The Nepalese information and communications ministry said Indian currency notes higher than Rs 100 were illegal in the country.
Kathmandu: The Nepal government has banned the use of Indian currency notes of Rs 2,000, Rs 500 and Rs 200 denominations, according to a media report.
The government has asked the people to refrain from keeping or carrying Indian bank notes higher than Rs 100 denomination as it has not legalized them, The Kathmandu Post quoted Minister for Information and Communications Gokul Prasad Baskota as saying.
The decision can affect Nepalese laborers working in India as well as Indian tourists visiting Nepal.
The Indian government introduced notes of Rs 2,000, Rs 500 and Rs 200 denominations after demonetisation in 2016.
People have been using new Indian currency notes in the Nepali market for nearly two years. -PTI
An unfortunate development. When a foreigner uses our currency, the benefit of seigniorage accrues to the RBI and India. It also reflects a bond of friendship and solidarity, like the open border. Immediately after December 2016, we ought to have made special arrangements for Indian currency held by Nepali citizens to be redeemed. The amount was trivial in relation to the total stock of fifteen trillion, however it mattered to the Nepalese. It is only a matter Ipoh time before they start using Chinese currency.