This arrangement will provide special relief, especially to Indian tourists visiting Nepal and Nepalis visiting India.
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The way has now been opened for the circulation of Indian Rupees (Bharu) in denominations greater than one hundred rupees in Nepal.
The Reserve Bank of India (RBI) has allowed the use of high-denomination Indian rupees in Nepal. Currently, only the 100-rupee denomination of Indian rupees is in circulation in Nepal. With the permission of India, it is now possible to use high-denomination Indian rupees along with the 100.
However, the National Bank will have to issue a circular (instruction) to implement the arrangement. Because due to the directive of the National Bank, Indian rupees of denominations higher than 100 are not in circulation at present. Therefore, citizens will be able to bring high-denomination Indian rupees into circulation only after the National Bank issues a circular.
Currently, high-denomination Indian rupees of denominations 100, 200 and 2000 are in circulation in India. However, India has stopped printing new 2000-rupee denomination notes from 2023. Therefore, the new arrangement made by the RBI has paved the way for the exchange of 200 and 500 Indian rupees in Nepal.
After India removed 500 and 100-rupee denomination notes from circulation in 2016, the notes of those denominations in Nepal have not yet been exchanged. Therefore, the National Bank had issued a directive not to bring (exchange) large-value Indian rupees into circulation. Now, India has allowed up to 25,000 rupees to Nepal and Bhutan. Earlier, there was no provision for bringing up to 25,000 rupees from India, but there was no provision for taking them out.
This provision will provide convenience to the citizens of both Nepal and India, said Guru Prasad Poudel, spokesperson of Nepal Rastra Bank. He said that this facility will provide special relief especially to Indian tourists visiting Nepal and Nepalis visiting India.
