Nepal bans Indian currency notes above Rs 100

NEW DELHI: The Nepal government has banned all Indian notes above the denomination of Rs 100 in a move that would impact tourists visiting the Himalayan nation where Indian currency is widely used.
Travellers typically carry Indian currency as it is extensively used by Nepalese people and businesses for their savings and transactions.
The government has asked the people to refrain from keeping or carrying Indian bank notes higher than Rs 100 denomination as it has not legalised them, Nepal's minister for information and communications Gokul Prasad Baskota said.
Even though Indian currency is accepted in Nepal, people would often face difficulties while using higher denomination notes of Rs 500 and Rs 1,000 since they were not easily accepted. This is even before the demonetisation exercise of November 2016.
"Among other reasons (for the move), there was an old advice from India in this regard as a large number of fake currency in these denominations was found there. It was among the places from where wrong elements would try to bring in fake notes of Rs 500 and Rs 1,000 to India," said sources.
Sources added that the move will affect Indian travellers in Nepal since they could spend in rupees.
"Nepal citizens working in India will now have to send money home electronically. Those sending physical currency will need to do so in notes of up to Rs 100," sources said.
India is Nepal's largest trade partner and supplies the majority of its consumer goods.
The government introduced new banknotes of Rs 2,000, Rs 500 and Rs 200 denominations after the demonetisation of old notes worth Rs 500 and 1,000 in 2016.
However, the move hit countries such as Nepal and Bhutan where Indian currency is widely used.
Nepal Premier K P Sharma Oli said earlier this year that demonetisation hurt the Nepalese people and added that he would raise the matter with Indian leaders.
People have been using the new Indian currency in Nepal for nearly two years now.
(With inputs from PTI)