Nepal has revised its rules on carrying Indian currency, expanding the list of accepted notes to include ₹200 and the redesigned ₹500 — nearly a decade after only ₹100 notes and below were allowed following India's 2016 demonetisation. The update, reissued by Nepal Rastra Bank and reported July 28, matters directly for the roughly one in four foreign tourists in Nepal who come from India.
What happened
Since 2016, Nepal restricted Indian currency notes above ₹100, a rule that created recurring friction for Indian travellers who'd show up with newer denominations and find them unusable. The revised policy now permits ₹200 notes and redesigned ₹500 notes, provided they were issued on or after November 9, 2016 — the date India's post-demonetisation currency series began circulating, according to Curly Tales and NewsX.
The overall cash limit stays unchanged: travellers can carry up to ₹25,000 in Indian currency into Nepal. For amounts equivalent to more than USD 5,000, customs declaration becomes mandatory, though notes of ₹100 or lower up to that USD 5,000 equivalent don't require declaration. Nepal Rastra Bank reissued the notice this week, though the underlying provisions were originally notified through the Nepal Gazette back on February 11, per NewsX's reporting.
There are also asymmetric conditions built in: Nepalese citizens can only bring Indian currency into Nepal when travelling directly from India, and can't carry it onward to a third country — restrictions that don't apply to Indian tourists themselves.
Why it matters
Nepal draws a huge share of its tourism from India — roughly a quarter of all foreign arrivals, per Nepal's own tourism data this year — much of it road and short-haul travellers from bordering states who rely on cash more than card payments once outside Kathmandu and Pokhara. The old ₹100 cap meant travellers routinely had to carry smaller denominations or exchange money at the border, adding friction to an otherwise simple cross-border trip.
What this means for your trip
If you're driving or flying into Nepal, you can now carry ₹200 and ₹500 notes (issued after November 2016) without needing to break them into smaller denominations before you leave India — just keep the total under ₹25,000. It's still worth carrying some Nepalese rupees or a card for larger purchases, since not every vendor outside major cities accepts Indian currency directly, and always double-check the latest customs guidance at the specific border crossing you're using, since implementation can lag policy announcements in practice.
Nepal's revised rule permits Indian ₹200 and redesigned ₹500 notes "issued on or after November 9, 2016," while the ₹25,000 carrying limit remains unchanged — NewsX
The bottom line
This is a small but genuinely useful fix for the millions of Indians who cross into Nepal every year, most of them overland. It won't change your itinerary, but it does mean one less thing to sort out before a Kathmandu or Pokhara trip.
