Do not Carry IC in More than 100 Rupee Denomination to Nepal,
Penalties, Prosecution and Seizure of IC Liability on Contravention
[CBEC Circular No. 19 dated
13th July 2010]
Subject: Display
at Airports / LCS about prohibition of import / export of Indian currency notes
of denomination of above Rs.100 in India and in Nepal.
As you may be aware,
the export and import of currency notes of Government of India and Reserve Bank
of India notes (other than notes of denominations of above Rs.100 in either
case) is not allowed to and from Nepal and Bhutan in terms of Notification No.
FEMA 6 / RB-2000 dated 3.5.2000 issued under Foreign Exchange Management
(Export and Import of Currency) Regulations, 2000 by the Reserve Bank of India.
Similarly, the Indian currency notes in the denomination of Rs.1000 and Rs.500
are not permissible for exchange for banking transaction in Nepal in terms of
guidelines issued by Ministry of Finance, Government of Nepal and Nepal Rashtra Bank. In
fact, the current legal provisions in Nepal provide that notes of these
denominations are liable for seizure and the persons carrying them are to be
fined or imprisoned for upto three years.
2. Instances have come to the notice of the
Board that many Indian nationals travelling to Nepal by Air or by land routes
and carrying Indian currency notes of Rs.500 and Rs.1000 denomination primarily
due to ignorance of the law, are not only violating the RBI regulations issued
in this regard but also get entangled in legal proceedings for possession of
these notes in Nepal, like criminal prosecution along with confiscation of such
currency notes.
3. The matter has been examined in the Board. In
order to check such illegal import / export of currency notes of denomination
of above Rs.100 and to prevent harassment and avoidable legal issues, it is
felt necessary to educate / sensitize the people travelling between Nepal and
India through Air or land routes regarding aforementioned legal
provisions. Accordingly, since the
import and export of Indian currency notes of denomination of above Rs.100/-
(in either case) is prohibited as per Indian law and the use of Indian currency
notes of denomination of Rs.500 and Rs.1000 is also prohibited in Nepal, Board
hereby desires that at prominent places at the Airports and Land Customs
Stations in India from where the passengers depart, to put up a display /
notice board mentioning that “Import /
export of Indian currency notes of the denomination of above Rs.100 from / to
Nepal is prohibited and would attract penal provisions. The use of such currency notes of the
denomination of Rs.1000 and Rs.500 is also prohibited in Nepal. Therefore, these notes are liable to be
seized and the persons carrying them are liable to be fined or imprisoned for upto three years in Nepal.”
4. The concerned airlines can also be requested
to sensitize the passengers at the time of departure by displaying such
advisory at their Check-in Counters.
F.No.520/23/2010-Cus.VI