bank (NRB), which is in the final stages of publishing an official notice.
This decision follows a major regulatory change by India’s central bank, the Reserve Bank of India (RBI).
RBI’s regulatory change paves way for currency circulation
The RBI amended its Foreign Exchange Management (Export and Import of Currency) Regulations on November 28, 2025.
The revised rules, published in India’s official Gazette on December 2, allow individuals to carry Indian currency notes of any amount in denominations up to ₹100 to Nepal and back.
It also permits the transport of notes above ₹100 up to a total value of ₹25,000 in either direction.
Nepal’s previous restrictions and their impact
Nepal had imposed strict restrictions on high-value Indian currency after India’s 2016 demonetization.
The ban was aimed at curbing counterfeit currency smuggling and security risks.
However, it forced travelers to rely on low-denomination notes, causing financial hardships and confusion.
Many were even detained or fined for inadvertently violating these rules.
Economic boost expected from lifting currency ban
The lifting of this ban is expected to give an immediate and major boost to Nepal’s economy, especially its tourism and hospitality sectors. These sectors heavily depend on Indian visitors.
Businesses in border towns, casinos, and pilgrimage routes catering to Indian tourists have been pushing for this change as previous restrictions limited their spending power.
Relief for Nepali migrant workers in India
The decision also comes as a huge relief for the estimated two million Nepali migrant workers in India. They had faced major security risks while bringing home their earnings in small denominations.
NRB spokesperson Guru Prasad Poudel confirmed that they are preparing to publish the notice in the Nepal Gazette before issuing circulars to banks and financial institutions.
