Synopsis: The Reserve Bank of India (RBI) has revised FEMA rules governing the export and import of Indian currency to and from neighbouring countries. The update tightens restrictions for Nepal, Bhutan, Pakistan, and Bangladesh to prevent misuse of the Indian Rupee and strengthen anti-money laundering safeguards.
RBI Revises FEMA Rules on Carrying Indian Currency Across Borders
The Reserve Bank of India (RBI) has amended the Foreign Exchange Management Act, 1999 (FEMA)The changes—issued under Section 47(2)(b)—specifically refine rules for travellers to and from Nepal, Bhutan, Pakistan, and Bangladesh.
The updated norms form part of RBI’s measures to safeguard the integrity of the Indian Rupee and ensure compliance with global anti–money laundering (AML) and counter-terror financing (CFT) standards.
What Has Changed Under the New FEMA Amendment?
The amendment revises Regulation 8 of the FEMA (Export and Import of Currency) Regulations, 2015. Key provisions include:
- Indian residents travelling to Nepal or Bhutan may carry Indian currency up to ₹25,000
- Only ₹100 denomination or below is allowed
- ₹500 and ₹2,000 notes continue to be prohibited
- This aligns with the long-standing policy to allow limited Indian Rupee use in these countries
Rules for Pakistan & Bangladesh
In the case of Pakistan and Bangladesh, the rules remain extremely strict:
- Export or import of Indian currency is prohibited
- Allowed only with prior approval of RBI or under special government exemptions
These tightened controls address concerns related to illicit currency movement, cross-border fraud, and national security.
Why These Restrictions Were Introduced
The RBI noted that these measures safeguard:
- Currency integrity of the Indian Rupee
- Compliance with FATF standards
- Anti-money laundering (AML) obligations
- Counter-terror financing (CFT) frameworks
- Regional monetary and security stability
The changes also reflect the evolving socio-political situation in South Asia and aim to modernise cross-border currency rules.
Immediate Implementation
The amendment was published in the Official Gazette on 28 November 2025 and is effective immediately.
Travellers using land borders with Nepal, Bhutan, Pakistan, and Bangladesh must now strictly follow:
- Updated currency limits
- Denomination restrictions
- Documentation requirements (if any)
Impact on Travellers and Compliance
The revised FEMA rules ensure:
- Greater transparency in cross-border transactions
- Prevention of misuse of high-value Indian currency
- Improved regional financial security
- Alignment with India’s foreign exchange and AML policies
📌 Key Takeaway
RBI’s revised FEMA rules now impose stricter controls on carrying Indian currency to Nepal, Bhutan, Pakistan, and Bangladesh.
Travellers can carry up to ₹25,000 only in ₹100 notes or below to Nepal and Bhutan, while movement of currency to Pakistan and Bangladesh remains prohibited without RBI approval. The move strengthens currency security and enhances anti-money laundering compliance.
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