Due to the open border, deep cultural ties and strong trade relations between India and Nepal, millions of people travel between the two countries every year. India is Nepal’s biggest trading partner and most of the foreign tourists also reach Nepal from India. Thousands of Nepalese citizens are engaged in jobs, studies and business in India, while a large number of Indian tourists and businessmen visit Nepal.
In such a situation, the Nepal government has issued new rules regarding Indian currency and foreign currency, which will have a direct impact on the people traveling and doing business between the two countries. The purpose of the new provisions is to simplify cross-border transactions and clarify the old rules. According to the new notice issued by Nepal Rastra Bank (NRB), now Indian and Nepali citizens can bring or take Indian notes of Rs 200 and Rs 500 up to a maximum of Rs 25,000 to Nepal, but this facility will be applicable only on notes issued on or after 9 November 2016.
banned on old notes
At the same time, Nepal has also made it clear that old Indian notes of Rs 500 and Rs 1,000 issued before 2016 will still be completely banned. Apart from this, a new limit has also been set regarding foreign currency. Now Nepali citizens and foreign tourists can bring up to US$5,000 to Nepal without customs declaration, but if the amount is more than this, it will be mandatory to inform the customs authorities.
- Permission to carry new Indian Rs 200 and Rs 500 notes up to Rs 25,000 in Nepal.
- Notes of Rs 500 and Rs 1,000 issued before November 9, 2016 are still banned.
- Will be able to take up to 5,000 US dollars to Nepal without customs declaration.
- Declaration at customs is mandatory for amounts exceeding $5,000.
- Ban on bringing Indian currency from third country to Nepal or taking it from Nepal to third country.
Rules changed for those going to Nepal (Getty Image)
What changed regarding Indian notes?
The Government of Nepal has clarified that Indian and Nepali citizens can now bring or take Indian Rs 200 and Rs 500 notes into Nepal up to a maximum of Rs 25,000. However, this facility is only for those notes which are issued on or after 9 November 2016. This means that old notes of Rs 500 and Rs 1,000, before demonetisation, will still not be valid in Nepal and they are not allowed to be transported.
New rule on dollar and foreign exchange
Nepal government has also clarified the rules regarding foreign currency. According to the new provision, Nepali citizens and foreign tourists can bring up to US $ 5,000 or its equivalent in foreign currency to Nepal without any customs declaration. If a person brings more than this amount, he will have to declare it to the customs officials at the time of entry. Its objective is to monitor foreign exchange and maintain financial transparency.
Indian currency will not be able to be transported through third countries
Nepal Rastra Bank (NRB) spokesperson Guru Prasad Paudel clarified that Nepali citizens cannot come to Nepal with Indian currency from any country other than India. Similarly, they cannot travel to any third country with Indian currency from Nepal. That means the movement of Indian rupees will be considered valid only between India and Nepal. If a traveler reaches Nepal with Indian currency from any other country, it will be considered a violation of the rules.
Nepal changed currency rules (Getty Image)
The Nepal government says that the purpose of this provision is to limit the use of Indian currency only between the two neighboring countries, maintain transparency in cross-border financial activities and reduce the possibility of currency misuse or illegal transactions. This will facilitate legitimate trade and travel between India and Nepal, but Indian currency will not be used through any third country.
What is the benefit to Indian tourists and businessmen?
The Nepal government says that the new rules will provide convenience to tourists coming from India and Nepali citizens doing business with India. Due to the open border between India and Nepal, there is continuous movement of people from both the countries. In such a situation, by clarifying the rules related to Indian currency, travelers and businessmen will not have to face unnecessary problems.
Status of digital payment in Nepal
Although digital payments are growing rapidly in Nepal, a large number of cash transactions still take place in tourist destinations, small towns and border markets. In such a situation, it becomes important to know the rules related to Indian currency before travelling. Indian tourists and businessmen play a big role in Nepal’s economy. Every year lakhs of tourists from India reach Nepal. Many businessmen in the border areas also transact in Indian rupees. Therefore, the rules related to Indian currency have a direct impact on both trade and tourism.
Why does the ban on old notes continue?
India had demonetized old notes of Rs 500 and Rs 1,000 on 8 November 2016. After this, notes of Rs 500 and Rs 2,000 with new designs were issued. After demonetization, Nepal also banned the use of old Indian notes and their import and export. Despite the new order, this ban will remain applicable on old notes as before.
Open border between India and Nepal
There is about 1,751 km long open international border between India and Nepal. Citizens of both the countries can visit each other’s country without visa and passport. This is the reason why thousands of people move between the two countries every day for business, employment, education and tourism. Under the Indo-Nepal Peace and Friendship Treaty of 1950 between India and Nepal, citizens of both the countries have got many special facilities related to travel, residence and employment in each other’s places. That is why Nepal is considered one of the easiest foreign destinations for Indian tourists.
Leave a Reply