Kathmandu: Nepal Rastra Bank has clarified that Nepali or foreign citizens entering Nepal with foreign currency equivalent to up to US$ 5,000 do not need to make a customs declaration.
The central bank stated that travelers are allowed to bring in only up to this limit.
In the case of Indian currency, too, an amount equivalent to US$ 5,000 in cash can be brought into Nepal without customs declaration, the central bank added.
Recently, Indian citizens had been facing problems when bringing Indian currency in cash to border-area hotels for payments related to weddings and other events. In response, demands had been raised to make the system more convenient.
According to Nepal Rastra Bank, up to US$ 5,000 can be brought into Nepal without customs declaration, while amounts exceeding this limit can also be brought in but must be declared at customs.
The bank said that if anyone wishes to bring in cash foreign currency worth more than US$ 5,000, a customs declaration is mandatory.
“This arrangement has been made in accordance with Section 5 and Section 12 of the Foreign Exchange (Regulation) Act, 2019; Section 29(k) of the Money Laundering Prevention Act, 2008; and the notice published in the Nepal Gazette on 7 January 2019,” Nepal Rastra Bank stated in a notice published on Tuesday.
For amounts above US$ 5,000, the requirement to declare and certify the cash will follow the rules outlined in a notice published on 8 April 2019. Furthermore, as per the Gazette notice of 7 January 2019, no person is allowed to use or transact Indian Rs 500 and Rs 1,000 notes that were in circulation before 9 November 2016. Likewise, keeping, carrying, or transacting Indian currency notes of Rs 200, Rs 500, and Rs 2,000 is also prohibited.
The notice further mentioned that Nepali citizens are not allowed to take Indian currency to countries other than India, nor can they bring Indian currency into Nepal from other countries.
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