Circular No. 81 /2000-Cus
Government of India
Ministry of Finance
Department of Revenue
Sub: Possession of Rs. 500 denomination Indian currency notes – informing Indian passengers about the prohibition
His Majesty”s Government of Nepal has issued a Gazette Notification on June 26, 2000, making the possession of Rs. 500-denomination Indian currency notes in Nepal an offence under Section 5 of Foreign Exchange (Regulation) Act, 2019 (BS) (1962). According to clause (a) of the said Notification, Indian currency notes of Rs. 500-denomination are not permitted anywhere in the Kingdom of Nepal, since these are non-exchangeable. The said Notification, accordingly, prohibits the currency notes of this denomination to be either taken out or brought inside Nepal. Further, the 500-Rupee notes in possession of the defaulters are liable to be seized and a sentence of up to three years imprisonment could be awarded.
2. To ensure that Indian nationals visiting Nepal are not inconvenienced for carrying such notes inadvertently/unknowingly, it is requested that necessary action may be urgently taken to give wide publicity to the aforesaid restrictions and contents of the said Nepalese Gazette Notification prohibiting the possession of Indian currency notes of Rs. 500-denomination in Nepal.
3. You are requested to prominently display notices at the Airports and Land Customs Stations highlighting this fact and advising all travellers to Nepal regarding this new provisions of Nepalese law.