Kathmandu. Preparations are underway to allow the re-circulation of high-value Indian currency notes in Nepal which have been banned for nearly a decade. The government and Nepal Rastra Bank are preparing to allow the circulation of high value Indian currency notes in Nepal.

According to Nepal Rastra Bank (NRB) Spokesperson Guru Prasad Poudel, the government is preparing to formulate a new rule to allow the Indian currency notes above Rs 100 to be circulated again. “The government has been asking the Indian government for a long time to allow such currency notes to be circulated. Poudel says, “The Indian government has eased this system only a few days ago. Nepal is also preparing to facilitate this soon. ’

Poudel said that the process of allowing the use of Indian banknotes of 500 and 2,000 denominations will be made public soon.  According to Indian media, this will be a relief for those traveling to Nepal and India.  According to Poudel, the necessary legal and technical process in this regard has almost been completed. Now, the government of Nepal will publish it in the gazette and the NRB will issue the circular.

Nepali workers, students, religious pilgrims, patients going to India for medical treatment and Indian tourists visiting Nepal have been facing problems due to the ban on high value Indian currency notes. The compulsion to use only small denomination notes caused hassle and difficulty in transactions for the passengers. As a result, Nepal has been demanding the Indian government to lift the ban.

The central bank of India on December 2 amended the rules related to foreign exchange management. According to the amendment published in the gazette of India, passengers can now carry and bring Indian currency notes of any denomination up to Rs 25,000. In addition to this, a total amount of Indian currency worth more than Rs 25,000 denomination can be carried up to Rs 1 lakh.

Tourism entrepreneurs, hoteliers and casino operators have been demanding time and again that the government should allow the circulation of high value Indian currency notes in Nepal. It is also expected that the lifting of such notes by the government will make it easier for Indian tourists coming to Nepal. India is one of the largest tourist destinations for Nepal.  Entrepreneurs have complained that the problem in using the currency notes will have a negative impact on the tourism sector.

As per the existing rules, an Indian tourist entering Nepal can bring in Indian currency worth Rs 25,000 without any restriction. If more than this amount is brought to the customs, it is mandatory to inform the customs. It also limits the amount of money that can be taken out of Nepal. With the introduction of the new rules, there will be more clarity in the case of the Indian rupee.

In 2015, the Reserve Bank of India (RBI) had allowed Indian citizens to carry Rs 500 and Rs 1,000 notes for a total of Rs 25,000. But after the ban on Indian currency notes in 2016, large denomination notes were banned in Nepal as well.