Kathmandu, 11 April: A few days ago, Finance Ministry Secretary Dr. Ghanshyam Upadhyay, speaking at a program held in Biratnagar, said that Indian tourists would face no problem bringing Indian currency equivalent to 5,000 US dollars into Nepal. This statement made businesspeople quite optimistic.
He had said, “Indian tourists can now confidently travel to Nepal carrying up to 415,000 Indian rupees, which is equivalent to 5,000 US dollars, in cash.”
Until now, Indian citizens were not allowed to bring more than 25,000 Indian rupees into Nepal. So, business communities were encouraged by the belief that Indian tourists would now be able to visit more easily with sufficient spending money. However, the difficulty for Indian tourists in carrying enough cash is not due to the Nepali government’s policy, but rather restrictions imposed by the Indian side.
A similar incident occurred last week at Jogbani, a border market between Nepal and India. A group of Indian tourists traveling to Nepal was stopped and questioned for hours by Indian police.
The reason was that they were carrying more cash than the 25,000 INR limit set by the Indian government. Eventually, they were allowed to enter Nepal only on the condition that they carry no more than 25,000 INR. However, their enthusiasm for the trip had already faded at the border. Such incidents occur not only on the Indian side but sometimes also with Nepal Police.
Tourists carrying two to three lakh Indian rupees have occasionally been detained in Biratnagar and Itahari. As a result, Indian tourists are increasingly finding travel to Nepal troublesome.
Just on Thursday, two individuals, including one Indian national, were arrested from Bhantabari in Sunsari. Authorities recovered 500,000 Nepali rupees and around 13,000 Indian rupees from them. Police suspected the money could be related to illegal hundi transactions.
Such incidents are common in border areas, making it difficult for police to distinguish between genuine tourists and illegal traders.
Bhavish Kumar Shrestha, coordinator of the Koshi Tourism Year Steering Committee, says there is a gap between government policy and its implementation. According to him, the government has some limitations in understanding the issue.
“The government listened to the problem but did not fully understand it,” Shrestha said. “Simply allowing Indian currency equivalent to 5,000 dollars is not a solution. The real issue is that India does not allow its citizens to carry more than 25,000 INR when entering Nepal. Until there is diplomatic understanding between the two countries, the problem will not be easily resolved.”
Indian visitors come to border towns in Nepal for casinos, luxury hotels, medical colleges, religious tourism, and healthcare. However, due to restrictions on carrying sufficient cash, they are unable to spend as they wish.
Although Secretary Upadhyay argued that spending Indian currency would ease pressure on Nepal’s dollar reserves, businesspeople believe the government should find a practical solution through the upcoming budget.
According to tourism entrepreneur Shrestha, until there is coordination between the security agencies of Nepal and India and a new agreement is reached to raise the 25,000 INR ceiling, traveling to Nepal will remain an “economic hassle” for Indian tourists.
He also noted that the number of Indian tourists has declined after the Gen-Z movement. Earlier, there was a strong presence of Indian visitors in hotels and lodges in areas like Biratnagar, Itahari, and Bhedetar. However, concerns over protests and security have discouraged many from visiting.
He added, “If we can guarantee peace, security, and smooth movement, there is strong potential to attract a large number of Indian tourists to this region. We have also made considerable efforts to attract Indian visitors on the occasion of Koshi Tourism Year.”
