Nepal Relaxes Currency Rules, Now Accepts Indian ₹200 and ₹500 Notes

In a move that will likely be welcomed by tourists and cross‑border traders alike, Nepal has quietly eased the cash‑carrying rules that were tightened after India’s 2016 demonetisation drive. The Nepal Rastra Bank (NRB) re‑issued a notice on July 23, 2026, stating that Indian and Nepalese nationals may now bring Indian rupee notes of ₹200 and ₹500 denominations – but only those printed after November 9, 2016 – into the country.

The old rule, which limited legal Indian currency to ₹100 notes or lower, had been in place for almost ten years. While the overall ceiling of ₹25,000 per person remained unchanged, the new provision effectively broadens the range of notes that can be used for everyday purchases, from roadside tea stalls to boutique hotels in Kathmandu.

NRB spokesperson Guru Prasad Paudel clarified that the relaxed rule applies solely to cash brought in directly from India. Nepalese citizens cannot import Indian rupees from any other country, nor can they ferry Indian cash out of Nepal to a third nation. The intention, Paudel said, is to make travel smoother for Indian visitors and to help Nepalese businesses that trade across the border.

Alongside the currency tweak, the NRB reminded travelers that they may bring up to US$5,000 (or its equivalent in other foreign currencies) into Nepal without a customs declaration. Anything above that amount must be declared at the border.

Analysts see this as a subtle yet positive sign in India‑Nepal relations, signalling a willingness to loosen the remnants of post‑demonetisation friction while still maintaining a cautious watch over capital flows.