Kathmandu, July 24: The Nepal Rastra Bank (NRB), the central bank of Nepal, has introduced new regulation governing the exchange and transportation of foreign currency, officially allowing the use of Indian Rs. 200 and Rs. 500 banknotes in Nepal under specified limits.
The new policy also clarifies the limits on carrying and exchanging US Dollars and other foreign currencies for Nepali citizens and foreign nationals, aiming to eliminate confusion for international travelers.
According to the revised rules, Indian citizens may bring into Nepal, carry, exchange and take out Indian currency notes of Rs. 200 and Rs. 500 with a maximum value of Rs. 25,000 per person.
However, Indian Rs. 500 and Rs. 1,000 notes issued before November 9, 2016, remain strictly prohibited.
The central bank has also clarified that foreign nationals (other than Indian citizens) and Nepali citizens may bring into or take out of Nepal up to US$5,000 per person, or the equivalent amount in any other foreign currency for which the Nepal Rastra Bank publishes an exchange rate, without making a customs declaration.
Any amount exceeding this limit must be declared to customs and supported by the required documentation.
The new regulations further prohibit Nepali citizens from carrying Indian currency to countries other than India or bringing Indian currency into Nepal from third countries.
According to the Nepal Rastra Bank, the revised rules are expected to reduce legal uncertainties for Indian and other foreign tourists visiting Nepal while strengthening compliance with the Foreign Exchange Regulation Act and the Asset (Money) Laundering Prevention Act.
However, it is still not clear whether Indian government will allow and accept INR 200 and 500 notes from Nepal, as the Reserve Bank of India, previously, didn’t allow entry of INR 200 and 500 notes. #nepal
