The Reserve Bank of India (RBI) has lifted restrictions on the use of high-denomination Indian rupee notes in Nepal, introducing a more flexible system for currency movement between the two countries.

The RBI amended its earlier rules under the Foreign Exchange Management (Export and Import of Currency) Regulations 2025. Under the revised provision, Indian currency and RBI-issued notes—except notes of InRs 100 denomination and above—can now be carried to and from Nepal and Bhutan without restriction.

According to the new rules, travelers from India to Nepal or Bhutan can now carry Indian currency notes above InRs 100 denomination up to a limit of InRs 25,000. Likewise, persons traveling from Nepal or Bhutan to India are also allowed to bring high-denomination notes up to InRs 25,000.

The amendment also permits Nepali and Bhutani currency to be carried between Nepal, Bhutan, and India without restriction. However, the new provision does not apply to citizens of Pakistan or Bangladesh.

Earlier, Nepal had prohibited the use of high-denomination Indian notes within its territory. The revised rules will take effect once Nepal Rastra Bank aligns its regulations with the new RBI provision.

Officials say the updated policy will benefit tourists and migrant workers traveling between Nepal and India by easing currency-related difficulties.