Nepal Rastra Bank on 23 July 2026 permitted Indian and Nepalese citizens to carry Indian ₹200 and ₹500 notes across the India–Nepal border under specified conditions.
Permitted Notes and Limit
- Allowed denominations: ₹200 and ₹500 notes issued on or after 9 November 2016.
- Per-person cash limit: Maximum ₹25,000 into or out of Nepal per person.
Prohibited Notes and Source Restrictions
- Older notes barred: ₹500 and ₹1,000 notes issued before 9 November 2016 remain prohibited.
- Source restriction: Nepalese may bring Indian currency into Nepal only if obtained in India; carrying Indian currency from Nepal to third countries is not allowed.
Legal and Procedural Details
- Regulator: Nepal Rastra Bank is the authority for cross-border currency rules.
- Notification timeline: Rule first notified in the Nepal Gazette on 11 February 2026; clarification issued 23 July 2026.
- Foreign currency entry: Cash up to USD 5,000 may be brought into Nepal without customs declaration; higher amounts must be declared.
- Border regime: India–Nepal border operates under bilateral arrangements permitting special cross-border movement of nationals.
IASPOINT Booster Facts
- Nepal Rastra Bank: Central bank of Nepal; issues currency and implements monetary policy.
- 9 Nov 2016: Date linked to India’s withdrawal of old ₹500 and ₹1,000 notes and issuance of new-series notes.
- Nepal Gazette: Official publication for statutory and administrative notifications.
- Customs rule: Declaration requirement for foreign currency above USD 5,000 on arrival into Nepal.