Nepal bans Indian currency notes above Rs 100

New Delhi, Dec 14: The Nepal government has declared the use of Indian currency notes of Rs 2,000, Rs 500 and Rs 200 denominations illegal in the country.

So, the government has decided to ban the use of high denomination Indian currency notes and use only Rs 100 notes in the country now onwards, according to a report in the Kathmandu Post.

The decision was announced by Nepal government’s spokesperson and Minister for Information and Communications Gokul Prasad Baskota.

The decision, which will affect middle and low-income Indian tourists, was taken at the last Cabinet meeting, said Gokul Baskota.

The Nepal government has urged the people of its country to refrain from keeping or carrying Indian bank notes higher than Rs 100 notes as it has not legalised the India bank notes of denomination Rs 200, Rs 500 and Rs 2000, the report said.

When the Indian government introduced the new denominations in the months following demonetisation in 2016, the Nepal government did not make any announcement on the status of the new currency notes. The new denominations were being used freely in Nepal over the last two years, but the latest decision will affect Nepalese labourers working in India, as well as Indian tourists frequently visiting Nepal.