Nepal has lifted a decade-long ban on high-denomination Indian currency, allowing individuals to carry up to INR 25,000 between the two nations, a move confirmed by government spokesperson Jagdish Kharel following a Cabinet meeting. This policy change permits both Nepali and Indian citizens to carry Indian banknotes of denominations Rs 200 and Rs 500, addressing long-standing issues faced by migrant workers and tourists who previously struggled with lower denominations, leading to increased vulnerability to theft and legal troubles. The decision is a response to amendments made by the Reserve Bank of India, which recognized the unique economic interdependence between India and Nepal, where Indian rupees function as a parallel currency. The easing of these restrictions is expected to facilitate smoother cross-border trade and tourism, significantly benefiting Nepal’s economy, which relies heavily on trade with India, accounting for over 60% of its external commerce. However, the Nepal Rastra Bank will need to clarify logistics related to the exchange of unexchanged notes and monitor for potential illicit financial flows, ensuring that the benefits of this new policy are fully realized while mitigating risks.