Prohibition of Indian 1000/500 Rupee Notes in Nepal – Customs to Educate
THE latest CBEC Circular states,
Indian currency notes in the denomination of Rs.1000 and Rs.500 are not permissible for exchange for banking transaction in Nepal in terms of guidelines issued by Ministry of Finance, Government of Nepal and Nepal Rashtra Bank. In fact, the current legal provisions in Nepal provide that notes of these denominations are liable for seizure and the persons carrying them are to be fined or imprisoned for up to three years.
Instances have come to the notice of the Board that many Indian nationals travelling to Nepal by Air or by land routes and carrying Indian currency notes of Rs.500 and Rs.1000 denomination primarily due to ignorance of the law, are not only violating the RBI regulations issued in this regard but also get entangled in legal proceedings for possession of these notes in Nepal, like criminal prosecution along with confiscation of such currency notes.
Board hereby desires that at prominent places at the Airports and Land Customs Stations in India from where the passengers depart, to put up a display / notice board mentioning that “Import / export of Indian currency notes of the denomination of above Rs.100 from / to Nepal is prohibited and would attract penal provisions. The use of such currency notes of the denomination of Rs.1000 and Rs.500 is also prohibited in Nepal. Therefore, these notes are liable to be seized and the persons carrying them are liable to be fined or imprisoned for up to three years in Nepal.”
You may remember, recently the Home Minister of Nagaland was held in Nepal's Tribhuvan International Airport with Indian Currency Notes of Rs. 500 and Rs. 1000 valued at about Rs Nine lakhs.
CBEC Circular No.19 / 2010-Customs Dated : July 13, 2010