Nepal to Ease Currency Restrictions for Indian Tourists and Workers: What the New Rules on ₹100 Notes Mean for Trade and Tourism

Published on December 14, 2025

Nepal is on the brink of a significant policy shift that will greatly benefit Indian tourists, workers, and students traveling between the two countries. After nearly a decade of restrictions, Nepal plans to allow Indian currency notes above ₹100, a move that promises to ease the burden on cross-border travelers, pilgrims, and traders. This long-awaited change, expected to be finalized soon, is set to revitalize tourism and simplify currency exchange for both Indian nationals and Nepali citizens. As Nepal nears the implementation of this decision, the Nepal Rastra Bank (NRB) prepares to issue official guidelines that will transform the travel experience for many. This pivotal shift aims to enhance trade relations, tourism growth, and make everyday transactions more seamless for Indian visitors to Nepal.

Impact on Cross-Border Travel and Trade Between Nepal and India

The decision to allow the use of Indian notes above ₹100 marks a crucial step in improving cross-border mobility. Nepali migrant workers, who frequently travel to India, have long faced challenges with currency restrictions, limiting their ability to carry and spend money freely. By easing these rules, Nepal is supporting thousands of Nepali workers who depend on smooth financial transactions while in India. Similarly, Indian students, tourists, and pilgrims visiting Nepal will benefit from this change, as it will eliminate the need to convert currency or carry smaller denominations in large amounts.

Nepal’s tourism industry—especially areas like casinos, hotels, and hospitality businesses—has long been impacted by these currency restrictions. The influx of Indian tourists, who form the largest group of international visitors to Nepal, is expected to grow further with this relaxed policy, contributing to the growth of Nepal’s tourism economy. Tourism-related businesses, which previously faced operational difficulties with these currency rules, will now find it easier to cater to Indian tourists, promoting both regional trade and cultural exchanges.

What Led to Nepal’s Currency Policy Change?

The proposed currency relaxation is part of a broader change in India’s currency export regulations. In late November 2025, the Reserve Bank of India (RBI) amended its Foreign Exchange Management (Export and Import of Currency) Regulations, which now permits individuals to carry higher denominations of Indian currency (above ₹100) up to a total value of ₹25,000. This shift provides much-needed flexibility for travelers between Nepal and India and is seen as a progressive move to address long-standing concerns about currency exchange complications.

This adjustment has come in response to frequent requests from Nepali business owners and the tourism sector, who have highlighted the economic advantages of allowing higher-value Indian notes. Nepal had previously imposed strict limits on Indian currency denominations following concerns over counterfeit notes being smuggled across the border. The 2016 demonetization by India further intensified these restrictions, creating a challenging environment for cross-border commerce and tourism.

What This Means for Nepali Tourists and Indian Visitors

For Indian tourists, this relaxation means easier access to currency when visiting Nepal, particularly for remote areas where digital payment systems like QR codes are still unreliable. As of March 2024, India’s QR payment systems began to gain popularity in major urban centers across Nepal, yet their effectiveness remains limited in rural regions. Allowing Indian notes above ₹100 will fill the gap, enabling seamless transactions in regions that are typically underserved by modern payment infrastructure.

For Nepali travelers going to India, this new rule will allow them to carry larger sums of Indian currency without the added hassle of converting smaller denominations or facing currency-related penalties. It will streamline the process of purchasing goods, paying for services, or traveling across India.

The Road Ahead: What Travelers Should Know

Although the Nepal Rastra Bank is still in the final stages of implementing this change, it’s important for travelers to stay informed about updated regulations. Once the policy is officially published in the Nepal Gazette, banks and financial institutions will distribute the necessary guidelines to ensure smooth adoption of the new rules. Tourists, pilgrims, and students should watch for official updates to fully understand the limits and procedures for carrying Indian notes across the border.

In the meantime, travelers should also be aware that there are still restrictions on how much foreign currency can be brought into Nepal. Tourists may bring in up to $5,000 or the equivalent in other foreign currencies without declaration. However, amounts beyond this must be declared at customs. Travelers should also ensure they comply with Nepal’s rules about currency withdrawal and export to avoid facing penalties.

Why Nepal Needs This Change for Tourism Growth

India remains Nepal’s largest source of tourism arrivals, with thousands of Indians visiting the country every year for business, leisure, and religious purposes. The revenue generated from Indian visitors is crucial to Nepal’s hospitality sector, which includes hotels, tourist attractions, and cultural sites. By allowing Indian notes above ₹100, Nepal is positioning itself as a more attractive destination for Indian tourists who may have previously been deterred by currency restrictions.

Additionally, Nepal’s casino industry and high-end hotels, which often cater to Indian tourists, will see positive changes. Restrictions on the use of higher-value currency have hindered the growth of these sectors, with tourists occasionally violating currency rules unknowingly. With the new regulations in place, Indian visitors will be able to enjoy a smoother, more welcoming experience, ultimately driving tourism revenue and promoting economic stability.

What to Expect Next: Travel Tips for Tourists

For those planning to visit Nepal in the near future, it’s advisable to carry small denominations of Indian currency as well as any necessary documents to ensure a smooth crossing at the border. Always check for official updates about the new currency rules to avoid any inconvenience at customs. Travelers may also want to consider using digital payment platforms where available, particularly in urban areas.

Nepali citizens heading to India should stay updated on the new currency export regulations to avoid carrying large amounts of cash unnecessarily. By adhering to the new guidelines, cross-border travel will become even more efficient and hassle-free.