India agrees to lift ban on Rs.200-500 notes in Nepal

The Reserve Bank of India has "agreed" to allow travellers to carry Rs.200 and Rs.500 currency notes in Nepal but, restricted them from taking the notes to India. Bhimsa Raj Dhugana, executive director of Foreign Currency Exchange Department of Nepal Rastra Bank, confirmed the development. He said the transaction could create problems when exchanging currencies, and informed that they were in talks with RBI to simplify the process. Dhungana said they also asked RBI to allow the use of Rs.2000 note in Nepal, but the central bank refused.