Kathmandu, Jan. 21 -- Nepal Rastra Bank on Sunday issued a circular prohibiting Nepali travellers, banks and financial institutions from holding or carrying and trading Indian bank notes higher than Rs100.

The central bank said in its circular letter that Indian denominations of 200, 500 and 2,000 cannot be carried and used for trading.

Under the new regulation, Nepali citizens cannot carry these denominations to countries other than India. Similarly, Nepalis are also not allowed to bring such notes from other countries. Indian notes of 100 or below, however, are allowed for trading and conversion, the bank's circular reads.

On December 13, the Cabinet had decided to publish the notification in the Nepal Gazette not to allow people to ...