Kathmandu. The Nepal government has made preparations to lift the ban on high denomination Indian currency notes above Rs 100 (like Rs 200 and Rs 500 notes). Soon after demonetization in India (500 and 1000 rupee notes were discontinued), Nepal banned Indian currency notes above Rs 100 citing security reasons (counterfeit currency smuggling, money laundering and national security). Nepal has now understood that distance from India is costly for the economy and has returned to pragmatic policy. Nepal’s tourism economy largely depends on Indian travelers (hotels, casinos, pilgrimage). The ban caused huge losses to the tourism sector as Indian tourists were unable to spend freely. Migrant workers were forced to bring home their earnings in low denomination notes, increasing the risk of theft. Many Indian tourists faced arrest and fines due to lack of knowledge of currency rules. After the new rule, Indian notes of large denominations like Rs 200 and Rs 500 have again come into legal circulation in Nepal. This amendment allows Indian, Nepali and Bhutanese citizens to carry high denomination Indian currency notes while traveling to and from India. This will greatly facilitate tourists and businessmen of both the countries to travel or do business. Nepal Rastra Bank (NRB) will issue a circular in this regard once the decision by the government is published in the Nepal Gazette. This decision is being considered not only about currency but also as a sign of power, politics and the growing strength of India. Nepal has understood this thing late, but not by fighting with its neighbour, but by walking with its neighbour, the country progresses. This step is a big gesture towards boosting Nepal’s economy and strengthening relations between the two countries.
