If you're taking a convenient side trip to Nepal from India, here's something to keep in mind. Indian currency is accepted in Nepal. However, what many people overlook is that 1,000 and 500 Indian rupee notes aren't allowed to be brought into Nepal, and it's actually illegal to use them there.
The issue arose again recently, when the Home Minister of Nagaland (in India's north east region) was detained at Kathmandu International Airport for carrying close to 9 lakh ($19,200) in 1,000 and 500 Indian rupee notes. Apparently, he had gone to Nepal for a wedding, and was unaware of the rules.
The Nepali Government has now issued notices to inform people entering the country of the ban. Needless to say, authorities will be on the lookout for offenders. The notes can be seized and the person carrying them imprisoned for up to three years.
And why have the notes been prohibited? Due to increasing instances of counterfeiting.
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