Nepal Indian Currency Restriction Lifted

Nepal allows Indian currency above ₹100 denomination as the ‘Nepal Rastra Bank’ is currently in the  process of finalising the rules to implement the decision. This development follows Reserve Bank of India regulatory changes published on December 2, 2025. Therefore, cross-border travellers gain significant relief after nearly a decade of restrictions.​

The Nepal Gazette will soon publish the official notice. Banks and financial institutions receive circulars thereafter. In addition, the policy addresses longstanding issues for Nepali workers and Indian visitors.​

RBI Amendment Details

Reserve Bank of India amends Foreign Exchange Management Regulations on November 28, 2025. Individuals now carry Indian notes up to ₹100 without limits to Nepal and back. However, notes above ₹100 permit up to ₹25,000 total value in either direction.​

This update reverses post-2016 demonetisation curbs. Nepal imposed bans citing counterfeit risks and security threats. As a result, travellers faced fines and detentions for carrying higher notes.​

Historical Context

Nepal tightens rules on high-denomination Indian currency after India’s November 2016 demonetisation. Low-value notes alone sufficed for transactions, causing widespread inconvenience. Therefore, migrant workers, students, and pilgrims endure prolonged hardships.​

NRB spokesperson Guru Prasad Poudel confirms final preparations. He highlights India’s positive response to Nepal’s requests. In addition, the shift eases remittances for millions of Nepalis in India.​

Economic Impacts

The policy boosts Nepal’s tourism and hospitality sectors. Border towns, casinos, and pilgrimage sites rely on Indian visitors. For instance, unreliable connectivity in remote areas makes cash indispensable despite QR payments since March 2024.​

Nepali migrant workers earn in India and send funds home. Medical visitors and students benefit directly. Therefore, trade and economic activity across borders accelerate.​

Stakeholder Reactions

Industry executives welcome the change. They note enhanced mobility for tourism-dependent regions. However, officials stress smooth implementation through bank awareness.​

NRB underscores mutual benefits. Large Nepali populations travel to India frequently. As a result, frictionless currency use strengthens bilateral ties.​

Broader Implications

Nepal Indian Currency rules align with evolving economic realities. RBI’s flexibility supports regional integration. In addition, digital payments complement but do not replace cash in rural Nepal.​

Authorities monitor counterfeit risks post-lift. Yet, the ₹25,000 cap maintains safeguards. Therefore, both nations anticipate smoother people-to-people contacts.

Pilgrimage routes see renewed influx. Hospitality businesses prepare for increased Indian footfall. Meanwhile, remittances flow more efficiently.