"We have decided to allow our nationals to carry Rs 500 and Rs 1,000 denomination notes up to the limit of Rs 25,000," Prime Minister Narendra Modi announced here.
Indian bank notes above Rs 100 were banned in Nepal on India's request as it feared that proliferation of fake currency in high denominations were infiltrating the country.
The new arrangement will benefit tourists from both the countries as they could earlier carry only Rs 100 denomination notes.

Modi, Koirala flag-off Kathmandu-Delhi bus service
Prime Minister Narendra Modi and his Nepalese counterpart Sushil Koirala today on Tuesday flagged off the Kathmandu-Delhi bus service called Pashupatinath Express from here.
Before the flagging off, both the Prime Ministers hopped into the bus and interacted with the travellers of the bus, which was decorated with streamers, balloons and flowers.
The bus service is touted to be a major boost in terms of trade and tourism and will also strengthen the bilateral ties between the two neighbouring countries.
The route, the bus service will follow would be from Kathmandu, Bhairawa, Sanauli, Gorakhpur, Lucknow and New Delhi.

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