KATHMANDU, Aug 26: Nepal Rastra Bank (NRB) has set a ceiling on the amount of foreign currency travelers can carry when entering or leaving the country.
In a public notice issued on Tuesday, the central bank announced that individuals may carry a maximum of US $5,000 in cash. This limit applies to all travelers entering or departing Nepal.
“Individuals wishing to carry more than USD 5,000 must declare the amount in advance with customs,” the NRB circular stated. In addition, the bank has prohibited carrying Indian currency in denominations of 200, 500, and 2,000 rupees, as well as conducting transactions using these notes.
Revised interest rate corridor system introduced
The NRB has also barred Nepali citizens from carrying Indian currency when traveling to countries other than India and cautioned against using old Indian notes of 500 and 1,000 rupees, which have been demonetised by the Government of India.
The new rules, enforced under the Foreign Exchange (Regulation) Act 1962, Money Laundering Prevention Act 2008, and a notice published in the Nepal Gazette, aim to regulate the carrying and use of foreign currency, according to the NRB.
The government has intensified efforts to remove Nepal from the Financial Action Task Force’s (FATF) grey list. An NRB official said the measure is intended to curb the smuggling of hard currency across Nepal’s borders.
The FATF’s September 2023 Mutual Evaluation Report on anti-money laundering and counter-terrorist financing highlighted a key weakness in Nepal’s failure to implement a cash declaration system. The international watchdog expressed serious concern over the growing smuggling of cash, gold, and silver through the country’s porous borders.
