Nepal to allow Indian currency notes above ₹100 after RBI regulatory change

Nepal is preparing to officially permit the circulation of Indian currency notes above the ₹100 denomination, nearly a decade after such notes were banned, a move expected to significantly ease cross-border travel, trade, and remittances. The Nepal Rastra Bank (NRB) is in the final stages of issuing an official notice following a key regulatory amendment by the Reserve Bank of India (RBI).

“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,” NRB spokesperson Guru Prasad Poudel said, adding that the official date is yet to be confirmed but the process is “in the final stage”.

The decision follows an amendment by the RBI to its Foreign Exchange Management (Export and Import of Currency) Regulations on November 28, published in India’s official Gazette on December 2, 2025. Under the revised rules, individuals may carry Indian currency notes of any amount in denominations up to ₹100 to Nepal and back. In addition, they are allowed to transport notes above ₹100 up to a total value of ₹25,000 in either direction.

Nepal had tightened restrictions on high-denomination Indian currency after India’s 2016 demonetisation, citing concerns over counterfeit currency and security risks. The ban forced travellers to rely on low-denomination notes, often leading to inconvenience, detentions, and fines for inadvertent violations.