Kathmandu – Nepal Rastra Bank (NRB) has announced new rules on carrying foreign currency. From now on, travelers entering or leaving Nepal can carry a maximum of 5,000 US dollars in cash. Any amount above this must be declared in advance with customs.

The bank has also banned the carrying and use of Indian currency notes of 200, 500, and 2,000 rupees. Nepali citizens are not allowed to take Indian currency to countries other than India. In addition, the use of old Indian notes of 500 and 1,000 rupees, already demonetised by the Government of India, remains strictly prohibited.

According to NRB, these rules are enforced under the Foreign Exchange (Regulation) Act 1962, the Money Laundering Prevention Act 2008, and a notice published in the Nepal Gazette. The government says the move is part of wider efforts to get Nepal removed from the Financial Action Task Force’s (FATF) grey list.

The FATF’s September 2023 report had pointed out that Nepal lacked a proper cash declaration system and warned of rising smuggling of cash, gold, and silver through its porous borders.