Nepal to Accept Indian Currency Notes Above ₹100 After RBI Rule Change Nepal-allow-Indian-currency-notes .jpg

Nepal is set to permit the circulation of Indian currency notes above the ₹100 denomination, marking a major shift nearly 10 years after restrictions were imposed following India’s demonetisation, as per news reports. 

The move comes after a recent amendment by the Reserve Bank of India and is expected to ease long-standing challenges faced by travellers, workers and businesses operating across the India–Nepal border. 

Regulatory Change and Implementation 

The Nepal Rastra Bank is preparing to formalise the change through an official notice and subsequent directions to banks and financial institutions.  

Explaining the status, NRB spokesperson Guru Prasad Poudel said, “We are in the final stages. We are preparing to publish the notice in the Nepal Gazette, and will then issue circulars to banks and financial institutions about the new rule.”  

The decision follows an RBI amendment to the Foreign Exchange Management regulations notified on November 28 and published on December 2, 2025.  

Under the revised framework, individuals can carry Indian currency notes of any amount in denominations up to ₹100 between the 2 countries, while higher denominations will be permitted up to a cumulative limit of ₹25,000 in either direction. 

Impact on Travel, Workers and Tourism 

Nepal had earlier tightened controls on high-denomination Indian currency citing counterfeit and security concerns, often forcing travellers to rely on low-value notes and leading to inconvenience, detentions and penalties.  

While QR-code payments introduced in March 2024 have helped in urban areas, unreliable connectivity in remote regions has kept cash relevant, underscoring the significance of the policy shift. 

Read More: 8th Pay Commission: Indian Railways Eyes Cost-Cutting Ahead of Wage Revision! 

Conclusion 

Allowing higher-denomination Indian currency is expected to improve cross-border mobility, support remittances and provide a boost to Nepal’s tourism and hospitality sectors, particularly in border regions and pilgrimage routes that depend heavily on Indian visitors. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.