Nepal eases post-demonetisation curbs on Indian currency; allows Rs 200, Rs 500 notes

📌 Summary:

• Nepal has allowed Indian and Nepalese nationals to bring in / take out Indian currency notes of Rs 200 and Rs 500 denominations
• This ends a nearly decade-long restriction under which only notes up to Rs 100 were permitted, imposed after India's 2016 demonetisation
• The Nepal Rastra Bank (NRB), in a notice reissued on July 23, 2026, capped the amount at Rs 25,000 per person and applies to notes issued on or after November 9, 2016
• The easing facilitates cross-border trade, tourism and remittances between India and Nepal, reflecting warming bilateral ties and Neighbourhood First diplomacy

🎯 UPSC Relevance: GS2 (International Relations — India and its neighbourhood, Neighbourhood First policy); people-to-people and economic linkages, currency management in an open-border relationship.

📝 Prelims Facts:

• Nepal's central bank: Nepal Rastra Bank (NRB)
• New permitted denominations: Rs 200 and Rs 500 (issued on/after Nov 9, 2016); cap Rs 25,000 per person
• Earlier only Rs 100 notes were allowed, since India's 2016 demonetisation
• India and Nepal share an open border

🔑 Key Term: Demonetisation — the withdrawal of the legal-tender status of currency notes; India's November 2016 demonetisation invalidated old Rs 500 and Rs 1,000 notes, prompting Nepal's long-standing curb now being eased.