- Thursday, 4 June 2026
Morang, April 14: A few days ago, Finance Secretary Dr. Ghanshyam Upadhyay, speaking at an event in Biratnagar, stated that Indian tourists could bring Indian currency equivalent to USD 5,000 into Nepal without any difficulty.
His remarks raised optimism among tourism entrepreneurs. “Indian tourists can now confidently travel to Nepal carrying up to INR. 415,000, equivalent to USD 5,000, in cash,” he said.
Until now, Indian nationals were unable to carry more than INR. 25,000 into Nepal, and the announcement generated hope among businesses that tourists would now be able to spend more freely.
However, it has become evident that the restriction is not due to Nepal’s policy, but rather controls imposed by the Indian side.
An incident last week at Jogbani, a border market between Nepal and India, illustrates the problem.
A group of Indian tourists travelling to Nepal were detained and questioned for hours by Indian police because they were carrying cash exceeding the INR. 25,000 limit set by Indian authorities.
Eventually, they were allowed to enter Nepal only after reducing the amount to the permitted limit, but their enthusiasm for the trip had already diminished.
Such incidents are not limited to the Indian side, similar cases have also occurred involving Nepal Police.
Tourists carrying two to three hundred thousand Indian rupees have occasionally been detained in Biratnagar and Itahari.
As a result, many Indian visitors have begun to see travelling to Nepal as inconvenient. Just on Thursday, two individuals, including an Indian national, were arrested in Bhantabari, Sunsari.
Authorities recovered Rs. 500,000 in Nepali currency and around INR.13,000 from them.
Police suspected the money might be linked to illegal hundi transactions. Such incidents are frequent in border areas, making it difficult for law enforcement to distinguish between genuine tourists and those involved in illegal activities.
Bhabish Kumar Shrestha, coordinator of the Koshi Tourism Year Steering Committee, said there is a gap between government policy and its implementation.
“The government has heard the problem but has not fully understood it,” he said. “Simply allowing Indian currency equivalent to USD 5,000 is not a solution when India itself does not permit its citizens to carry more than INR. 25,000 across the border.
Unless there is diplomatic understanding between the two countries, the issue cannot be easily resolved.”
Indian visitors are keen to travel to Nepal for casinos, luxury hotels, medical colleges, religious tourism and healthcare services, particularly in border towns.
However, restrictions on carrying sufficient cash limit their ability to spend. While Secretary Upadhyay argued that spending Indian currency in Nepal would ease pressure on Nepal’s foreign exchange reserves, business operators insist that the government must find a practical solution through the upcoming budget.
Tourism entrepreneur Shrestha further stated that unless there is coordination between the security agencies of Nepal and India and a new bilateral understanding is reached regarding the INR. 25,000 ceiling, travel to Nepal will continue to be financially inconvenient for Indian tourists. He also noted that the flow of Indian tourists has declined following the “Gen Z movement”.
Previously, hotels and lodges in Biratnagar, Itahari and Bhedetar saw a strong presence of Indian visitors, but concerns over unrest and security have discouraged many from visiting.
“If we can ensure safety and facilitate smooth movement, there is a strong potential to attract a large number of Indian tourists to this region,” he said, adding that efforts have already been made to attract Indian visitors as part of the Koshi Tourism Year campaign.
