The Nepal government has decided to ban Indian currency above Rs 100, according to a report published in media in Nepal yesterday.
The Nepal government has declared the use of Indian currency notes of Rs 2,000, Rs 500 and Rs 200 denominations illegal in the country. Nepalese Media reports quoted Minister of Information Gokul Baskota as saying on Thursday.
When the Indian government introduced the new denominations in the months after demonetisation in 2016, the Nepal government had not made any announcement on the status of the new Indian currency notes and the new denominations were being used freely in Nepal over the last two years. However, Nepal government has decided to ban only newly introduced Indian currency notes (i.e. above Rs. 100) though it is not clear if newly introduced notes of lower denominations will also be invalid.
This decision of Nepalese Government will affect Nepalese labourers working in India, and thousands of Indian tourists who frequent Nepal every year from states like Bihar and West Bengal by road.