Nepal bans Indian notes above Rs 100

Kathmandu, December 14

The Nepal government has banned the use of Indian currency notes of Rs 2,000, Rs 500 and Rs 200 denominations, a move that could affect Indian tourists visiting the Himalayan nation where Indian currency is widely used.

Indian currency is extensively used by Nepalese people and businesses for their savings and transactions.

The government has asked people to refrain from keeping or carrying Indian bank notes higher than Rs 100 denomination as it has not legalised them, Nepal’s Minister for Information and Communications Gokul Prasad Baskota said. “The government has decided not to use, carry and keep the Indian bills of 200, 500 and 2,000 denominations. The government will soon issue a formal notice in this matter,” he said.

The decision will adversely affect Nepalese labourers working in India as well as Indian tourists visiting Nepal. India is Nepal’s largest trade partner and supplies majority of its consumer goods.

The Indian government introduced new banknotes of Rs 2,000, Rs 500 and Rs 200 denominations after the demonetisation of old notes worth Rs 500 and 1,000 in 2016. However, the move hit countries such as Nepal and Bhutan where Indian currency is widely used.

Nepal PM KP Sharma Oli said earlier this year that demonetisation hurt the Nepalese people and added that he would raise the matter with Indian leaders. People have been using the new Indian currency in Nepal for nearly two years now. — PTI

Tourists, labourers to be affected

• Indian tourists visiting Nepal are likely to be hit as Indian currency is widely used there 
• Apart from Indian tourists, a large number of Nepalese labourers working in India would be affected by the decision
• Nepal has banned Rs 2,000, Rs 500 and Rs 200 notes, the first and last ones introduced post-demonetisation in India