The ban on the use of Indian Currency notes of Rs 2000, Rs 500, and Rs 200 denominations by Nepal central bank may affect the Indian tourists visiting the Himalayan nation, a place where Indian currency is widely used.
On Sunday, Nepal Rastra Bank reportedly issued a circular prohibiting Nepali travellers, banks and financial institutions from holding or carrying and trading Indian bank notes higher than Rs 100. The central bank said in its circular letter that Indian currency of 200, 500 and 2,000 denominations cannot be carried and used for trading, it said.
Under the new regulation, Nepali citizens cannot carry these denominations to countries other than India. Similarly, Nepalis are also not allowed to bring such notes from other countries. Indian notes of 100 or below, however, are allowed for trading and conversion, the bank circular reads.
On December 13, the Cabinet had decided to publish the notification in the Nepal Gazette not to allow people to carry Indian currency notes above 100 denominations in Nepal.