KATHMANDU, December 15: Nepali and Indian citizens can now carry up to INR 25,000 in cash in denominations of 200 and 500 when crossing the border, following a recent government decision aimed at easing cross-border transactions.
A cabinet meeting held on Monday approved the move to permit circulation of the specified Indian currency notes for citizens of the two neighbouring countries. Announcing the decision, government spokesperson and Minister for Communication and Information Technology Jagdish Kharel said the cash can be carried in the new 200 and 500 rupee notes introduced by the Indian government on 9 November 2016.
One held with over INR 372,000 in unexplained cash
The new rule aligns with India’s recent relaxation on cross-border currency exchange. Earlier this month, India lifted restrictions on carrying Indian notes of denominations higher than INR 100 to Nepal, signalling increased flexibility for cross-border financial transactions.
The measure allows the exchange of 200 and 500 rupee notes for travellers, addressing long-standing concerns over the smuggling of higher-denomination notes and security risks. Nepal Rastra Bank (NRB) had repeatedly requested the Indian authorities to issue a notification recognising banknotes above INR 100 as legal tender in Nepal.
According to NRB officials, the new regulation is expected to ease financial transactions for tourists, students, and workers who frequently travel between the two countries, offering them greater convenience and certainty in carrying Indian currency.
