Nepal Central Bank bans use of Indian Currency Notes

The Nepal Rastra Bank (NRB), the central bank of Nepal, has recently announced the ban of Indian currency notes with denominations above Rs.100. Under the new rule, Nepali citizens cannot carry these denominations to other countries except India. Similarly, Nepalis are also not allowed to bring such notes from other countries.

The central bank has issued a circular prohibiting Nepali traveller, banks and financial institutions from holding or carrying and trading Indian bank notes higher than Rs. 100. The central bank said in its circular that Indian denominations of Rs 2,00, Rs 500 and Rs 2000 cannot be carried and used for trading. The decision to ban these notes has come at a time when the NRB has requested the Reserve Bank of India (RBI) to allow Nepal to use currency notes with all denominations. At present, only the notes with a denomination of Rs. 100 and below are freely exchangeable in Nepal.