RBI Revises FEMA Rules on Carrying Indian Currency to and from Nepal, Bhutan, Pakistan & Bangladesh [Read Circular]
The amendment aims to safeguard the integrity of the Indian Rupee and prevent its misuse across neighbouring jurisdictions.
The Reserve Bank of India (RBI) has amended the Foreign Exchange Management Act, 1999 (FEMA) regulations governing export and import of Indian currency to and from its neighbouring countries.
The amendment, issued under Section 47(2)(b) of the Foreign Exchange Management Act, 1999, refines the rules governing the export and import of Indian currency by residents and non-residents, with specific emphasis on travel involving Nepal, Bhutan, Bangladesh and Pakistan.
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Under the updated provisions, Indian residents travelling to Nepal or Bhutan may carry Indian currency notes up to ₹25,000 in total value, restricted to denominations of ₹100 or below. Carrying higher denominations such as ₹500 or ₹2,000 remains prohibited. The measures are in line with the long-standing policy that allows limited rupee use in these countries while preventing the circulation of high-value Indian notes across borders.
In contrast, the export or import of Indian currency to and from Pakistan or Bangladesh remains strictly barred, except with the prior approval of the RBI or under specific exemptions notified by the Government.
The restrictions have been put in place to safeguard currency integrity and to ensure compliance with anti-money laundering and counter-terror financing standards.
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The amendments have been effectuated through the revision of Regulation 8 of the Foreign Exchange Management (Export and Import of Currency) Regulations, 2015.
Bringing about such changes is reflective of the socio-political situation in the region, and modernises the cross-border currency carriage framework, aligning it with the Financial Action Task Force (FATF) standards and updated security considerations. It also ensures consistency with India’s regional monetary cooperation policies under FEMA.
The notification, published in the official gazette on 28 November, 2025 is effective immediately. Travellers crossing India’s land borders are now required to strictly adhere to the updated limits and denomination conditions.
The amendment underscores the RBI’s continued efforts to enhance transparency in cross-border transactions and maintain the upkeep of foreign exchange management in the South Asian region.
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