Nepal bans use of India’s Rs 2,000, Rs 500, Rs 200 notes

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. The decision, which will affect middle and low-income Indian tourists, was taken at the last Cabinet meeting, Minister of Information Gokul Baskota announced Thursday Dec 13,2018

When the Indian government introduced the new denominations in the months following demonetisation in 2016, the Nepal government did not make any announcement on the status of the new currency notes. The new denominations were being used freely in Nepal over the last two years, but the latest decision will affect Nepalese labourers working in India, and a large number of middle and low-income Indian tourists who frequent Nepal every year.

The decision comes as the Nepal government is making preparations to celebrate 2020 as the ‘Visit Nepal Year’. Estimates indicate that at least 2 million people will visit Nepal in 2020, the bulk of them from India.