Indian nationals visiting Nepal can now bring along with them Indian currency notes in denominations of Rs 500 and Rs 1,000.
In a statement released on 22 January, the Reserve Bank of India (RBI) has informed all Indian nationals that they can now use Indian currency notes in denomination of above Rs 100.
The new regulation, which is also applicable for Indian nationals visiting Bhutan, is expected to ease problems facing the hardship facing Nepali migrant workers, too.
Earlier, Indian nationals travelling to Nepal and Bhutan were allowed to carry Indian currency note in denomination of only up to Rs 100.
However, Indian nationals are not allowed to carry more than Rs 25,000 as per the new regulation. Earlier, there was no limit on the amount of money they would carry to Nepal and Bhutan.
The RBI has stated that the new move aims at easing problems facing Indian nationals travelling to the mountainous countries.
"This (the regulation) has been relaxed to mitigate hardship faced by individuals travelling to Nepal and India," read the RBI's statement.
The RBI's announcement comes nearly six months after Indian Prime Minister Narendra Modi stressed the need to relax the regulation about use of Indian currency notes in Nepal.
After inaugurating Trauma Centre in Kathmandu in August 2014, India PM had said that the governments of both countries had reached an understanding to relax the regulation about Indian currencies.