As per a report in Kathmandu Post, the central bank of the country issued circular prohibiting Nepalese travelers, banks and financial institutions from holding or carrying and trading Indian bank notes higher than Rs 100.
The Nepal Rastra Bank said in the circular that Indian currency of 200, 500 and 2000 denominations will no longer be used, the report said.
The Nepali citizens cannot carry the banned denominations to countries other than India. They are also not allowed to bring such notes from other countries.
The Bank however allowed Rs 100 notes for trading and conversion.
The government’s cabinet had decided to publish the notification in the Nepal Gazette not to allow people to carry Indian currency notes above 100 in Nepal, on December 13, last year.
Travel traders and entrepreneurs are critical of the move. A section considers it as a blow to country’s tourism.
KP Oli the Nepalese premier had said earlier this year that demonetization hurt the Nepalese people.
The Indian government introduced new banknotes of Rs 2,000, Rs 500 and Rs 200 denominations after the demonetisation of old notes worth Rs 500 and 1,000 in 2016