In a significant move set to boost cross-border economic activity, the Government of Nepal has officially decided to lift its restriction on higher-denomination Indian currency notes. This decision brings much-needed relief to thousands of traders, tourists, and residents living along the India-Nepal frontier.
Reversal of a Restrictive Policy
The ban, which was originally imposed in August 2023, prohibited the use and carrying of Indian currency notes above the denomination of ₹100 into Nepal. According to Nepali media reports, the reversal was approved by the government on Monday. The new rules will permit individuals to carry Indian currency up to a limit of ₹25,000 into the country.
A senior official from Nepal's central bank, the Nepal Rastra Bank, confirmed the development. The official stated that comprehensive guidelines for implementation will be issued once the decision is formally published in the government gazette.
Widespread Impact on Daily Life and Commerce
The earlier prohibition had created substantial inconvenience for multiple groups. Nepali workers returning from employment in India often found themselves with higher-value notes that they could not use. They were forced to exchange them at the border, a process that was not only time-consuming but also posed risks of financial loss and theft.
Shyam Bhatt, a resident of Mahendranagar, highlighted the practical difficulties. "Thousands of Nepali nationals work in India and return with higher Indian currency notes," he said. The exchange process exposed them to potential losses. He also pointed out that a lack of awareness about the rule frequently led to legal issues for unsuspecting people on both sides of the border.
The ban had also negatively affected key economic sectors in Nepal:
- Tourism: Indian tourists, a major source of visitors, faced hurdles.
- Casino & Hospitality: These sectors, which rely heavily on Indian patrons, suffered a downturn.
- Cross-border Trade: Daily transactions became cumbersome as traders were restricted to using only ₹100 notes.
Voices of Relief from the Business Community
The decision has been warmly welcomed by business associations and community leaders. Bhupendra Thapa, president of the Traders Association in Dharchula, stated that this move would simplify daily transactions for local residents and business owners alike.
Echoing this sentiment, Bharat Bhandari, president of the Traders Association in Banbasa (Champawat), emphasized that cross-border commerce, which had been struggling under the previous limitation, would now operate more smoothly. The change is expected to revitalize economic exchanges in border markets.
A Boon for Pensioners and Workers
Beyond trade, the policy shift is a major relief for specific groups like retired Nepali soldiers who receive their pensions from Indian banks located in towns near the border. The ability to carry higher-denomination notes legally will make accessing their funds far more convenient and secure.
For months, industrialists and various business bodies in Nepal had been lobbying the government to ease this restriction, citing its adverse impact on the local economy and people's livelihoods. The government's latest action is a direct response to these persistent appeals.
The lifting of the ban marks a positive step in fostering stronger economic ties and easing the daily lives of those interconnected by the open border between India and Nepal.
