The widespread rumor that Indian tourists can bring only INR 25,000 when entering Nepal has created confusion, negatively impacting both tourists and Nepal’s tourism industry.
Tourism entrepreneurs have been urging the government to remove this supposed restriction, which has also been raised in Parliament. Some MPs had called for amending the law concerning the INR 25,000 limit, further fueling confusion.
Tourism entrepreneurs argue that if Nepal aims to be a tourist-friendly destination and revitalize its tourism sector, any such restriction should be lifted immediately. They believe the alleged limit is detrimental to the industry's growth.
Despite ongoing concerns, Nepal Rastra Bank has clarified that there is no mandatory law restricting Indian tourists from bringing more than INR 25,000 into Nepal. Jiwan Prakash Pandey, Information Officer at Nepal Rastra Bank’s Provincial Office in Bhairahawa, stated that no legal provision prohibits tourists from carrying amounts exceeding INR 25,000.
Pandey explained that, as per Section 29(a) of the Prevention of Money Laundering Act, 2064 (enforced from July 17, 2018), individuals can carry up to NPR 5,000, USD 5,000, or an equivalent amount in other foreign currencies when entering or exiting Nepal.
Indian tourists not only visit Nepal for sightseeing but also frequent casinos in border areas like Bhairahawa. Over half a dozen casinos operate there, primarily catering to Indian visitors. Tourism and hotel entrepreneurs claim that, in the past, police would sometimes intimidate Indian casino-goers regarding the INR 25,000 issue. The recent clarification from Nepal Rastra Bank has provided them relief.
During India's demonetization, the Indian government, in coordination with Nepal, had allowed Nepali workers in India to exchange up to INR 25,000. At that time, INR 500 and INR 1,000 notes were also exchanged for their convenience. However, when Nepal Rastra Bank later sent the demonetized notes to India for exchange, the Indian government refused to accept them, leading Nepal to revoke the arrangement.
Lumbini Province Police Chief, Deputy Inspector General Dan Bahadur Karki, stated that security forces have been instructed not to bother tourists over such minor issues.
Although tourists are allowed to bring Indian currency equivalent to USD 5,000, Nepal prohibits denominations above INR 100. Currently, India has INR 200, 500, and 2,000 notes in circulation, but Nepal only allows the use of INR 100 notes.
Thakur Kumar Shrestha, president of the Siddhartha Chamber of Commerce and Industry, pointed out that this restriction has caused inconvenience to the Indian tourists. Even though there is no limit on the amount they can bring, carrying large sums in INR 100 notes is cumbersome.
Nepal has become a popular destination for Indian tourists, not just for sightseeing and casinos but also for destination weddings. Stakeholders believe that if Nepal facilitates higher spending by Indian visitors, it will significantly boost the tourism sector and contribute to the economy. -- RSS
