Why 1000 and 500 Indian rupee are not accepted in Nepal and Bhutan?
Why all Indian rupee notes are accepted in Nepal and Bhutan, except 500 Rs and 1000 Rs? Why spare those two notes?
Best Answer
As Mark Mayo's answer states, these two denominations were "banned" (either officially or unofficially) in the two countries due to issues with counterfeit notes. Other denominations were not banned since most fraud on high value items / purchases would involve these two denominations.
While a lot of travel websites and guides state these are still banned, this is old advice. In practice, trading in these two denominations never really stopped. As of 2015, even government shops and agencies in Bhutan accept Rs 500 and 1000, for instance.
Having said that, there are very strict controls on export and import of Indian currency by non-Indian nationals (excluding those of a neighbouring SAARC countries). So you may find, depending on your nationality, that the point on whether those denominations are accepted is moot because you're not allowed to take Indian rupees anyway.
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Does Indian 500 rupees work in Nepal?
The central bank had said in its circular letter that Indian denominations of 200, 500 and 2,000 cannot be carried and used for trading. Under the new regulation, Nepali citizens cannot carry these denominations to countries other than India.Do they accept Indian rupee in Nepal?
Even the Indian currency is well accepted across Nepal. No need to change it. You can even use Indian Rupee in Nepal. Or any one can give you change of currency.Is 500 notes banned in Nepal?
Nepal bans use of Indian currency notes of Rs 2,000, Rs 500 and Rs 200 denominations.Why foreign exchange is not allowed in Nepal and Bhutan?
International Credit Cards issued in India are valid for payment only in rupees in respect of liabilities created in Nepal and Bhutan. Residents are, therefore, prohibited from incurring foreign exchange liability against such cards in Nepal and Bhutan.Nepal Rs 100 and Bhutan Nu 100 comparison video
More answers regarding why 1000 and 500 Indian rupee are not accepted in Nepal and Bhutan?
Answer 2
Both the governments(Nepal and India) have agreed to permit the use of INR500 and INR1000 notes. So it is totally legal to carry INR500, INR1000 notes to Nepal if you are going to Nepal.
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