Kathmandu: Nepal, which had distanced itself from India due to political squabbles, is now moving towards improving its relations with India, and as a first step, it has taken an important decision to re-recognize Indian notes in Nepal.
Yes.. The ban imposed on Indian currencies about 10 years ago has been lifted, and accordingly, Indian Rs 200 and 500 currencies have been allowed. Accordingly, it is said that an individual has been allowed to carry up to Rs.25,000.
The Nepal government, which has relaxed the restriction that was in force for about a decade, has allowed Indian and Nepalese citizens to bring in and take out Indian currency notes of Rs.200 and the new design Rs.500 denominations into the country.
After the demonetisation of 2016, the use and carrying of Indian notes of denominations above Rs.100 was banned in Nepal. Now, the rule has been revised to allow the new design of Rs.200 and Rs.500 notes.
According to a notification re-issued by the Nepal Rastra Bank (NRB) on Thursday, Indian and Nepali citizens can carry Indian notes of denominations of Rs.200 and Rs.500 issued after November 9, 2016, up to a maximum of Rs.25,000 each.
This rule was already published in the Nepal Gazette on February 11 this year. However, the Nepal Rastra Bank has issued a notification again to clarify its implementation.
What are the new rules?
According to Nepal Rastra Bank spokesperson Guru Prasad Paudel, Nepali citizens are not allowed to bring Indian currency into Nepal from any country other than India. Similarly, carrying Indian currency from Nepal to a third country other than India is also not permitted. This new rule will benefit Indian tourists visiting Nepal and Nepalese traders engaged in India-Nepal trade.
Nepalese citizens and foreign tourists can bring foreign currency worth USD 5,000 or its equivalent into Nepal without any customs declaration. However, the amount exceeding USD 5,000 must be declared to the customs authorities. In the case of Indian currency, up to USD 5,000 (approximately Rs.4.83 lakh) can be brought in without customs declaration if it is only in Rs.100 denomination notes. For amounts above that, customs declaration is mandatory.
Restrictions in force since 2016:
India had demonetised old Rs.500 and Rs.1,000 denomination notes on 8 November 2016. Later, new designs of Rs.500 and Rs.2,000 notes were introduced. Later, the Rs.2,000 notes were also withdrawn from circulation.
Following this demonetization, Nepal banned the entry and use of Indian notes of denominations above Rs.100. Even then, the maximum limit for carrying Indian currency remained at Rs.25,000, but only notes of denominations of Rs.100 or less were allowed.