So, you’re packing your bags for Kathmandu or maybe a trek up toward Everest Base Camp. You’ve got your down jacket, your passport, and a wallet full of cash. But then you stop. You remember hearing something about a ban on certain bills. Or was it a limit? Honestly, the rules for carrying indian currency to nepal have been a mess for years. One day it's fine, the next day people are getting stopped at the border for having a couple of 500-rupee notes in their pocket.
If you haven't checked the news lately, things just changed. Big time. After a decade of confusing "no-go" zones for high-value notes, both the Reserve Bank of India (RBI) and the Nepal Rastra Bank (NRB) have finally hammered out some common sense. It’s a relief, really, because for a long time, the only way to be safe was to carry heavy bricks of 100-rupee notes like some kind of old-school money launderer.
The New Reality of Carrying Cash
As of late 2025 and heading into 2026, the Nepal government officially lifted its long-standing ban on high-denomination Indian notes. This isn't just a "maybe" anymore—it’s been published in the Nepal Gazette. Basically, you can now carry those purple Rs 200 notes and the stone-grey Rs 500 notes across the border.
But don't go throwing a lakh into your backpack just yet. There is a very specific cap. You are allowed to carry up to INR 25,000 per person in these higher denominations. If you’re traveling as a family of four, you can’t just pool it all in one bag and hope for the best; the limit is individual.
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What about the old stuff? If you happen to have a dusty stash of the "pre-demonetization" Rs 500 or Rs 1,000 notes from before November 2016, leave them at home. They are completely prohibited. They aren't just "not accepted"—carrying them can actually get you into legal trouble with Nepali customs. They are effectively worthless pieces of paper in the eyes of the law.
Why the 25,000 Limit Exists
You might wonder why they don't just let us carry whatever we want. It’s the same old story: security and "grey money." For years, India was worried about high-quality fake currency entering through the porous Nepal border. Nepal, in turn, didn't want to be a dumping ground for Indian cash that they couldn't easily exchange back with the RBI.
The current INR 25,000 limit is a compromise. It's enough for a week-long trip for most budget travelers or to cover the initial costs of a trekking expedition, but it's small enough to keep the big-time smugglers from using the route easily.
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The Digital Escape Hatch: UPI in Nepal
If the thought of counting bills and worrying about limits stresses you out, there’s some genuinely good news. You’ve probably seen those QR codes everywhere in India. Well, they’ve jumped the border.
Since 2024, UPI (Unified Payments Interface) has been rolling out across Nepal. You can now use apps like PhonePe, Google Pay, or BHIM to pay at many shops, restaurants, and hotels in major cities like Kathmandu and Pokhara. It’s been a total game-changer for Indian tourists.
A quick reality check though: While UPI works like a charm in the Thamel district or at a fancy cafe in Lalitpur, it's still hit-or-miss in the mountains. If you’re heading to the Annapurna Circuit or deep into the Mustang region, do not rely on your phone. Network connectivity is spotty at best, and the local tea-house owner likely still prefers the cold, hard feel of paper money.
Dealing with the Exchange Rate
One thing that never changes is the peg. The exchange rate between Indian Rupees (INR) and Nepali Rupees (NPR) is fixed.
For every 100 Indian Rupees, you get 160 Nepali Rupees.
It’s been this way since... forever (well, since 1993). Most shops in Nepal will do the math in their head. If something costs 800 NPR, they’ll tell you it’s 500 INR. Just be careful in the border towns or very touristy spots—sometimes people try to "adjust" the rate for "convenience," but the official rate is always 1.6.
Practical Steps Before You Cross the Border
It’s easy to get complacent, but a little prep goes a long way. Nobody wants their vacation ruined by a customs officer having a bad day.
- Stick to the 25k: Even if you think you can hide more, it’s not worth the risk. If you need more than INR 25,000, consider using a multi-currency travel card or withdrawing from an ATM in Nepal.
- Check the Year: Look at your notes. Ensure they were printed after the 2016 demonetization. Any note with the old design is a liability.
- Mix it Up: Carry a mix of Rs 100, Rs 200, and Rs 500 notes. While the higher notes are now legal, the smaller 100-rupee bills are still the most widely accepted and easiest to use for small purchases like tea or a bus ticket.
- Declare if Needed: If you are carrying more than $5,000 (or equivalent in other foreign currencies), you must declare it at customs. For Indian currency specifically, stick to the 25k rule unless you have special permission for trade.
- ATM Strategy: State Bank of India (SBI) has a huge presence in Nepal through Nepal SBI Bank. If you have an Indian SBI card, you can often withdraw cash at their ATMs in Kathmandu with lower fees than other international banks.
The "Invisible" Rules You Should Know
There’s the law, and then there’s what actually happens. In the past, people carrying indian currency to nepal were often harassed if they had anything other than 100-rupee notes. Even though the ban is lifted, word travels slowly to remote border checkpoints.
If you're crossing by land at places like Birgunj or Sunauli, keep your cash tucked away and don't make a show of it. Most of the time, travelers are ignored, but if you look like you’re carrying a massive amount of cash, you’re asking for an inspection.
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Also, remember that while you can take Indian money into Nepal, taking large amounts of Nepali currency back into India is technically restricted. Spend your NPR before you leave or exchange it back to INR at the border. The Indian side is often stricter about what you’re bringing back in than the Nepali side is about what you’re bringing in.
What about the Rs 2,000 note?
Remember those pink Rs 2,000 notes? They’ve mostly been phased out in India anyway, but they remain a point of confusion in Nepal. Even with the new easing of rules, many Nepali businesses remain terrified of the 2,000-rupee note because of how quickly India withdrew them from circulation. My advice? Don't even bother with them. Even if someone says they’re legal, you’ll spend half your trip trying to find someone willing to change one.
Actionable Next Steps
- Audit your wallet: Ensure you don't have more than INR 25,000 in denominations of Rs 200 and Rs 500.
- Download a UPI app: If you haven't already, set up PhonePe or Google Pay; it's the safest "emergency" backup you can have in Nepali cities.
- Withdraw "Fresh" Notes: If you're carrying cash, try to get crisp, new notes from an ATM or bank in India before you leave. Torn or heavily soiled notes are often rejected by exchange counters in Nepal.
- Keep a Copy of Your ID: Always have a photocopy of your Aadhaar or Voter ID. You'll need it for everything from getting a local SIM card to potentially explaining your currency at the border.