NRB lifts ban on 1,000, 500 IC notes

Nepal Rastra Bank (NRB) has lifted the restriction on the use of Indian bank notes of 500 and 1,000 denominations. NRB lifts ban on 1,000, 500 IC notes

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Published at : February 25, 2015

Updated at : February 25, 2015 08:45

Kathmandu

Nepal Rastra Bank (NRB) has lifted the restriction on the use of Indian bank notes of 500 and 1,000 denominations. The central bank in its circular on Tuesday asked the banks and financial institutions, including the money exchange, to carry out transaction of the Indian currency (IC) with those denominations.

As per the circular, only Nepali and Indian citizens are now allowed to carry Indian bank notes of 500 and 1,000 denominations across the border of the two countries. The central bank has also set the limit for carrying such bank notes at IRs 25,000 per person. The regulatory body has prohibited Nepali citizens from taking the Indian currency to and from the third countries.

On the Indian government’s request, Nepal had been imposing ban on the use of 500 and 1,000 Indian bank notes since June 2000. Reserve Bank of India on January 22 amended a regulation on “Export and Import of Indian Currency” to allow individuals to use the bank notes in Nepal and Bhutan.