Nepal Bans Higher Denomination Indian Currency Notes

New Delhi: In what could raise the hackles of Indian travellers, Nepal has banned use of Indian currency notes of Rs 2,000, Rs 500 and Rs 200 denominations.

Nepal is a sought-after destination for lakhs of Indians, who visit the Himalayan nation as tourists, pilgrims, traders as well as labourers, every year.

According to Nepal’s Department of Immigration, about one lakh Indian tourists visited Nepal in the first six months of 2018 alone.

The Kathmandu Post quoted Nepal Minister for Information and Communications Gokul Prasad Baskota saying that the Government has asked its citizens not to carry Indian bank notes above Rs 100. The decision was taken at a Cabinet meeting of the Nepalese government on Thursday.

Baskota said the government has not legalised the higher denomination notes. No reason was, however, cited for banning the higher denomination notes.

The new notes of Rs 2000, Rs 500 and Rs 200 were introduced after the Narendra Modi Government’s demonetisation move on November 8, 2016.

Meanwhile, some uncorroborated reports suggested that the Nepalese government took the decision following a request from the Indian side following a spurt in fake currency notes being pumped into India through the porous borders.