Now, Indian travellers visiting Nepal can carry and pay in Indian currency in ₹200 and ₹500 denominations, as the Nepal government has relaxed its rules, subject to certain limits.
But does this mean you can simply carry ₹25,000 in cash and use it anywhere in Nepal? And should you carry Indian Rupees or exchange money for Nepalese Rupees? Here is what Indian travellers need to know.
Also Read: How to Calculate Your Budget for a Trip Abroad
What Has Changed With Indian Currency Rules in Nepal?
The Nepal Rastra Bank (NRB) issued a notice on 26 July 2026, stating that Indian and Nepalese citizens are allowed to carry Indian currency notes in denominations of ₹200 and ₹500 that were issued on or after 9 November 2016, with a maximum limit of ₹25,000 per person in line with the existing regulations.
Indian currency notes in denominations of ₹500 and ₹1,000 that were issued before the demonetisation will still be banned in Nepal.
The change removes a restriction that had been in place following India’s 2016 demonetisation, where travellers could only carry Indian Rupee denominations of or below ₹100.
NRB spokesperson Guru Prasad Paudel also clarified that Nepalese citizens are not allowed to bring Indian currency into Nepal from any nation other than India. Additionally, they are prohibited from taking Indian currency from Nepal to a country other than India.
How Much Indian Currency Can You Carry to Nepal?
Nepal Rastra Bank states that a Nepalese or foreign traveller can bring cash foreign currency (including Indian Rupees) into Nepal up to USD 5,000 or its equivalent without making a customs declaration.
However, Indian and Nepalese nationals can only carry up to ₹25,000 per person in permitted ₹200 and ₹500 Indian currency notes when entering or leaving Nepal.
For example, an Indian traveller could carry ₹20,000 in ₹500 notes and ₹5,000 in ₹200 notes, staying within the ₹25,000 ceiling applicable to these denominations. And the rest of the funds must be taken in denominations below ₹200.
Which Indian Currency Notes Can You Take to Nepal?
Permitted Bank Notes:
- ₹500 notes issued after November 9, 2016
- ₹200 notes
- ₹100 notes
- Lower denominations, such as ₹10, ₹20, and ₹50
Prohibited Bank Notes:
- Old ₹500 notes issued before demonetisation
- Old ₹1,000 notes
Pro Tip: It is advisable not to carry ₹2,000 notes, since they are not among the denominations covered by the newly relaxed provision and have already been withdrawn from general circulation in India.
NPR-INR Exchange Rate
Nepal’s official currency is the Nepalese Rupee (NPR).
The exchange rate between the Indian Rupee and the Nepalese Rupee does not fluctuate like other global currencies. It is bound by a fixed peg system maintained by the central banks, where 1 INR is strictly equal to 1.6 NPR.
Can Indian Travellers Pay Directly in Indian Rupees in Nepal?
Being allowed to carry Indian currency into Nepal does not necessarily mean that every shop, hotel, restaurant, taxi or other merchant is required to accept payment in INR.
So, while you may be able to pay certain businesses directly using Indian Rupees, it is better to confirm that the merchant accepts INR and check the conversion being applied before making the payment.
Keeping some Nepalese Rupees with you is useful for places where Indian currency may not be accepted or where payment in NPR is more convenient.
Can Indians Use UPI in Nepal?
Through the collaboration between NPCI International and Fonepay Payment Service Ltd, Indian customers can make UPI payments at participating merchants in Nepal by scanning compatible Fonepay merchant QR codes.
However, this facility applies to participating merchant QR codes, so travellers should not assume that every QR code in Nepal will work with an Indian UPI app.
Indian users with UPI apps like PhonePe, Google Pay, Paytm, and BHIM can pay in Nepal by enabling the ‘international payments’ option in the app.
Transactions are processed in Indian Rupees and are instantly credited as Nepalese Rupees for the merchant.
Should You Carry Indian Rupees or Nepalese Rupees for Your Nepal Trip?
For Indian travellers, the most practical approach is to carry a mix of Indian Rupees and Nepalese Rupees rather than relying entirely on one currency.
For Indian travellers, the most practical approach is to carry a mix of Indian Rupees and Nepalese Rupees rather than relying entirely on one currency.
Carry an emergency amount of NPR for immediate expenses as you enter the country.
Later, you can exchange the required amount from INR or even make payments in INR at possible places.
Nepal’s decision to permit ₹200 and ₹500 Indian notes removes an inconvenience that Indian travellers had faced for years. However, the change comes with denomination and carrying limits, so plan your travel budget according to the rules and travel worry-free.
Also Read: How to Carry Currency Safely When Travelling Abroad
Article Sources:
Ann Mariya Job is the Associate Content Writer at ExTravelMoney.com. Holding a Bachelor’s in Journalism, she excels in creating deeply researched, engaging, and crisp content. Her work helps readers understand the complexities of foreign exchange, overseas money transfers, and international travel.
