Nepal is likely to soon permit the use of Indian currency notes above ₹100, a move expected to significantly ease cross-border travel and economic activity between the two neighbouring countries. The development comes nearly a decade after Nepal restricted the circulation of high-denomination Indian notes.
According to local media reports, the Nepal Rastra Bank (NRB)—the country’s central bank is in the final stages of implementing the change. Guru Prasad Poudel, spokesperson for the NRB, said the regulator is preparing to publish an official notice in the Nepal Gazette, after which circulars will be issued to banks and financial institutions outlining the new rules.
While the exact date of implementation has not yet been announced, officials indicated that the process is nearing completion.
The decision is expected to provide major relief to Nepali migrant workers travelling to India, many of whom face difficulties exchanging or using Indian currency. It will also benefit students, pilgrims, medical travellers, and tourists who regularly move between the two countries for education, healthcare, religious visits, and leisure.
Currently, restrictions on higher-value Indian notes often force travellers to rely on smaller denominations or formal exchange channels, creating inconvenience and additional costs. Allowing higher-denomination notes could simplify transactions, reduce dependency on currency exchange services, and improve ease of movement across the open India-Nepal border.
Tourism and trade stakeholders believe the move could strengthen people-to-people ties and support sectors such as hospitality, retail, and transport in both countries. Nepal’s economy, which relies heavily on tourism and remittances, is expected to see a positive impact if the policy is implemented smoothly.
Once formally notified, banks and financial institutions in Nepal will be guided on compliance and operational aspects of the revised currency rule.
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